Organic
sales growth and a lower effective tax rate are likely to help the top and
bottom line numbers in the fourth quarter. However, higher costs and negative currency
impacts could dampen the quarterly results.
In the third quarter of 2019, P&G topped market expectations on revenue and earnings, with a 1% growth in net sales and a 6% increase in adjusted EPS. Organic sales rose 5%, driven by a 2% increase in organic shipment volume. Sales grew across all its segments, with the exception of grooming and baby care.
For fiscal-year
2019, P&G has guided for total sales to be flat to up 1% versus 2018. Organic
sales is expected to grow 4%. GAAP
EPS is expected to increase 17-24% versus last year while core EPS is expected
to grow 3-8%.
In the trailing 52 weeks, P&G’s shares have gained 43%. Year-to-date, the stock has risen 25%. The majority of analysts have rated the stock a Buy while none have rated it Sell. TipRanks has given the stock an average price target of $115.25.