Procter & Gamble Company (NYSE: PG) has confirmed that it will release fiscal Q1 2022 earnings results on October 19, 2021, before the market opens.
What to look for
The company is coming off a solid fiscal 2021 with increased consumer spending as people who spent more time at home purchased most of Procter and Gamble's products. Despite the challenges that supply chains faced during the pandemic, consumer demand continued to increase. As a result, the ability to deal with the supply chain bottlenecks will be significant issue investors will be focusing on when the company releases its Q1 2022 earnings. When the company released its Q4 2021 results, management said they expected to grow top-line and earnings despite the challenging cost and operating environment.
Earnings: Stockearnings Estimated EPS for Procter & Gamble's fiscal Q1 2022 is $1.59 per share, representing a 2.5% drop YoY. Historical EPS Performance shows that the company has topped estimates in 12 (100%) out of the past 12 quarters. In Q4 2021, the company had EPS of $1.13, topping EPS estimates of $1.08.
Revenue: The company expects revenue to grow around 3% in Q1 2022 to $19.8 billion compared to Q1 2021. Procter and Gamble expect its earnings to be affected by increasing freight and commodity costs by $1.9 billion. In Q4 2021, the company reported revenue of $18.95 billion, topping estimates of $18.41 billion.
Stock movement: Since the last earnings release, PG stock is has gained 2.15%. The share price has been UP 27 times in the past 46 quarters following the earnings release. So, the historical price reaction suggests a 58% chance of the share price going UP after earnings release. According to the Stockearning algorithm, the predicted stock move on the first day is 2%, while the predicted move on the seventh day is 3%.
What analysts are saying
BofA analyst Bryan Spillane initiated coverage on the stock with a "Buy" rating and a price target of $160 as part of his broader research on Home, and Personal Care plays. Spillane said that big-name brands are more likely to adapt to the changing market environment with fast-growing direct-to-consumer capability while circumnavigating supply chain challenges. The analyst also stated that the company had realized product innovation benefits in the wake of growing consumer interest in wellness products.
Also, Deutsche Bank's Steve Powers raised his price target in the stock from $160 to $163 per share and maintained his "Buy" rating on the shares ahead of the Q1 2022 earnings. Powers told investors that despite the volatility of near-term dynamics, the company is better placed with scale advantages and robust execution to support market share momentum.
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