U.S. Markets closed
  • S&P Futures

    4,260.25
    +5.50 (+0.13%)
     
  • Dow Futures

    34,395.00
    +14.00 (+0.04%)
     
  • Nasdaq Futures

    14,144.25
    +19.50 (+0.14%)
     
  • Russell 2000 Futures

    2,324.90
    +1.30 (+0.06%)
     
  • Crude Oil

    71.25
    +0.37 (+0.52%)
     
  • Gold

    1,860.70
    -5.20 (-0.28%)
     
  • Silver

    27.72
    -0.32 (-1.16%)
     
  • EUR/USD

    1.2120
    -0.0003 (-0.0242%)
     
  • 10-Yr Bond

    1.5010
    +0.0390 (+2.67%)
     
  • Vix

    16.39
    +0.74 (+4.73%)
     
  • GBP/USD

    1.4102
    -0.0006 (-0.0423%)
     
  • USD/JPY

    110.1120
    +0.0510 (+0.0463%)
     
  • BTC-USD

    40,075.48
    +900.34 (+2.30%)
     
  • CMC Crypto 200

    1,002.81
    +33.97 (+3.51%)
     
  • FTSE 100

    7,146.68
    +12.62 (+0.18%)
     
  • Nikkei 225

    29,415.40
    +253.60 (+0.87%)
     

Factors That Hold Key to Procter & Gamble's (PG) Q3 Earnings

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
·4 min read
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

The Procter & Gamble Company PG is set to report third-quarter fiscal 2021 results on Apr 20, before the opening bell. This leading branded consumer products company is likely to have witnessed revenue and earnings growth in the to-be-reported quarter. The Zacks Consensus Estimate for the company’s fiscal third-quarter earnings stands at $1.19 per share, indicating a 1.7% increase from the year-ago quarter’s reported figure. The consensus mark has remained stable in the past 30 days. For fiscal third-quarter revenues, the consensus mark is pegged at $17.8 billion, suggesting 3.6% growth from the prior-year quarter’s reported figure.

In the last reported quarter, the company delivered an earnings surprise of 8.6%. Moreover, its bottom line beat estimates by 10.5%, on average, over the trailing four quarters.

Key Factors to Note

Procter & Gamble has been gaining from strong demand for daily health, hygiene and cleaning products, including hand sanitizers, soaps, toilet paper, surface cleaners, disinfecting wipes, and other essentials. This continued demand momentum is reflected by the underlying strength in brands and appropriate strategies, which have been aiding organic sales growth. Moreover, growth of premium home, health and hygiene products along with strength in the North American business mainly due to an increase in the pandemic-led consumption and inventory has been the reason behind the company’s positive mix. Such endeavors are likely to have aided revenues in the to-be-reported quarter.

Apart from these, Procter & Gamble has been focused on productivity and cost-saving plans to boost margins. Continued investments in business alongside efforts to offset macro cost headwinds and balance top and bottom-line growth underscore its productivity efforts. It has been witnessing cost savings and efficiency improvements across all facets of the business, driven by its second five-year productivity program. Moreover, gains from productivity savings and pricing have been aiding its margins and the trend is likely to have continued in the fiscal third quarter.

Despite such upsides, the adverse impacts of currency fluctuations on the company’s top and bottom lines remain concerning. Moreover, core earnings per share are expected to have been impacted by higher freight costs and the combined impact of rising interest expenses and reduced interest income.

Procter & Gamble Company The Price and EPS Surprise

Procter & Gamble Company The Price and EPS Surprise
Procter & Gamble Company The Price and EPS Surprise

Procter & Gamble Company The price-eps-surprise | Procter & Gamble Company The Quote

Zacks Model

Our proven model doesn’t conclusively predict an earnings beat for Procter & Gamble this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Procter & Gamble has a Zacks Rank #4 (Sell) and an Earnings ESP of 0.00%.

Stocks Poised to Beat Earnings Estimates

Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season:

Sanderson Farms, Inc. SAFM has an Earnings ESP of +3.13% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Mondelez International MDLZ has an Earnings ESP of +2.29% and a Zacks Rank #3, at present.

Nomad Foods Limited NOMD currently has an Earnings ESP of +0.73% and a Zacks Rank #3.

Breakout Biotech Stocks with Triple-Digit Profit Potential

The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.

Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.

See these 7 breakthrough stocks now>>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Procter & Gamble Company The (PG) : Free Stock Analysis Report

Sanderson Farms, Inc. (SAFM) : Free Stock Analysis Report

Nomad Foods Limited (NOMD) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research