Procter & Gamble (PG) delivered better-than-expected Fiscal Q1 2022 results. Revenue and earnings came in above consensus estimates despite the company facing a challenging cost and operating environment. PG shares fell 1.18% to close at $140.66 on October 19.
Procter & Gamble is a consumer products company that offers packaged goods worldwide. The company operates under five key segments: Beauty; Grooming; Health Care; Fabric & Home Care; and Baby, Feminine & Family Care.
Net sales in the quarter increased 5% year-over-year to $20.3 billion, exceeding consensus estimates of $19.91 billion. Organic sales were up 4%, driven by an increase in volumes and a positive product mix. (See Top Smart Score Stocks on TipRanks)
Diluted EPS, on the other hand, dropped 1% year-over-year to $1.61 but still topped consensus estimates of $1.59. A reduction in shares partially offset the EPS decline.
According to CEO David Taylor, Procter & Gamble remains on track to achieve its top-line, bottom-line, and cash targets for the year. Taylor said, “We remain focused on executing our strategies of superiority, productivity, constructive disruption and continually improving P&G’s organization structure and culture.”
For the full Fiscal year 2022, P&G expects sales growth in the range of 2% to 4%, with GAAP diluted EPS expected to grow 6% to 9% versus Fiscal 2021 GAAP EPS of $5.50.
Meanwhile, Jefferies analyst Kevin Grundy recently reiterated a Buy rating on the stock and raised the price target to $163 from $162, implying 15.88% upside potential to current levels.
Consensus among analysts is a Moderate Buy based on 9 Buys and 7 Holds. The average Procter and Gamble price target of $155.80 implies 10.76% upside potential to current levels.
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