Procter & Gamble Q4 Results: Focus on Fiscal Year Outlook (NYSE:PG)

Proctor and Gamble posts strong profits as demand for cleaning products surges amid pandemic — Joe Raedle/Getty Images News

Procter & Gamble (NYSE:PG) is scheduled to report its fourth-quarter results on July 30, Tuesday, and investors will be closely watching the consumer company’s full-year outlook.

The consensus earnings per share estimate is $1.37 (constant year-over-year) and the consensus Estimated revenues amount to USD 20.74 billion (+0.7% y/y).

Procter & Gamble could face a bit of a challenge in what is still considered an inflationary environment as consumers continue to tighten their belts.

Jefferies had both Procter & Gamble and warned that the personal care household goods sector was in the early stages of a slowdown as U.S. demand elasticity weakens

“I strongly believe that Procter & Gamble’s focus on ‘low-cost’ products – meaning low-dollar items – is one of the key factors, alongside its undoubtedly strong brand equity, that explains why the company is doing so well in this challenging environment,” said South African analyst Deep Value Ideas.

Investors will also be closely monitoring the company’s SK-II line as the company reported a 30 percent decline in sales in China last quarter.

“If PG loses its ability to grow volume, raise prices or respond to consumer preferences, it could hurt its financial results and lead to greater share price volatility,” said an analyst at South African-based Cash Flow Venue.

“Investors should be alert to headwinds that are limiting its growth to some extent,” Cash Flow Venue added.

Procter & Gamble (PG) missed organic sales expectations in the latest quarter as pricing benefits began to fade, but the consumer goods giant raised its full-year earnings per share growth forecast.

Over the last 2 years, PG has beaten earnings per share estimates 75% of the time, and revenue estimates 75% of the time.

Over the past 3 months, EPS estimates have seen 5 upward revisions and 5 downward revisions. Revenue estimates have seen 0 upward revisions and 11 downward revisions.

The company’s shares were up 15.2% since the beginning of the year.