View of Dawn Dish Soap Liquid at Stop & Shop Supermarket.
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Procter & Gamble will release the fourth quarter results before the market opens on Friday.
Here’s what Wall Street expects based on an analyst survey by Refinitiv:
- Earnings per share: $ 1.08, adjusted
- Revenue: $ 18.41 billion
P&G announced Thursday evening that current Chief Operating Officer Jon Moeller will become CEO in November, replacing David Taylor, who will take over as Executive Chairman of the company’s board of directors. Taylor, 62, was CEO since November 1, 2015.
Last quarter, P & G’s earnings and revenue exceeded analyst estimates as consumers clung to pandemic buying trends such as detergent stocks. People also started buying beauty products again.
The company, whose portfolio includes Tide laundry detergents, Charmin toilet paper and Pampers diapers, is well on its way to raising prices on some products this fall in response to higher raw material costs. Rival Kimberly-Clark, who makes Huggies, has also announced price increases for various items.
After the price increases go into effect, P&G plans to maintain market share by trying to increase consumer perception of the value of its products and by introducing new or improved items. Companies like P&G and Kimberly-Clark are betting that consumers will be willing to pay more for the branded version rather than opting for a cheaper private label.
In its most recent guidance for fiscal 2020, P&G expected revenue growth of 5% to 6% and adjusted earnings growth of 8% to 10%. But the company has also absorbed higher raw material and transportation costs, which could weigh on earnings.
The P&G share has risen less than 1% since the beginning of the year. The company has a market capitalization of $ 341.4 billion.
– Amelia Lucas from CNBC contributed to this coverage.
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