Daniel Foelber, The Motley Fool
Tue, Apr 29, 2025, 4:05 AM 6 min read
In This Article:
Procter & Gamble (NYSE: PG) has established a estimation for delivering dependable results and dividend growth, careless of the economical cycle. In fact, P&G is truthful accordant that it has raised its dividend for 69 consecutive years, an extended streak that puts it astatine the apical of an elite database of companies known arsenic Dividend Kings.
But the shaper of laundry detergents, crockery soap, insubstantial towels, razors, and much slipped 3.7% connected April 24 successful effect to its third-quarter fiscal 2025 net report. Let's dive into cardinal takeaways from the study to spot if the sell-off successful P&G is justified, oregon if it's an fantabulous bargain now.
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When P&G reported second-quarter fiscal 2025 results successful January, it was guiding for full-year income maturation of 2% to 4%, diluted nett net per stock (EPS) maturation of 10% to 12%, halfway EPS maturation of 5% to 7%, $10 cardinal successful fiscal twelvemonth dividend payments, and $6 cardinal to $7 cardinal successful banal buybacks.
But P&G's latest quarterly results were weak, with a 1% diminution successful volumes, conscionable a 1% summation successful price, and a 2% wide diminution successful nett sales.
P&G is maintaining its full-year income maturation and superior instrumentality targets, but has revised its EPS guidance downward. It present expects diluted EPS maturation of 6% to 8% and halfway EPS maturation of 2% to 4%.
With conscionable 1 4th near to spell successful P&G's fiscal year, a chopped to full-year guidance fundamentally means the anemic results won't beryllium made up for successful the coming quarter.
P&G has an impeccable way grounds of passing higher input costs connected to customers done terms increases. This strategy allowed P&G to steadily turn net contempt ostentation and proviso concatenation disruptions successful caller years. P&G is inactive delivering decent results, but it is intelligibly hitting a spot of a roadblock.
On the net call, absorption didn't shy distant from detailing pressures connected consumers. P&G CFO Andre Schulten said the pursuing successful effect to an expert question:
The user has been deed with a batch of volatility, marketplace volatility, that impacts their portfolios, their 401(k)s, volatility successful the economical outlook, uncertainty connected the occupation market, volatility successful presumption of owe rates expectations, each the divisiveness and nationalistic rhetoric that we saw astir the world, uncertainty connected tariffs and the interaction connected prices and availability of goods. So, I mean, the user has been deed with a lot, and that's a batch to process. So what we're seeing, I think, is simply a logical effect from the user to pause. And that intermission is reflected successful retail postulation being down.