Procter & Gamble (P&G) is expected to announce per-share earnings of $1.72, representing a significant increase from the previous year's $1.57 figure, according to analysts polled by FactSet. However, Estimize, which aggregates estimates from various sources, including buy and sell-side analysts, academics, and students, is slightly more optimistic, predicting earnings per share of $1.74.


The projected revenue for the fiscal first quarter is $21.580 billion, compared to $20.612 billion in the same period last year, as reported by FactSet analysts. Estimize anticipates revenue to be higher at $21.761 billion.

Stock Movement

Although P&G's stock has experienced a 4% decline year-to-date, the broader market, represented by the S&P 500 index, has gained 13.7%. However, P&G's stock has still managed a respectable 14% increase over the past 12 months, while the S&P 500 has gained 18.7%.

Among the 18 analysts who rate the stock on FactSet, 10 consider it a buy, seven rate it as hold, and one analyst has assigned an underweight (sell) rating.

Key Factors to Monitor

Pricing Strategy

Investors will be closely watching whether P&G continues its trend of raising prices, especially in the face of heightened inflationary pressures. During the fiscal fourth-quarter call with analysts, Chief Executive Jon Moeller suggested that raising prices was highly likely for P&G.

Pricing and Innovation Drive Growth

According to a FactSet transcript, pricing plays a crucial role in driving innovation and growth for the company. In fact, historical data reveals that pricing has positively contributed to the company's top-line growth for an impressive 48 out of the last 51 quarters. As the company further strengthens its innovation program, it is set to capitalize on even more opportunities and continue benefiting from modest pricing.

Factors Impacting the Company's Guidance

There are several factors that will influence whether the company sticks with its previous guidance. Recent developments, such as unfavorable forex moves, rising oil costs, and a volatile China recovery, have created additional challenges. Furthermore, the recent hostilities in the Middle East have added further uncertainty to the situation.

Maintaining EPS Guidance Range

Despite these challenges, UBS analysts believe that the company is likely to maintain its EPS guidance range of $6.25-$6.43. This is supported by scanner data, which suggests that the company's underlying performance in both the U.S. and Europe remains solid. The analysts anticipate that this strong performance will more than offset the pressures posed by external factors.

UBS maintains a buy rating on the stock, highlighting their confidence in its future prospects.

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