Zacks Research Issues Pessimistic Outlook for PG Earnings

Key Points

• Zacks Research lowered Procter & Gamble’s Q1 fiscal 2027 EPS estimate to $1.89 from $1.96 and reduced its FY2027 forecast to $6.97 from $7.05, signaling softer near-term growth expectations.
• P&G’s latest quarter modestly beat EPS expectations at $1.43 versus $1.41, while revenue of $21.20 billion fell short of estimates; sales still increased 1.5% year over year.
• Despite the cautious outlook, analysts maintain a “Moderate Buy” consensus with an average price target of $161.52, and P&G continues to attract income investors with its $4.35 annualized dividend and 3.0% yield.

Procter & Gamble Company (The) (NYSE:PG - Free Report) - Equities research analysts at Zacks Research dropped their Q1 2027 EPS estimates for shares of Procter & Gamble in a note issued to investors on Wednesday, August 12th. Zacks Research analyst Team now forecasts that the company will post earnings of $1.89 per share for the quarter, down from their previous estimate of $1.96. The consensus estimate for Procter & Gamble's current full-year earnings is $6.99 per share. Zacks Research also issued estimates for Procter & Gamble's Q2 2027 earnings at $1.88 EPS, Q3 2027 earnings at $1.66 EPS, Q4 2027 earnings at $1.55 EPS, FY2027 earnings at $6.97 EPS, Q1 2028 earnings at $2.07 EPS, Q2 2028 earnings at $2.03 EPS, Q3 2028 earnings at $1.74 EPS, Q4 2028 earnings at $1.57 EPS, FY2028 earnings at $7.42 EPS and FY2029 earnings at $7.85 EPS.

Procter & Gamble (NYSE:PG - Get Free Report) last posted its quarterly earnings results on Wednesday, July 29th. The company reported $1.43 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.41 by $0.02. The business had revenue of $21.20 billion for the quarter, compared to analyst estimates of $21.38 billion. Procter & Gamble had a net margin of 18.44% and a return on equity of 31.36%. The firm's revenue for the quarter was up 1.5% on a year-over-year basis. During the same quarter last year, the business posted $1.48 EPS. Procter & Gamble has set its FY 2027 guidance at 6.890-7.110 EPS.

A number of other research firms also recently weighed in on PG. BMO Capital Markets raised their price target on shares of Procter & Gamble from $169.00 to $170.00 and gave the company an "outperform" rating in a research note on Monday, June 29th. Wells Fargo & Company upped their price objective on shares of Procter & Gamble from $158.00 to $164.00 and gave the stock an "overweight" rating in a research report on Monday, April 27th. Deutsche Bank Aktiengesellschaft reissued a "buy" rating and issued a $163.00 price objective on shares of Procter & Gamble in a research note on Monday, April 27th. HSBC reaffirmed a "hold" rating and set a $149.00 target price (down from $182.00) on shares of Procter & Gamble in a research note on Thursday, July 30th. Finally, Piper Sandler upped their price target on shares of Procter & Gamble from $142.00 to $145.00 and gave the stock a "neutral" rating in a report on Friday, April 24th. Thirteen equities research analysts have rated the stock with a Buy rating and eleven have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average price target of $161.52.

Procter & Gamble Price Performance

Procter & Gamble stock opened at $144.08 on Thursday. The company has a debt-to-equity ratio of 0.43, a quick ratio of 0.47 and a current ratio of 0.68. Procter & Gamble has a 52 week low of $137.62 and a 52 week high of $167.25. The stock has a market capitalization of $334.90 billion, a P/E ratio of 21.76, a price-to-earnings-growth ratio of 4.47 and a beta of 0.39. The stock has a fifty day moving average of $148.14 and a 200-day moving average of $148.96.

Institutional Investors Weigh In On Procter & Gamble

Several hedge funds have recently added to or reduced their stakes in PG. Brighton Jones LLC increased its stake in shares of Procter & Gamble by 51.5% in the fourth quarter. Brighton Jones LLC now owns 40,068 shares of the company's stock valued at $6,717,000 after buying an additional 13,617 shares during the period. Taylor Financial Group Inc. boosted its holdings in Procter & Gamble by 10.6% in the first quarter. Taylor Financial Group Inc. now owns 2,891 shares of the company's stock valued at $493,000 after acquiring an additional 277 shares during the last quarter. Sivia Capital Partners LLC increased its position in Procter & Gamble by 19.8% during the 2nd quarter. Sivia Capital Partners LLC now owns 6,144 shares of the company's stock valued at $979,000 after purchasing an additional 1,016 shares during the period. Auxano Advisors LLC increased its position in Procter & Gamble by 10.8% during the 2nd quarter. Auxano Advisors LLC now owns 7,315 shares of the company's stock valued at $1,165,000 after purchasing an additional 714 shares during the period. Finally, Schnieders Capital Management LLC. raised its holdings in Procter & Gamble by 2.8% during the 2nd quarter. Schnieders Capital Management LLC. now owns 30,182 shares of the company's stock worth $4,809,000 after purchasing an additional 809 shares during the last quarter. 65.77% of the stock is currently owned by institutional investors and hedge funds.

Procter & Gamble Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Monday, August 17th. Stockholders 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 dividend yield of 3.0%. Procter & Gamble's dividend payout ratio is currently 65.71%.

Procter & Gamble News Summary

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

• Positive Sentiment: PG continues to attract income-focused investors because it is a Dividend King with roughly seven decades of consecutive dividend increases. Its everyday-consumer-products portfolio, including beauty products, is viewed as relatively defensive during market uncertainty. All It Takes Is $17,000 Invested in This High-Yield Dividend King Stock to Generate Over $500 in Yearly Dividends
• Positive Sentiment: Zacks Research still projects earnings growth over the longer term, including estimated fiscal 2029 EPS of $7.85, compared with the current full-year consensus of $6.99. Erste Group Bank likewise expects fiscal 2028 EPS of $7.42. Erste Group Bank Has Bearish Forecast for PG FY2027 Earnings
• Neutral Sentiment: Zacks’ revisions were mixed: estimates increased slightly for fiscal 2027 third- and fourth-quarter EPS, but the firm reduced its fiscal 2027 total estimate to $6.97 from $7.05. Fiscal 2028 EPS was cut to $7.42 from $7.47, while the current-year consensus remains $6.99.
• Negative Sentiment: Zacks lowered estimates for fiscal 2027 first- and second-quarter EPS and reduced fiscal 2028 first-, second- and fourth-quarter forecasts. The cuts suggest analysts expect near-term growth to be softer than previously anticipated. Procter & Gamble stock information
• Negative Sentiment: Rising gasoline prices may pressure household budgets, potentially encouraging consumers to trade down or delay purchases of branded products. That risk could weigh on PG’s sales growth and margins. Why is Procter & Gamble in focus as gasoline prices pressure consumers?

Procter & Gamble Company Profile

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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