Procter & Gamble reports earnings April 26

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Procter & Gamble (PG) is scheduled to post its fiscal third-quarter results before the market opens on April 26. Analysts forecast earnings of $0.81 per share. During the same period last year the company had earnings of $0.92. The stock has gained a modest 1.5% on the year.

Technical Analysis

PG was recently trading at $80.63, down $3.24 from its 12-month high and $15.61 above its 12-month low. Technical indicators for PG are bullish and the stock is showing signs of a possible trend reversal. The stock has fallen below recent support and has recent resistance below $83.70. Of the 18 analysts who cover the stock, eight rate it a “strong buy”, one rates it a “buy”, seven rate it a “hold”, one rates it a “sell”, and one rates it a “strong sell”. The stock receives S&P Capital IQ’s 3 STARS “Hold” ranking.

Analysts' Thoughts

After selling off last summer in sympathy to the overall market, PG shares rallied strongly between September and March. In April, shares have lost their momentum, and have been in a sideways pattern for the last three weeks. An upbeat earnings report could help bring interest back into the stock and push shares higher. PG trades with a P/E of 27.3, and with analysts forecast earnings to decline 3.5% during the year, the upside could be limited at this time. Currency concerns will remain a problem, as the strong dollar continues to impact the company’s bottom line. Most of the company’s products are consumer staples, so it should keep solid demand regardless of overall economic conditions, which will prevent a major sell off, but barring a huge earnings surprise I believe the stock is likely to remain in a sideways or slightly upward trend.

PG
About Procter & Gamble Company (The)

Since its founding in 1837, Procter & Gamble has become the world's largest consumer product manufacturer. It operates with a lineup of leading brands, including 21 that generate more than $1 billion in annual global sales such as Tide laundry detergent, Charmin toilet paper, Pantene shampoo, and Pampers diapers. P&G sold its last remaining food brand, Pringles, to Kellogg in 2012. Sales beyond its home turf represent around 55% of the firm's consolidated total, with around one third coming from emerging markets.

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