Procter & Gamble (PG) Q1 Earnings: What To Expect

Consumer products behemoth Proctor & Gamble (NYSE:PG) will be reporting results tomorrow before market hours. Here’s what investors should know.

Procter & Gamble beat analysts’ revenue expectations by 1.3% last quarter, reporting revenues of $21.88 billion, up 2.1% year on year. It was a satisfactory quarter for the company, with an impressive beat of analysts’ EBITDA estimates but gross margin in line with analysts’ estimates.

Is Procter & Gamble a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Procter & Gamble’s revenue to be flat year on year at $20.17 billion, in line with its flat revenue from the same quarter last year. Adjusted earnings are expected to come in at $1.53 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Procter & Gamble has missed Wall Street’s revenue estimates four times over the last two years.

Looking at Procter & Gamble’s peers in the consumer staples segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Kimberly-Clark’s revenues decreased 6% year on year, missing analysts’ expectations by 1%, and WD-40 reported revenues up 5%, falling short of estimates by 5.4%. WD-40 traded down 8.7% following the results.

Read our full analysis of Kimberly-Clark’s results here and WD-40’s results here.

Investors in the consumer staples segment have had steady hands going into earnings, with share prices flat over the last month. Procter & Gamble is up 3.6% during the same time and is heading into earnings with an average analyst price target of $176.65 (compared to the current share price of $168.25).

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