The Procter & Gamble Company (NYSE:PG) is scheduled to report Q2 earnings results on January 23, 2020, before markets open for trading.
The company is expected to report earnings of $1.38/share on revenue of $18.329 billion. The consensus earnings per share (EPS) of $1.38/share is based on a poll of 18 analysts and represents a growth of 10.4% over the same quarter last year when the company reported earnings of $1.25/share.
The revenue forecast of $18.329 billion based on a poll of 13 analysts implies a year-over-year (YoY) growth of 5.1%. Last year the company reported $17.438 billion in revenue for the quarter.
|Metric||Expected||Prior Year||YoY Change|
Earnings Call Trends
Management has been great at managing analyst expectations historically. The company has a perfect record over the last 8 tracked quarters of exceeding earnings guidance.
What are your expectations from Procter & Gamble for earnings this quarter? Let us know in the comments!
In the following table, we summarize the company’s stock price movements after earnings releases. The “Price Day Prior” column shows the closing stock price on the day before the earnings report, and the “Price Next Day” column shows the stock price at the end of the trading day after the earnings report.
After the last earnings report for the period ending September 30, 2019, the stock price reacted by increasing by 3.3%.
|Report Date||Price Day Prior||Price Next Day||Change %||Result|
Fundamentals And Technical Analysis
Procter & Gamble is currently trading at $126.09/share, down -0.3% for the day. The company is trading at approximately 99.3% of its 52-week high of $127/share. The company’s stock price is up 2.5% since the last earnings report and up 1.1% over the previous week.
The company’s 14 Day Relative Price Index (RSI) of 64.25 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.
The current share price implies a price-to-earnings (P/E) multiple of 72.1x and a forward P/E multiple of 24.2x. Procter & Gamble’s current share price also implies a price-to-book (P/B) multiple of 6.9x. The following table summarizes some other key fundamental ratios:
|Last Fiscal Period||FY2020.Q1|
|Period End Date||September 30, 2019|
|Stock Price (Current)||$126.09|
|P/E Ratio (Fwd)||24.2x|
|Total Debt to Capital (%)||8.8%|
|Levered Free Cash Flow||$12.498 billion|
|Enterprise Value / EBITDA||18.8x|
Company Profile: The Procter & Gamble Company
The Procter & Gamble Company is a large-cap stock with a market capitalization of $315.2 billion and a total enterprise value of $337.7 billion. The company operates in the Consumer Staples sector and the Household Products industry.
The Procter & Gamble Company provides branded consumer packaged goods to consumers in North and Latin America, Europe, the Asia Pacific, Greater China, India, the Middle East, and Africa. It operates in five segments: Beauty; Grooming; Health Care; Fabric & Home Care; and Baby, Feminine & Family Care.
The Beauty segment offers conditioners, shampoos, styling aids, and treatments; and antiperspirants and deodorants, and personal cleansing and skincare products under the Head & Shoulders, Herbal Essences, Pantene, Rejoice, Olay, Old Spice, Safeguard, SK-II, and Secret brands. The Grooming segment provides female and male blades and razors, pre-shave and post-shave products, and other shave care products; and appliances that include electric shavers and epilators under the Braun, Gillette, and Venus brands.
The Health Care segment offers toothbrushes, toothpaste, and other oral care products; and gastrointestinal, rapid diagnostics, respiratory, vitamins/minerals/supplements, pain relief, and other personal health care products under the Crest, Oral-B, Metamucil, Neurobion, Pepto Bismol, and Vicks brands. The Fabric & Home Care segment provides fabric enhancers, laundry additives, and laundry detergents; and air care, dish care, P&G professional, and surface care products under the Ariel, Downy, Gain, Tide, Cascade, Dawn, Fairy, Febreze, Mr. Clean, and Swiffer brands.
The Baby, Feminine & Family Care segment baby wipes, taped diapers, and pants; adult incontinence and feminine care products; and paper towels, tissues, and toilet papers under the Luvs, Pampers Always, Always Discreet, Tampax Bounty, Charmin, and Puffs brands.
The company sells its products through mass merchandisers, e-commerce, grocery stores, membership club stores, drug stores, department stores, distributors, wholesalers, baby stores, specialty beauty stores, high-frequency stores, and pharmacies.
The Procter & Gamble Company was founded in 1837 and is headquartered in Cincinnati, Ohio.