Procter & Gamble, one of the largest consumer products companies, is set to release its quarterly numbers on Tuesday. This will give investors a valuable insight into consumer buying trends, as well as potential indicators for the U.S. and global economies.
With a diverse portfolio of popular brands, including Luvs and Pampers diapers, Bounty paper towels, Tide laundry detergent, Crest toothpaste, and Pepto-Bismol stomach relief, P&G’s sales performance will be closely watched. This data will provide valuable information on which products are selling well and which ones are not.
According to FactSet, Wall Street analysts are expecting P&G to report adjusted earnings of $1.70 per share on sales of $21.48 billion. In comparison, the company reported earnings of $1.59 per share on sales of $20.77 billion in the same quarter last year.
However, J.P. Morgan analysts have expressed caution leading up to the fiscal second-quarter report. They have lowered their projections due to concerns about China’s economy and the impact of the Israel-Hamas War. Despite rating P&G shares as “Overweight,” the analysts have reduced their volume estimates and price target.
Their reasoning is based on several factors, including a weaker recovery in China and potential demand softness in smaller markets like Turkey and Saudi Arabia. The negative sentiment surrounding Middle East tensions has hampered demand for American brands in these regions.
Despite these concerns, the J.P. Morgan team remains optimistic about the second half of the year. They believe that lower costs, a favorable product mix, and a strategic pricing strategy could enable P&G to achieve the higher end of its guidance, even if volume recovery is slower than anticipated.
In Monday’s trading session, P&G stock remained steady at $147.57.