Earnings preview: What to look for when Procter & Gamble reports Q3 results

The Procter & Gamble Company (PG) is scheduled to report its earnings results for the third quarter of 2019 on April 23, before the market opens. The Street expects earnings to increase 4% year-over-year to $1.04 per share. Revenue is estimated to inch up slightly by 0.6% to $16.3 billion.

Looking at the past four quarters, P&G has consistently topped earnings estimates, which provides a sense of optimism. The changing trends in the retail industry have taken a toll on the company’s sales which are moving at a sluggish pace. However, its diverse product portfolio coupled with brand loyalty provide the consumer goods giant with an advantage in this environment.

P&G continues to face pressures from high costs and currency fluctuations. The company has been implementing several measures to improve its products and reduce costs and these efforts are likely to help margins. P&G’s performance could also see a benefit from the various strategic acquisitions it has made over the past couple of months.

For the second quarter of 2019, P&G reported better-than-expected earnings which were up 30% year-over-year. Net sales remained flat at $17.4 billion. The Beauty segment has shown momentum over the past two quarters while the weakness persists in Grooming.

For fiscal 2019, P&G expects organic sales to grow 2-4% and core earnings to increase 3-8%. GAAP diluted net EPS is expected to rise 17-24%.

P&G’s shares have rallied over 35% in the trailing 12-month period and the stock has gained over 16% so far this year.

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