Consumer goods giant reports mixed Q4 results

  • Procter & Gamble’s stock slumps after reporting a surprise decline in sales despite beating profit expectations
  • Core EPS of $1.40 surpasses FactSet consensus of $1.37
  • Net sales drop to $2.53 billion from $20.55 billion, missing FactSet’s expected $20.72 billion
  • Growth in grooming, health care and fabric and home care products offset weakness in beauty and baby, feminine and family care
  • Fiscal 2025 core EPS forecast at $691 to $7.05, below FactSet’s $6.97 consensus
  • Sales growth expected between 2% to 4%, lower than the current FactSet consensus of 3.4%

Procter & Gamble Co.’s stock fell 2.9% in premarket trading after the company reported a decline in sales for its fiscal fourth quarter, despite beating profit expectations. Net income dropped to $3.14 billion from $3.38 billion a year ago, while core EPS of $1.40 surpassed the FactSet consensus of $1.37. However, net sales slipped 0.1% to $2.53 billion, missing the expected $20.72 billion. The company’s growth in grooming, health care, and fabric and home care products was not enough to offset weakness in beauty, baby, and family care categories. For fiscal 2025, P&G expects core EPS of $691 to $7.05, below the FactSet consensus of $6.97, and sales growth between 2% to 4%, lower than the current 3.4% consensus.

Factuality Level: 7
Factuality Justification: The article provides accurate information about Procter & Gamble’s financial performance, including specific numbers and comparisons to expectations and previous periods. It also includes the company’s outlook for future growth. However, it lacks context or analysis of the reasons behind the decline in sales and does not discuss broader industry trends or potential impacts on investors.
Noise Level: 3
Noise Justification: The article provides relevant financial information about Procter & Gamble’s fiscal fourth-quarter results and outlook for the future, but it lacks in-depth analysis or contextualization of the company’s performance within the broader market trends or industry developments. It also does not offer any actionable insights or new knowledge beyond reporting the numbers.
Public Companies: Procter & Gamble Co. (PG), Consumer Staples Select Sector SPDR ETF (XLP), S&P 500 index (SPX)
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Financial Relevance: Yes
Financial Markets Impacted: Procter & Gamble Co.’s stock
Financial Rating Justification: The article discusses the financial performance of Procter & Gamble Co., including their profit, core earnings per share, net sales, and expectations for future growth. This information is relevant to investors and can impact the company’s stock price in financial markets.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the article.

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