P&G’s strategic acquisitions and divestitures will help
solidify the product lineup and prove beneficial to results. Earlier this
month, the company announced plans to acquire the female body care company
Billie Inc.
P&G is also likely to benefit from its cost reduction
efforts as well as lower commodity costs which could drive margins. However,
adverse currency impacts are likely to dampen the quarterly results.
In the first quarter of 2020, P&G beat consensus estimates for both revenue and earnings. Revenue increased 7% to $17.7 billion while core EPS was $1.37.
Last quarter, Procter
& Gamble raised the outlook for fiscal 2020 all-in sales growth from 3-4%
to 3-5% growth. The company also raised its guidance range on fiscal 2020
all-in GAAP EPS growth to 225-243%. The range for core EPS growth was raised to
5-10% from the prior range of 4-9%.
P&G’s shares have gained 37% in the past one year. The majority of analysts have rated the stock as Buy with the remaining giving it a rating of Hold. The stock has an average price target of $130.30.