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A Preview Of Procter & Gamble's Earnings


Procter & Gamble (NYSE:PG) announces its next round of earnings this Wednesday, January 20. Here is Benzinga's everything-that-matters guide for this Wednesday's Q2 earnings announcement.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

Analysts covering Procter & Gamble modeled for quarterly EPS of $1.51 on revenue of $19.28 billion. Procter & Gamble EPS in the same period a year ago totaled $1.42. Sales were $18.24 billion.

Why Analyst Estimates And Earnings Surprises Are Important

Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.

The analyst consensus estimate would represent a 6.34% increase in the company's earnings. Revenue would be up 5.7% from the same quarter last year. Here is how the Procter & Gamble's reported EPS has stacked up against analyst estimates in the past:

Quarter Q1 2020 Q4 2020 Q3 2020 Q2 2020
EPS Estimate 1.41 1.01 1.13 1.37
EPS Actual 1.63 1.16 1.17 1.42
Revenue Estimate 18.35 B 16.97 B 17.46 B 18.35 B
Revenue Actual 19.32 B 17.70 B 17.21 B 18.24 B

Stock Performance

Over the last 52-week period, shares are up 7.8%. Given that these returns are generally positive, long-term shareholders can relax going into this earnings release. Long-term shareholders are already enjoying 12-month gains prior to the announcement.

Do not be surprised to see the stock move on comments made during its conference call. Procter & Gamble is scheduled to hold the call at 08:30:00 ET and can be accessed here.


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Posted-In: BZI-EPEarnings