Procter & Gamble (PG, $142.62) posts fall in quarterly earnings amid slump in sales volume
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 sees MACD Histogram just turned negative
PG saw its Moving Average Convergence Divergence Histogram (MACD) turn negative on May 04, 2023. This is a bearish signal that suggests the stock could decline going forward. Tickeron's A.I.dvisor looked at 47 instances where the indicator turned negative. In of the 47 cases the stock moved lower in the days that followed. This puts the odds of a downward move at .
Technical Analysis (Indicators)
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on May 05, 2023. You may want to consider selling the stock, shorting the stock, or exploring put options on PG as a result. In of 87 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
PG moved below its 50-day moving average on May 22, 2023 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for PG crossed bearishly below the 50-day moving average on May 26, 2023. This indicates that the trend has shifted lower and could be considered a sell signal. In of 15 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
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 .
The Aroon Indicator for PG entered a downward trend on May 31, 2023. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Bullish Trend Analysis
The RSI Indicator shows that the ticker has stayed in the oversold zone for 6 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an Uptrend is expected.
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 6 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where PG advanced for three days, in of 360 cases, the price rose further within the following month. The odds of a continued upward trend are .
PG may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Fundamental Analysis (Ratings)
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 81, 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 (7.576) is normal, around the industry mean (68.868). P/E Ratio (24.752) is within average values for comparable stocks, (183.506). Projected Growth (PEG Ratio) (3.952) is also within normal values, averaging (7.227). Dividend Yield (0.026) settles around the average of (0.028) among similar stocks. P/S Ratio (4.392) is also within normal values, averaging (70.361).
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to average 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 Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. PG’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
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Industry description
Market Cap
High and low price notable news
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Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
General Information
a provider of branded consumer packaged goods
Industry HouseholdPersonalCare
PG and
Correlation & Price change
A.I.dvisor indicates that over the last year, PG has been closely correlated with CL. These tickers have moved in lockstep 79% of the time. This A.I.-generated data suggests there is a high statistical probability that if PG jumps, then CL could also see price increases.
