The Proctor & Gamble Company ($PG) Earnings (Q1 FY23)

 The Proctor & Gamble ($PG) Earnings and Opinion


Proctor and Gamble is a company in the Consumer Defensive sector and operates in the Household & Personal Products industry. The company provides branded consumer packaged goods worldwide. Proctor & Gamble was founded in 1837 and is currently headquartered in Cincinnati, Ohio. The company made its debut on the stock market in 1978.

Proctor & Gamble Earnings Results:

  • Revenue of $20.61B beating expectations of $20.34B
  • Adj Diluted EPS of $1.57 beating expectations of $1.55
Opinion:
Proctor and Gamble is currently moving a slight bit higher in todays trading session. The company reported earnings before the market opened this morning. There wasn't much behind this earnings report, which is the main reason for the lack of direction in the trading session. One credit to the gain has to be the tweak of the view on EPS. They expect it to be pretty flat, compared to the 4% expectation given earlier. The revenue rose in the quarter, but it was also on lower volume. These means that consumers paid a higher price for the products. Charging more for their products allowed the company to make more money and offset the rising expenses. A strong dollar has been credited to the decrease in international profit. Diving deeper into the earnings report, the Organic Revenue growth saw solid beats in all categories, except the Health Care segment. Segment Revenue also showed some solid beats, but the Grooming segment saw a miss compared to expectations. As far as valuation goes, EV/EBITDA was at 15.97, which is a bit higher than the 13.94 median. The P/E ratio is at 22.71, which is a tiny bit higher than peers. Relatively, the valuation is at pretty fair value. In my opinion, Proctor and Gamble should be a company in your portfolio for foundation. The company has so many subsidiaries and makes a lot of money of of products that can be considered "inelastic". If you don't have them in your portfolio yet, now may be a good time to add them. They are near fair value, but may see a dip in the near-term with earnings expected to come in at the bottom side of guidance. I am long Proctor & Gamble $PG.


*information from Bloomberg and Yahoo Finance

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