Bottles of Tide detergent, a Procter & Gamble product, are displayed for sale in a pharmacy on July 30, 2020 in Los Angeles, California.
Mario Tama | Getty Images
Procter & Gamble is expected to report fiscal first-quarter earnings before the bell Tuesday.
Here’s what analysts surveyed by Refinitiv are expecting:
- Earnings per share: $1.59 expected
- Revenue: $19.91 billion expected
Investors will be focusing on how P&G is handling higher costs and supply chain challenges. This is the first quarter that the company will start to see the impact of price hikes on some of its products, like Pampers diapers, to fight higher commodity and transportation costs. Last quarter, the company said it was expecting inflation to hit its fiscal 2022 earnings by roughly $1.9 billion.
Snarls in the supply chain are also weighing on the broader consumer packaged goods industry, but analysts express confidence that P&G’s size can help it weather any problems. However, analysts are forecasting that P&G will keep a conservative outlook for fiscal 2022 because of uncertainty created by the supply chain issues and inflation.
Wall Street is expecting earnings per share growth of 5% and revenue growth of 3.7%, according to Refinitiv estimates. Last quarter, P&G called for fiscal year sales to grow 2% to 4% from the prior year and core earnings per share to increase by 3% to 6%.
This also marks the company’s last quarterly report with David Taylor as chief executive. P&G has named Jon Moeller, who most recently served as chief operating officer, as his successor, starting Nov. 1. Moeller has worked for the company since 1988. Shailesh Jejurikar, who served as CEO of P&G’s fabric and home care unit, replaced Moeller as COO earlier this month.
Shares of P&G have risen about 2% this year, bringing its market value to $345.65 billion.