Procter & Gamble Co. (NYSE:PG) is set to release its Q1 earnings on Wednesday, with FactSet and Estimize forecasting an EPS of $1.72 and $1.74, and revenue of $21.580 billion and $21.761 billion, respectively. Despite a 4% drop this year, the company’s stock has seen a year-over-year increase of 14%.
Amidst a high inflation environment, CEO Jon Moeller hinted at possible further price increases, a strategy that has been instrumental in driving top-line growth in 48 of the past 51 quarters. This approach is linked to P&G’s robust innovation pipeline.
However, market pressures such as rising oil prices, forex moves, China’s volatile recovery, and hostilities in the Middle East are raising questions about the company’s ability to maintain its EPS guidance of $6.25-$6.43.
UBS analysts suggest that strong performance in U.S. and European markets could potentially offset these pressures. The views of analysts on FactSet are mixed; out of 18 analysts offering ratings, 10 recommend buying the stock, seven suggest holding it, and one advises selling.
