Procter & Gamble Set to Release Q2 Earnings Report

Company’s performance surpasses past expectations amid mixed results.

Cincinnati, Ohio-based The Procter & Gamble Company (PG) stands as the world’s largest consumer packaged goods company, operating across various segments including Beauty, Grooming, Health Care, Fabric & Home Care, and Baby, Feminine & Family Care. With a robust market cap of $394.8 billion, Procter & Gamble has a presence in over 180 countries across the Americas, Indo-Pacific, and EMEA regions. The company is preparing to announce its Q2 results on Wednesday, January 22, before the market opens.

In the lead-up to this earnings announcement, analysts project that Procter & Gamble will report a profit of $1.88 per share, which marks a 2.2% increase from $1.84 per share in the same quarter last year. Notably, P&G has consistently outperformed Wall Street’s earnings expectations in its last four quarters, achieving an adjusted EPS of $1.93 in the most recent report, which was a 5.5% year-over-year rise and exceeded projections by 1.6%.

Looking ahead to fiscal year 2025, forecasts indicate Procter & Gamble may reach an adjusted EPS of $6.93, reflecting a 5.2% increase from the prior fiscal year’s $6.59. For fiscal 2026, analysts anticipate a further growth of 6.6%, bringing the adjusted EPS to $7.39.

Over the past 52 weeks, Procter & Gamble has gained 11.6%, which is notably less than the S&P 500 Index’s return of 23.7%. However, it has outperformed the Consumer Staples Select Sector SPDR Fund’s (XLP) gain of 7.6% during this period.

Following the release of its mixed Q1 earnings on October 18, P&G’s shares dipped slightly. Although organic sales increased nearly 2% (excluding foreign exchange effects), overall net sales dropped by 61 basis points from the previous year, totaling $21.7 billion. Despite modest growth in non-GAAP earnings, driven by favorable pricing and productivity savings, the company has not reported any growth in volume.

Moreover, Procter & Gamble shared a troubling 12.3% year-over-year decrease in cash operating flows from its operating activities, which raised concerns among investors. Nevertheless, analysts maintain a generally optimistic view on the stock’s long-term potential, assigning it a “Moderate Buy” consensus rating. Among the 27 analysts covering P&G, 15 recommend a “Strong Buy,” two call for a “Moderate Buy,” while 10 suggest a “Hold.” The mean price target stands at $182.50, reflecting a potential upside of 10% from current price levels.

On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.

The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.