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.
