Shares of Procter & Gamble Company (PG) fell in trading after the consumer goods company reported mixed fourth-quarter results. The company reported earnings for its Fiscal fourth quarter of $1.40 per share, an increase of 2% year-over-year, which beat analysts’ consensus estimate of $1.37 per share.
P&G’s Q4 Revenue Breakdown
Sales remained flat in the fourth quarter with revenues of $20.5 billion, missing analysts’ expectations of $20.7 billion. Organic sales increased by 2% in the fourth quarter but were below Street expectations of a rise of 3.4%.
However, the company’s volumes rose by 1% in Q4, driven by 2% volume growth in each of the Grooming, Health Care, and Fabric and Home Care businesses. Conversely, P&G’s Beauty, Baby, and Feminine Care business saw a 1% decline in volume due to lower demand for its costlier SK-II skincare brand and diapers.
P&G’s Fabric and Home Care business reported revenues of $7.3 billion in the fourth quarter, comprising more than 30% of the company’s total revenues in Q4.
PG’s FY25 Guidance
Looking forward, management now expects FY25 revenue to grow in the range of 2% to 4% and adjusted earnings per share to be between $6.91 and $7.05. For reference, analysts were expecting an adjusted EPS of $6.96.
Is PG a Good Stock to Buy Now?
Analysts remain bullish about PG stock, with a Strong Buy consensus rating based on 11 Buys and three Holds. Over the past year, PG has increased by more than 10%, and the average PG price target of $177.85 implies an upside potential of 4.7% from current levels. These analyst ratings are likely to change following PG’s results today.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
