Procter & Gamble to report earnings January 23

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.

What's Happening With PG View more about PG >

Consumer goods maker Procter & Gamble (PG) is scheduled to release its fiscal second-quarter numbers before the market open on January 23. Analysts forecast earnings of $1.14 per share, up from $1.08 during the same period last year. The stock has fallen a modest 0.3% since the start of the year.

Technical Analysis

PG was recently trading at $90.41, down $4.26 from its 12-month high and $6.13 above its 12-month low. Technical indicators for PG are bullish with a weak upward trend. The stock has recent support above $89.50 and recent resistance below $91.75. Of the 13 analysts who cover the stock, six rate it a “strong buy”, one rates it a “buy”, and six rate it a “hold”. PG gets a score of 45 from InvestorsObserver’s Stock Score Report.

Analysts' Thoughts

Last quarter, Procter & Gamble posted its tenth straight earnings beat, but the stock sold off sharply due to a weaker than expected revenue number. PG has since recovered, but has yet to get back to where it was before its last quarterly report. Wall Street has taken a more bullish view of the stock over the last two months, but the company will need to beat estimates on the top and bottom lines for shares to build on their recent gains. The market expects another earnings beat, with a whisper of $1.16, but sales will be a primary focus of Wall Street. Another disappointing revenue figure could quickly drive shares down to $85, where it found support following the last quarterly report. A strong overall economy, in particular the jobs market, has propped up consumer sentiment and spending, so the outlook is favorable for the stock, but current shareholders should have a clear exit strategy in place just in case the sales figure falls short of the $17.34 billion estimate. The stock trades at $90.41 with an average price target of $94.89.

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