What to expect from Procter & Gamble’s Q1?

Procter & Gamble (NYSE: PG ) is scheduled to report its fiscal first quarter 2025 results on Friday, October 18 (P&G’s fiscal year ends in June). We expect the company to deliver upbeat results, with revenue of $22.1 billion and earnings of $1.92 per share, compared to consensus estimates of $21.96 billion and $1.90, respectively. While the company’s top line is expected to see low-single-digit growth, its bottom line is likely to increase in the mid-single digits, due to the impact of restructuring charges. Analysis of our interactive dashboard Procter & Gamble’s fiscal 2025 first quarter earnings preview has more details on how the company’s revenue and earnings are likely to trend during the quarter.

What Trends Will Drive P&G’s Q1 Results?

P&G should see slight sales growth thanks to modest volume gains. Its hairdressing business has performed relatively better than others of late, a trend that is likely to continue in the first quarter as well. Grooming will likely continue to drive up prices, while Baby Care sales may trend downward amid continued decline in market share.

The company is in the process of restructuring the market portfolio, which is expected to affect the overall margin profile. P&G expects to record a $750 million charge for accumulated currency translation losses in the first quarter. Still, its core earnings per share are expected to grow more than its sales, boosted by lower shares outstanding. P&G plans to spend $6 billion to $7 billion on share buybacks in fiscal 2025.

How did P&G perform last quarter?

Procter & Gamble revenue was flat at $20.5 billion in 4Q’24 as price gains of 1% and volume gains of 1% were offset by a 2% unfavorable impact of foreign exchange . In terms of segments, Grooming saw organic sales growth of 7%, while Health Care increased by 4%, Beauty by 3% and Fabric & Home Care by 2%. Baby, Feminine & Family Care experienced a 1% decline in sales on an organic basis. On the margin side, the company posted a 100 basis point drop in core operating margin to 19.3% in 4Q, primarily reflecting the impact of the currency translation rate and higher overhead. Despite a flat contraction in revenue and margin, P&G reported a slight gain on the bottom line to $1.40 from $1.37 in the year-ago quarter due to a decline of 0.5 % of the total shares in circulation.

What does this mean for PG stock?

PG stock is up 20% so far this year, broadly in line with gains in the S&P 500. Notably, PG stock’s annual returns over the past few years have been considerably less volatile than the S&P 500. Likewise, the Trefis High Quality Portfolio, a collection of 30 stocks, is less volatile. But, yes it beat the S&P 500 every year during the same period. Why is this? As a group, stocks in the HQ portfolio delivered better returns with less risk compared to the benchmark; less of a rollercoaster, as evident in the HQ portfolio performance metrics.

love Procter & Gamble Rating it will be $170 per share, close to its current market price. Our forecast is based on a P/E multiple of 24x for PG and expected earnings of $7.00 per share on an adjusted basis for the full fiscal year 2025. The 24x figure is in line with the stock’s average P/E multiple over the past four years.

While PG stock is priced right, it’s helpful to see how The colleagues of Procter & Gamble rate in metrics that matter. You will find other valuable comparisons for companies in different sectors at Peer comparisons.

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