What To Expect From Procter & Gamble's (PG) Q2 Earnings

What To Expect From Procter & Gamble's (PG) Q2 Earnings

Consumer products behemoth Proctor & Gamble (NYSE:PG) will be announcing earnings results tomorrow before market hours. Here's what investors should know.

Procter & Gamble missed analysts' revenue expectations by 1.2% last quarter, reporting revenues of $20.2 billion, flat year on year. It was a mixed quarter for the company: Revenue unfortunately missed analysts' expectations on organic revenue that came in below Wall Street Consensus estimates. On the other hand, the company did beat EPS slightly and raised its full year EPS guidance to a level above expectations.

Is Procter & Gamble a buy or sell going into earnings? Read our full analysis here, it's free.

This quarter, analysts are expecting Procter & Gamble's revenue to be flat year on year at $20.74 billion, slowing from the 5.3% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.37 per share.

Procter & Gamble Total Revenue

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Procter & Gamble has missed Wall Street's revenue estimates twice over the last two years.

Looking at Procter & Gamble's peers in the household products segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Colgate-Palmolive delivered year-on-year revenue growth of 4.9%, beating analysts' expectations by 1.1%, and WD-40 reported revenues up 9.4%, topping estimates by 6.3%. WD-40 traded up 4% following the results.

Read our full analysis of Colgate-Palmolive's results here and WD-40's results here.

There has been positive sentiment among investors in the household products segment, with share prices up 3.6% on average over the last month. Procter & Gamble is up 4% during the same time and is heading into earnings with an average analyst price target of $174.7 (compared to the current share price of $169.2).

Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we’ve identified a relatively under-the-radar profitable growth stock benefitting from the rise of AI, available to you FREE via this link.