Containers of Tide detergent on grocery store shelves.
Richard Levine | Corbis | Getty Images
Procter & Gamble is expected to report its fiscal first-quarter earnings before the bell on Wednesday.
Here’s what Wall Street analysts surveyed by Refinitiv are expecting:
- Earnings per share: $1.54 expected
- Revenue: $20.28 billion expected
In late July, the maker of Tide detergent, Charmin toilet paper and other consumer goods products said it expected higher costs to continue pressuring its profit margins in its new fiscal year. For its fiscal 2023, the company forecast headwinds of $3.3 billion from higher commodity and freight costs, as well as foreign exchange rates. P&G also said it expects earnings per share to be flat to up 4% from the prior fiscal year.
To mitigate rising costs, the company has been raising prices across its portfolio. But the strategy has been hurting consumer demand for its products. Shoppers have instead been reaching for cheaper alternatives as their budgets are pressured by inflation, with prices surging for everything from butter to airline tickets.
Higher prices, rather than demand, are expected to drive sales growth for P&G this year. In fiscal 2023, it expects to see organic sales growth of 3% to 5%.
Concerns about P&G’s pricing power, as well as Covid lockdowns in China, have weighed on the stock. Shares of the company have fallen 21% this year, dragging its market value down to $306.4 billion.
This story is developing. Please check back for updates.
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