Procter & Gamble (NYSE:PG) is scheduled to announce first-quarter earnings results on October 24, before market open. Analysts at RBC Capital Markets expect the company to have a slow start to the fiscal year, with Q1 coming in toward the lower end of PG’s annual guidance.
The consensus EPS estimate is $1.90, which is a 1.6% rise compared to the same quarter last year, while the consensus revenue estimate is $22.17 billion, translating to a 2% year-on-year rise.
Over the last 3 months, EPS estimates have seen 13 downward revisions while revenue estimates have seen 2 upward revisions and 7 downward moves.
Citing an industry conference in early September, RBC Capital Markets said it expects the company to have a steady quarter but noted that growth has remained slow since then.
Analysts led by Nik Modi said that the consumer goods giant currently sees global market growth stable in the 2-2.5% range, slower than in the past year but within expectations. North America is in the 2-3% range with signs of stabilisation, while they see Europe flattening out. In China, conditions remain difficult, though management said its strategies are “moving into a positive trajectory.”
Management described market growth, tariffs, commodities, and foreign exchange as “not great but stable,” adding that their top priority is to reignite global market growth, RBS additionally noted.
The brokerage sees the conglomerate reiterating its annual guidance, but is likely to remain towards the mid to low point of ranges.
“We see the US growth trajectory as the biggest swing factor with PG currently trending in the 1.5-2.5% range. Internationally (excluding China), we would expect modest (lower-single-digit to middle-single-digit percentage) growth with sequentially improving trends in China. PG’s global aggregate share trends have slowed, and we would expect continued reinvestment to support areas where share has softened,” RBC said.
Over the last 2 years, PG has beaten EPS estimates 100% of the time and has beaten revenue estimates 38% of the time.