The Latest on Procter & Gamble: What to Expect in Q3 2024 Earnings Report

Key Takeaways

• Procter & Gamble (P&G) is expected to enact its smallest quarterly price hikes for products since the first quarter of 2022, according to analysts.
• Backed by growth in sales of home care and healthcare products, analysts expect P&G to post higher quarterly revenue.
• So far in 2024, shares of P&G are outperforming both the Dow Jones Industrial Average and the consumer staples sector.

Procter & Gamble (PG) is anticipated to continue reporting higher revenue when it releases its quarterly earnings on Friday. However, analysts are predicting a slowdown in price increases for the consumer products maker.

Analysts expect P&G to report $20.45 billion in revenue for its 2024 fiscal third quarter ended in March, representing a 1.9% increase compared to the same quarter in the previous year. This would mark the lowest revenue growth for the company in the past five quarters. The company’s adjusted net income is also expected to rise by 1.8% to $3.46 billion from the first quarter of 2023.

Key Metric: Prices

Procter & Gamble saw increased revenue in its December quarter due to higher prices. However, analysts are forecasting that the upcoming earnings report will show the lowest price increases by the company since the first quarter of fiscal 2022, with a projected price hike of 2.75% in the quarter. It could also be the first quarter in two years where P&G reports positive annual growth in sales volumes, with expectations for a 0.35% increase.

Business Spotlight

Procter & Gamble recently detailed a $1.3 billion impairment charge for its subsidiary razor business Gillette, leading to a reduction in its 2024 full-year earnings per share guidance. Despite this, the company maintained its revenue forecasts for 2024 and announced a 7% increase in its quarterly dividend.

CEO Jon Moeller expressed confidence in the company’s performance following strong results in the second quarter. Analysts expect P&G to see significant gains from its fabric and home care segment, with a projected 3.6% increase in revenue year-over-year. Healthcare sales are also expected to rise, while revenue from beauty and personal care products may see a slight decrease.

P&G, a component of the Dow Jones Industrial Average, has had a positive start to 2024 with shares up approximately 6.8% compared to a flat performance by the DJIA. The company is also outperforming the SPDR Consumer Staples Select Sector exchange traded fund (ETF) so far this year.

As P&G prepares to release its Q3 2024 earnings report, investors and analysts will be closely watching how the company’s performance aligns with expectations and market trends.

Read the original article on Investopedia.