Procter & Gamble Co. posted lower quarterly profit, amidst higher prices dampening sales volumes. It is among the first consumer product behemoths to report December quarter results.
For the three months ended Dec. 31, the company reported net income of $3.9 billion, or $1.59 per share, excluding items, lower than $4.22 billion, or $1.66 per share, a year earlier. The EPS were in line with analysts’ expectations (based on Refinitiv data).
Net sales fell -1% year-over-year to $20.77 billion, exceeding analysts' forecast of $20.73 billion.
P&G’s sales volumes decreased -6% in the three months ended Dec. 31 —the biggest quarterly drop in years. Each of the company’s five major business units underwent lower sales volume compared with a year earlier. P&G increased prices by +10% in the period, leading to a +5% growth in organic sales (which exclude currency fluctuations and acquisitions).
The company’s quarterly results were in line with consensus forecasts, according to estimates compiled by FactSet.
The Wall Street Journal reported that P&G finance chief Andre Schulten said that the company had anticipated the volume decreases and attributed half of the decline to a combination of P&G ending sales of all but essential items in Russia and retailer inventory reductions in the U.S., Europe and in China.
P&G projects growth in the consumer-products market will continue but slow to 3% to 4% growth, from a 5% to 6% range. Pricing is expected to continue to drive growth, while volumes are anticipated to decrease further, according to the company.
PG saw its Momentum Indicator move above the 0 level on April 17, 2024. This is an indication that the stock could be shifting in to a new upward move. Traders may want to consider buying the stock or buying call options. Tickeron's A.I.dvisor looked at 90 similar instances where the indicator turned positive. In of the 90 cases, the stock moved higher in the following days. The odds of a move higher are at .
The Moving Average Convergence Divergence (MACD) for PG just turned positive on April 19, 2024. Looking at past instances where PG's MACD turned positive, the stock continued to rise in of 44 cases over the following month. The odds of a continued upward trend are .
PG moved above its 50-day moving average on April 22, 2024 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for PG crossed bullishly above the 50-day moving average on April 29, 2024. This indicates that the trend has shifted higher and could be considered a buy signal. In of 16 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where PG advanced for three days, in of 357 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 364 cases where PG Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
The RSI Indicator demonstrated that the stock has entered the overbought zone. This may point to a price pull-back soon.
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 7 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where PG declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
PG broke above its upper Bollinger Band on April 22, 2024. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 82, placing this stock better than average.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (7.918) is normal, around the industry mean (59.633). P/E Ratio (26.898) is within average values for comparable stocks, (196.255). Projected Growth (PEG Ratio) (3.395) is also within normal values, averaging (3.746). Dividend Yield (0.023) settles around the average of (0.106) among similar stocks. P/S Ratio (4.733) is also within normal values, averaging (118.390).
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. PG’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a provider of branded consumer packaged goods
Industry HouseholdPersonalCare