|Bid||45.93 x 2000|
|Ask||52.12 x 100|
|Day's Range||45.79 - 48.39|
|52 Week Range||43.21 - 54.18|
|PE Ratio (TTM)||15.81|
|Earnings Date||May 3, 2018|
|Forward Dividend & Yield||0.87 (1.74%)|
|1y Target Est||50.72|
Procter and Gamble (PG) saw improved sales and earnings performance in fiscal 3Q18. The company’s top and bottom line surpassed analysts’ expectations. However, the company’s soft organic sales growth rate and sluggish margins due to lower pricing and increased costs didn’t sit well with analysts.
Procter & Gamble (PG) reported net sales of $16.3 billion, a rise of 4.3% YoY (year-over-year), which exceeded analysts’ expectations. As expected, Procter & Gamble’s top line benefitted from improved volumes and favorable currency rates. Also, the improved mix contributed 1% to the net sales growth rate.
Procter & Gamble (PG) reported weak sales and earnings growth in fiscal 3Q18 (period ended March 31, 2018) on April 19, 2018. The company’s stock fell 4.2% after the release and closed at $74.95. Procter & Gamble’s soft organic sales and tepid margin performance sent the stocks of other major CPG (consumer packaged goods) companies down as investors fear that price competition, business reinvestment needs, and inflation in commodities and transportation costs are likely to dent the financials of these companies.
Most of the analysts covering Colgate-Palmolive (CL) have maintained “hold” ratings on its stock as a soft sales environment, a moderating category growth rate, increased competition, and margin headwinds have kept them on the sidelines.
As for Colgate-Palmolive (CL), the company’s profit margins are likely to be adversely impacted by inflation in commodity prices, including resins and pulp. Higher logistics costs and increased advertising spending to support new product launches and drive market share are also expected to hurt its margins. Higher volumes, a focus on productivity savings, and SKU optimization are likely to support its margins.
Analysts expect Colgate-Palmolive (CL) to report sales of $4.0 billion in 1Q18, which represents a YoY (year-over-year) rise of 6.6%. The graph above shows that Colgate-Palmolive’s sales are showing an improving trend thanks to favorable currency rates and improvements in its volumes. Colgate-Palmolive’s top line is likely to benefit from improvements in volumes driven by new product launches in the oral and personal care segments backed by increased investments in advertising.
Colgate-Palmolive’s (CL) earnings have remained flat over the past two quarters as benefits from currency tailwinds, improved volumes, and cost savings have been offset by higher raw material and packaging costs, lower pricing, and advertising spending. What could drive Colgate-Palmolive’s 1Q18 EPS? Colgate-Palmolive’s bottom line is expected to benefit from an improvement in its volumes.
Kimberly-Clark (KMB) is expected to sustain its sales momentum in 1Q18, thanks to anticipated growth in volumes. Moreover, the company’s bottom line is projected to benefit from cost savings and a lower tax rate. However, most analysts prefer to maintain a “hold” rating on Kimberly-Clark stock, given the soft sales environment and near-term margin headwinds.
Kimberly-Clark (KMB) stock is trading at a forward PE (price-to-earnings) multiple of 15.2x, which is about 26% lower than the peer group average of 20.6x. Moreover, the company’s valuation multiple is also lower than the S&P 500 Index (SPY), which is trading at a forward PE ratio of 17.1x as of April 12.
Kimberly-Clark’s (KMB) profit margins are expected to remain muted, given the headwinds stemming from lower net selling prices and inflation in commodities and transportation costs. Kimberly-Clark’s promotional spending, as a result of soft product demand and increased competitive activity, is resulting in lower net selling prices. In turn, lower prices are affecting margins.
Kimberly-Clark’s (KMB) top line has been affected by lower pricing in the United States amid increased competition and a moderating category growth rate. Despite challenges, analysts expect Kimberly-Clark to sustain its sales momentum in 1Q18, led by improvements in volumes. Kimberly-Clark’s top line is expected to benefit from improvement in volumes, primarily in the personal care segment, led by gains from its joint venture in India.
Kimberly-Clark (KMB) is expected to announce its 1Q18 earnings on April 23. Analysts expect Kimberly-Clark to report adjusted earnings of $1.71 per share, which reflects YoY (year-over-year) growth of 8.9%. Improved sales and increased cost savings are expected to support Kimberly-Clark’s earnings growth.
Kimberly-Clark (KMB) is expected to announce its 1Q18 results on April 23. Analysts expect the company’s sales to sustain their momentum, led by improvements in volumes. Innovation-led products and brand investments are expected to support sales. Moreover, gains from the India joint venture should further drive net sales growth. However, lower net selling prices—due to promotional spending amid increased competition—are likely to remain a drag.
We expect Church & Dwight's (CHD) strategic efforts like focus on buyouts to help offset the hurdles and fuel further growth at the company.
Procter & Gamble (PG) continues to be one of the most consumer-friendly stocks. The company has a long history of enhancing shareholders’ returns through higher dividends and share buybacks. During the first half of fiscal 2018, Procter & Gamble returned close to $8 billion in the form of dividends and share repurchases.
Church & Dwight Co., Inc. will host a conference call to discuss first quarter 2018 earnings results on May 3, 2018 at 10:00 a.m. Eastern time.
The last change in the short interest score occurred more than 1 month ago and implies that there has been little change in sentiment among investors who seek to profit from falling equity prices. Over the last one-month, outflows of investor capital in ETFs holding CHD totaled $2.01 billion.
In 4Q17, organic sales in Church & Dwight's (CHD) international segment jumped 5.8%, courtesy of higher volumes. Further, overall international sales surged 33.3%.
The last change in the short interest score occurred more than 1 month ago and implies that there has been little change in sentiment among investors who seek to profit from falling equity prices. Index (PMI) data, output in the Basic Materials sector is rising.
NEW YORK, March 09, 2018-- In new independent research reports released early this morning, Fundamental Markets released its latest key findings for all current investors, traders, and shareholders of ...
Church & Dwight Company (CHD) reported earnings 30 days ago. What's next for the stock? We take a look at earnings estimates for some clues.
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