Erste Group Bank Analysts Decrease Earnings Estimates for PG

Key Points

• Erste Group Bank lowered its FY2027 EPS forecast for Procter & Gamble to $7.01 from $7.02, though the estimate remains above the broader consensus of $6.88.
• Procter & Gamble reported quarterly EPS of $1.43, matching expectations, but revenue of $21.20 billion fell short of the $21.38 billion consensus. Sales volume was unchanged, with weakness in grooming and oral care.
• Management issued FY2027 EPS guidance of $6.89-$7.11 and revenue guidance of $85.1 billion-$86.8 billion, citing tighter consumer spending, higher costs and challenging economic conditions; analysts maintain a “Moderate Buy” consensus with a $161.74 price target.

Procter & Gamble Company (The) (NYSE:PG - Free Report) - Investment analysts at Erste Group Bank cut their FY2027 earnings per share (EPS) estimates for shares of Procter & Gamble in a research note issued on Monday, July 27th. Erste Group Bank analyst S. Lingnau now forecasts that the company will post earnings per share of $7.01 for the year, down from their previous forecast of $7.02. The consensus estimate for Procter & Gamble's current full-year earnings is $6.88 per share.

Procter & Gamble (NYSE:PG - Get Free Report) last released its quarterly earnings data on Wednesday, July 29th. The company reported $1.43 earnings per share (EPS) for the quarter, hitting analysts' consensus estimates of $1.43. The business had revenue of $21.20 billion for the quarter, compared to the consensus estimate of $21.38 billion. Procter & Gamble had a return on equity of 32.00% and a net margin of 19.16%.Procter & Gamble has set its FY 2027 guidance at 6.890-7.110 EPS.

PG has been the topic of a number of other research reports. Barclays upped their price target on shares of Procter & Gamble from $146.00 to $152.00 and gave the company an "equal weight" rating in a research note on Tuesday, July 21st. Wells Fargo & Company lifted their price target on Procter & Gamble from $158.00 to $164.00 and gave the stock an "overweight" rating in a research report on Monday, April 27th. UBS Group upped their price objective on Procter & Gamble from $166.00 to $172.00 and gave the company a "buy" rating in a research report on Monday, April 27th. Sanford C. Bernstein assumed coverage on Procter & Gamble in a report on Thursday, June 11th. They issued a "market perform" rating and a $156.00 target price for the company. Finally, Weiss Ratings reissued a "hold (c)" rating on shares of Procter & Gamble in a research report on Wednesday, June 24th. Twelve analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the company. According to data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus price target of $161.74.

Procter & Gamble Trading Up 0.6%

PG stock opened at $149.59 on Wednesday. The firm has a fifty day moving average price of $147.63 and a 200 day moving average price of $148.90. Procter & Gamble has a fifty-two week low of $137.62 and a fifty-two week high of $167.25. The company has a debt-to-equity ratio of 0.44, a quick ratio of 0.53 and a current ratio of 0.73. The firm has a market cap of $348.33 billion, a PE ratio of 21.87, a price-to-earnings-growth ratio of 7.39 and a beta of 0.39.

Procter & Gamble Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Monday, August 17th. Shareholders of record on Friday, July 24th will be paid a $1.0885 dividend. The ex-dividend date of this dividend is Friday, July 24th. This represents a $4.35 annualized dividend and a yield of 2.9%. Procter & Gamble's dividend payout ratio (DPR) is presently 63.60%.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of the business. Merit Financial Group LLC increased its stake in Procter & Gamble by 6.6% in the second quarter. Merit Financial Group LLC now owns 303,351 shares of the company's stock worth $44,483,000 after purchasing an additional 18,704 shares during the period. Cary Street Partners Financial LLC boosted its stake in shares of Procter & Gamble by 1.1% during the second quarter. Cary Street Partners Financial LLC now owns 104,829 shares of the company's stock valued at $15,372,000 after purchasing an additional 1,108 shares during the period. SeaBridge Investment Advisors LLC bought a new position in shares of Procter & Gamble in the second quarter worth about $315,000. Advocate Group LLC increased its stake in Procter & Gamble by 0.5% in the 2nd quarter. Advocate Group LLC now owns 64,837 shares of the company's stock worth $9,508,000 after buying an additional 310 shares during the period. Finally, Fort Washington Investment Advisors Inc. OH lifted its holdings in Procter & Gamble by 4.3% during the 2nd quarter. Fort Washington Investment Advisors Inc. OH now owns 793,728 shares of the company's stock valued at $116,392,000 after buying an additional 32,746 shares in the last quarter. Institutional investors own 65.77% of the company's stock.

Procter & Gamble News Summary

Here are the key news stories impacting Procter & Gamble this week:

• Positive Sentiment: Procter & Gamble reported quarterly EPS of $1.43, in line with analysts’ expectations, while maintaining strong profitability with a 19.16% net margin and 32% return on equity. Procter & Gamble revenue misses estimates as volume stays unchanged
• Positive Sentiment: CEO Shailesh Jejurikar will become chair of the board effective Aug. 1, a leadership transition that may provide continuity for the company’s strategy. Procter & Gamble revenue misses estimates as volume stays unchanged
• Neutral Sentiment: Management’s fiscal 2027 EPS guidance of $6.89-$7.11 centers around $7.00, modestly below the $7.07 consensus estimate, suggesting limited near-term earnings upside but broadly stable profits.
• Negative Sentiment: Quarterly revenue of $21.20 billion missed the $21.38 billion consensus, and sales volume was unchanged. Weakness in grooming and oral care reflected uneven consumer demand. P&G forecasts muted 2027 as tighter consumer spending hurt demand
• Negative Sentiment: Fiscal 2027 revenue guidance of $85.1 billion-$86.8 billion is well below the $89.5 billion analyst consensus. P&G cited tighter consumer spending, higher costs and a challenging geopolitical and economic environment, while working harder to persuade inflation-pressured shoppers to buy brands such as Tide and Bounty. P&G forecasts muted 2027 as tighter consumer spending hurt demand

About Procter & Gamble

Procter & Gamble NYSE: PG is a multinational consumer goods company headquartered in Cincinnati, Ohio. Founded in 1837 by William Procter and James Gamble, P&G has grown into one of the world's largest producers of branded consumer packaged goods. The company focuses on developing, manufacturing and marketing a broad portfolio of household and personal care products sold to consumers and retailers worldwide.

P&G's product offering spans several core business categories, including Beauty, Grooming, Health Care, Fabric & Home Care, and Baby, Feminine & Family Care.

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