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Key Takeaways
- Procter & Gamble is projected to report a 4% jump in revenue for the second quarter, but net income is forecast to dip 0.8%.
- The consumer product maker has reported better-than-expected earnings in the past two quarters as higher prices have boosted revenue.
- Analysts forecast a slight uptick in earnings-per-share to come in at $1.59.
Analysts expect Procter & Gamble (PG) will report a drop in income in its quarterly earnings on Tuesday, as the consumer product maker looks to keep past quarters’ momentum going.
Procter & Gamble is projected to report revenue of $21.6 billion for the fiscal 2024 second quarter, up nearly 4% from the year-ago period, according to data from Visible Alpha. Second-quarter net income is projected at $3.9 billion, dropping 0.8% from last year, with earnings per share up slightly year-over-year to come in at $1.59.
| Analyst Estimates for Q2 2024 | Q1 2024 | Q2 2023 | |
|---|---|---|---|
| Revenue | $21.6 billion | $21.9 billion | $20.8 billion |
| Earnings Per Share | $1.59 | $1.83 | $1.59 |
| Net Income | $3.9 billion | $4.5 billion | $3.9 billion |
Key Metric
P&G beat on earnings the past two quarters, showing consumers largely accepted the price increases that inflation pressed on its consumer products, which include Tide, Pampers, Bounty and Charmin. With inflation trending lower in recent months, Investors will be looking to see if P&G again raises prices in the second quarter.
Following price hikes across its products over the past two quarters, the company saw sales volumes dip in some segments, like grooming and baby care, where higher prices kept revenue up despite the dip in sales.
Stock Spotlight
A component of the Dow Jones Industrial Average, Procter & Gamble underperformed the index, as the share price of the consumer product maker dropped more than 3% in 2023, compared with a gain of 13% for the Dow, and well below the S&P 500’s surge of 24%.
While the company saw surges in its share price tied to positive earnings reports, it also suffered when it announced $2.5 billion in restructuring charges tied to its Gillette business.