Procter & Gamble (PG) is scheduled to report its earnings for the second quarter on Thursday, before market open.
Wall Street expects the consumer goods giant to post EPS of about $1.86, a 1.1% year‑on‑year decline, on revenue of roughly $22.29 billion, implying a 1.8% rise.
Procter & Gamble heads into its second quarter earnings after a volatile period marked by mixed sales signals and uneven investor sentiment. The company has flagged pressure on U.S. sales due to the temporary suspension of federal food assistance and broader economic headwinds, raising concerns about near-term demand in key household categories. Management has also warned that the government shutdown could exacerbate softness in domestic volumes during the quarter.
Jefferies recently named the company among its favorite household product stocks, citing restructuring tailwinds and innovation-led growth.
According to Seeking Alpha’s Quant rating system, PG is rated Hold, with a score of 3.23 out of 5, with grades of A+ in profitability, B+ in revisions, but offset by weaker grades of C in momentum, a D+ in growth, and a D- in valuation.
An analyst said Procter & Gamble remains a Hold and is still slightly overvalued despite being a high-quality business with a wide economic moat, adding, “In my opinion, Procter & Gamble is slightly overvalued right now, and with other companies in this market that are better valued, I have little reason to choose Procter & Gamble as an investment right now.”
Over the last two years, PG has beaten EPS estimates 100% of the time and has beaten revenue estimates 38% of the time.
In the past three months, EPS estimates have seen no upward revisions and 14 downward moves. Revenue estimates have seen no upward revisions and 11 downward revisions.