P&G shares rose more than 5% after its fiscal 2027 first-quarter report showed organic sales up 4%, compared with 1% in the prior quarter, driven mainly by volume (2.4%) and mix (1.1%). The company kept its full-year organic sales guidance at 1%-3%, while core EPS rose 1% to $2.00 amid higher commodity costs and tariffs, and its adjusted EPS outlook of 0%-3% growth was reaffirmed. At about $165 a share, the stock trades near 23.5 times forward earnings, above the under-21 times level earlier this year but below its peak of more than 26x in late 2024. The author says the margin of safety is razor-thin after the rally: P&G remains a high-quality defensive dividend stock, but the risk is failing to return to mid-single-digit EPS growth, and waiting for a more favorable price may be preferable to buying after earnings.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on Yahoo Finance ↗
Keywords
Procter & Gambleearningsconsumer goodstariffs
Open a keyword to see other news on the same topic.
Related news
- PYMNTS | Procter & Gamble Sees Resilient Consumer Demand
Procter & Gamble's fiscal 2027 guidance now calls for organic sales growth of 1% to 3% and core EPS of 0% to 3%. The company expects a commodity cost headwind of $1.4 billion after tax, assuming an effective Brent crude price of $100 a barrel, with materially higher cost pressure in Q2 and the second half of fiscal 2027 due to the Middle East conflict. In the quarter ended Sept. 30, organic sales rose 4%, core EPS rose 1%, and net sales increased 4% to $23.3 billion, with organic growth in all 10 categories and six regions. CFO Andre Schulten said the consumer remains resilient, with value growth of 2.5% to 3% across categories globally, unchanged from last quarter. He said the company will closely watch demand as high fuel and energy costs persist into fall and winter.
- Beauty drives Procter & Gamble growth as group raises forecasts
- P & G ( PG ) Q1 2027 Earnings Call Transcript
Procter & Gamble reported first-quarter fiscal 2027 net sales of $23.3 billion, up 4.0%, with organic sales also up 4.0%, driven mainly by volume (2.4 points) and product mix (1.1 points). Core EPS rose 1% to $2.00, while core gross margin fell 150 basis points to 50.0% and core operating margin fell 80 basis points to 25.9%. Management estimates commodity cost headwinds of about $1.4 billion after tax for the year, assuming Brent crude at $100 a barrel for the rest of the fiscal year. Greater China organic sales grew 8.0%, and the company returned $2.6 billion in dividends and $1.3 billion through share repurchases in the quarter, with about $5 billion in buybacks planned for the full year.
- Procter & Gamble Earnings : Accelerating Sales Growth Evidences Prudence of Strategic Course
Morningstar says P&G's first-quarter organic sales rose 4.0%, with volume up 2.4% and pricing and mix adding 1.6%, but cost savings did not fully offset inflation, cutting adjusted gross margin 150 basis points to 49.8%. US sales grew 3% (versus a 1% decline in the fourth quarter) and China rose 8% (from 4%). Morningstar kept its $155 fair value estimate and wide-moat rating, and it views the roughly $4 billion Thorne HealthTech deal, under 1% of sales, as not signaling a push into consolidation, with cash returns still the priority. The firm expects more details on supply chain initiatives at P&G's Nov. 19 investor event. Shares rose more than 5% on Oct. 22.
- The Procter & Gamble Company Q1 2027 Earnings Call Summary
- Procter & Gamble Jumps 6% as Earnings Beat Draws Defensive Buyers; Johnson & Johnson Rises 3%, Coca-Cola Ticks Up
Procter & Gamble shares rose 6% to $166.19 in morning trading after its Q1 FY2027 results beat expectations, with core EPS of $2 versus the $1.89 consensus and net sales of $23.28 billion against $22.82 billion expected. CFO Andre Schulten said the U.S. consumer is “remarkably resilient,” though lower-income shoppers are more cautious. The company kept its full-year outlook of 1% to 3% organic sales growth and core EPS of $6.89 to $7.11. Core gross margin fell 150 basis points year over year, and the company expects $1.4 billion in after-tax commodity cost pressure this fiscal year. Johnson & Johnson rose 3% and Coca-Cola 2% as defensive stocks drew buyers, while the SPDR S&P 500 ETF Trust fell 1%.
Related markets
Latest news
- Why Comfort Systems Plunged Today
Comfort Systems (FIX) fell as much as 13.2% on Friday before trimming its decline to 8.9% by 3:10 p.m. EDT, despite beating revenue and earnings estimates for the quarter. Revenue rose 53.7% and EPS grew 68.6% to $13.91, while backlog climbed to $17.8 billion from $14.1 billion three months earlier. The article attributes the sell-off mainly to the announced year-end retirement of Bill George, a founder and longtime CFO, along with a "sell the news" reaction seen across AI-linked stocks this earnings season. Shares are about 38% below their June all-time high and trade at 19.4 times average 2027 analyst earnings estimates.
- Intel Stock Has Moved an Average of 16% the Day After Its Last 3 Reports. Should You Buy Before the Next One?
Intel reports third-quarter results after the close on Oct. 29, and its stock has moved an average of about 16% in the session after its last three reports: down 17% after January, up 24% after April, and down 8% after July. The company beat its own forecasts each time, yet shares fell twice because management's outlook for the coming months carried more weight. The third-quarter revenue midpoint of $16.3 billion is only about 1% above the second quarter, a sharp slowdown, so the fourth-quarter forecast is seen as the key number to watch. At around 44 times expected 2027 earnings, the author argues the share price already reflects a return to growth, and says he would not buy the stock before the report.
- SpaceX Filing Gives Elon Musk the Final Word on Tesla Merger He Says He’s Staying Out Of
SpaceX stated in an SEC filing that any merger with Tesla must be approved by its controlling shareholder, Elon Musk, who holds roughly 85% of voting power. Musk recused himself from both special committees but publicly endorsed the deal, which Reuters reported created a "mess" for the independent process. Both companies formed special committees on October 20 to evaluate a proposed deal that analysts estimate could create a combined entity worth around $3.5 trillion. REX Financial estimates Musk would hold roughly 57% of combined voting power. Tesla shareholders must clear a 50%-of-all-outstanding-shares threshold, with a vote expected at or near the December 3 annual meeting.
- SpaceX Filing Gives Elon Musk the Final Word on Tesla Merger He Says He’s Staying Out Of
SpaceX stated in an SEC filing that any merger with Tesla must be approved by its controlling shareholder, Elon Musk, who holds roughly 85% of voting power. Musk recused himself from both special committees but publicly endorsed the deal, which Reuters reported created a "mess" for the independent process. Both companies formed special committees on October 20 to evaluate a proposed deal that analysts estimate could create a combined entity worth around $3.5 trillion. REX Financial estimates Musk would hold roughly 57% of combined voting power. Tesla shareholders must clear a 50%-of-all-outstanding-shares threshold, with a vote expected at or near the December 3 annual meeting.
- Meta shares are down 9% this week. Here's why Mike Khouw is buying now
Meta shares fell during the week as investors worried about the cost of building AI infrastructure, even though the company recently reported strong earnings. The company's $1.65 trillion market cap lost $135 billion in four sessions. The author sees Muse, Meta's personal AI agent, as potentially valuable given its reach to 3.6 billion daily active users across Facebook, Instagram, WhatsApp and Messenger. Headwinds include a $25 billion lawsuit in New Mexico, a deal with the founder over potential California billionaire's tax liabilities, concerns about debt, and broader AI jitters. He argues the current valuation, at about 20x fiscal-year earnings, already prices in much of this. He outlines selling December strangles at the 580/745 strikes, collecting about $21.30 per share at today's closing prices, a position that profits anywhere between the one-year high and low.
- Robinhood Is Quietly Building 13 Businesses at Once. Here's Why It Matters.
By Q2 2026, Robinhood had 13 business lines each generating at least 100 million USD in annualized revenue, up from one in 2019 and nine in 2024. The author argues that adding products such as options, crypto, Gold subscriptions and credit cards lets the company earn more from each customer without customer acquisition costs. Robinhood ended Q2 with 28.4 million funded customers, up 7%, 4.8 million Gold subscribers, up 39%, and average revenue per user up 24% to 187 USD. Transaction revenue rose 44% to 776 million USD, alongside 389 million USD in net interest revenue and 143 million USD in other revenue, which reduces reliance on trading activity. The author cautions that annualized revenue is the quarter's revenue multiplied by four, so the 13 lines should not be treated as mature businesses each generating 100 million USD.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.