Procter & Gamble Earnings Are Up Next. Weak Consumer Spending Remains a Worry. — Barrons.com

Dow Jones Newswires

By George Glover and Alex Kozul-Wright

Procter & Gamble stock has struggled lately, with Wall Street worrying about a slowdown in spending that could weigh on demand for consumer goods. Shareholders likely are hoping an earnings report due out on Thursday morning can stop the rot.

Analysts are expecting the company, owner of the Head & Shoulders and Gillette brands, to report adjusted earnings of $1.86 a share for its fiscal second quarter, according to FactSet. The consensus forecast is that revenue will rise 1.9% from a year ago, to $22.30 billion.

Wall Street will also be focusing on whether P&G tweaks its full-year financial guidance for fiscal 2026. The company has said it expects earnings of $6.83 to $7.09 a share, while the analysts' consensus is for $6.96 a share.

CFO Andre Schulten gave the market a worrying update last month.

Packaged-goods sales fell significantly in October and were likely weak in November, he said at a Morgan Stanley investor conference, citing a nervous consumer, the federal government shutdown, and the temporary suspension of food aid.

Raymond James analyst Olivia Tong expects second-quarter organic sales to rise just 0.2% from a year ago due to "weaker consumption data in the U.S., exacerbated by the government shutdown." Still, she rates the stock at Outperform, with a target of $175 for the price that implies a 19% gain.

Earnings season for the consumer-goods industry has gotten off to a poor start. WD-40, the maker of lubricant oils, reported that revenue was flat from a year ago. The brewer Constellation Brands reported a 10% drop in sales.

That is a worrying sign for P&G, and the shares could do with a boost. The stock has dropped 12% over the past year amid worries about a slowdown in consumer spending that has crimped sales growth in the company's beauty and healthcare segments.

Write to George Glover at george.glover@dowjones.com and Alex Kozul-Wright at alexander.kozul-wright@barrons.com

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

Risk Warnings and Disclaimers

You understand and acknowledge that there is a high degree of risk involved in trading. Following any strategies or investment methods may lead to potential losses. The content on the site is provided by our contributors and analysts for information purposes only. You are solely responsible for determining whether any trading assets, securities, strategy, or any other product is suitable for investing based on your own investment objectives and financial situation.

Add to Favorites

P&G Expected to Report Lower 2Q Profit

Dow Jones Newswires

Procter & Gamble

+1.00%

By Nicholas G. Miller

Procter & Gamble is set to release second-quarter results on Thursday before the market opens. Here is what you need to know.

PROFIT: Analysts polled by FactSet expect the company to report net income of $4.46 billion, down from $4.63 billion the year before.

ADJUSTED EARNINGS: Stripping out one-time items, the company is expected to log earnings of $1.86 a share, down from $1.88 a share the year prior.

SALES: Sales are projected to increase to $22.30 billion from $21.88 billion.

Shares have fallen 3.8% over the past three months and were recently trading at $145.89.

WHAT TO WATCH

P&G has said that consumers are being careful about their purchase decisions. Investors will be watching closely for signs of consumer health, especially in an environment of weak consumer sentiment yet resilient spending.
P&G has said that it is investing in innovation not discounts to attract cautious consumers. Investors will want to see whether that strategy is working and whether the company has been able to avoid significant price cuts or promotions.
In October, the company said it expected tariffs to add about $400 million to its annual costs, down from its prior estimate of $800 million. Investors will want to hear whether the company's tariff burden has continued to ease or whether it is stabilizing.

Write to Nicholas G. Miller at nicholas.miller@wsj.com.

Risk Warnings and Disclaimers

Add to Favorites

Procter & Gamble (PG) To Report Earnings Tomorrow: Here Is What To Expect

Stock Story

Procter & Gamble

+1.00%

Consumer products behemoth Proctor & Gamble will be reporting earnings tomorrow before the bell. Here’s what to expect.

Procter & Gamble beat analysts’ revenue expectations by 1% last quarter, reporting revenues of $22.39 billion, up 3% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ EBITDA estimates and a narrow beat of analysts’ revenue estimates.

Is Procter & Gamble a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, analysts are expecting Procter & Gamble’s revenue to grow 1.9% year on year to $22.29 billion, in line with the 2.1% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.86 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Procter & Gamble has missed Wall Street’s revenue estimates five times over the last two years.

Looking at Procter & Gamble’s peers in the consumer staples segment, some have already reported their Q4 results, giving us a hint as to what we can expect. WD-40 posted flat year-on-year revenue, meeting analysts’ expectations, and Constellation Brands reported a revenue decline of 9.8%, topping estimates by 2.9%. WD-40 traded down 6.6% following the results while Constellation Brands was up 5.3%.

Read our full analysis of WD-40’s results here and Constellation Brands’s results here.

There has been positive sentiment among investors in the consumer staples segment, with share prices up 4.6% on average over the last month. Procter & Gamble is up 2.6% during the same time and is heading into earnings with an average analyst price target of $165.32 (compared to the current share price of $146.84).

Risk Warnings and Disclaimers

Add to Favorites

Procter & Gamble (PG) Reports Earnings Tomorrow: What To Expect

Stock Story

Procter & Gamble

+1.00%

Consumer products behemoth Proctor & Gamble will be reporting earnings this Thursday before market open. Here’s what you need to know.

Is Procter & Gamble a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

Read our full analysis of WD-40’s results here and Constellation Brands’s results here.

There has been positive sentiment among investors in the consumer staples segment, with share prices up 3.6% on average over the last month. Procter & Gamble is up 2.7% during the same time and is heading into earnings with an average analyst price target of $165.32 (compared to the current share price of $146.50).

Risk Warnings and Disclaimers

Add to Favorites

U.S. stocks lower at close of trade; Dow Jones Industrial Average down 1.76%

Investing.com

Investing.com – U.S. stocks were lower after the close on Tuesday, as losses in the Technology, Industrials and Financials sectors led shares lower.

At the close in NYSE, the Dow Jones Industrial Average lost 1.76%, while the S&P 500 index declined 2.06%, and the NASDAQ Composite index fell 2.39%.

The best performers of the session on the Dow Jones Industrial Average were Unitedhealth Group (NYSE:UNH), which rose 2.24% or 7.41 points to trade at 338.43 at the close. Meanwhile, Coca-Cola Co (NYSE:KO) added 1.87% or 1.32 points to end at 71.76 and Procter & Gamble Company (NYSE:PG) was up 1.66% or 2.40 points to 146.94 in late trade.

The worst performers of the session were 3M Company (NYSE:MMM), which fell 6.96% or 11.68 points to trade at 156.12 at the close. International Business Machines (NYSE:IBM) declined 4.69% or 14.34 points to end at 291.33 and NVIDIA Corporation (NASDAQ:NVDA) was down 4.38% or 8.16 points to 178.07.

The top performers on the S&P 500 were Albemarle Corp (NYSE:ALB) which rose 5.83% to 172.54, Constellation Brands Inc Class A (NYSE:STZ) which was up 4.47% to settle at 163.64 and Monster Beverage Corp (NASDAQ:MNST) which gained 4.22% to close at 81.47.

The worst performers were NetApp Inc (NASDAQ:NTAP) which was down 9.35% to 94.13 in late trade, Dell Technologies Inc (NYSE:DELL) which lost 7.85% to settle at 111.07 and Norwegian Cruise Line Holdings Ltd (NYSE:NCLH) which was down 7.43% to 20.38 at the close.

The top performers on the NASDAQ Composite were INVO Fertility Inc (NASDAQ:IVF) which rose 194.19% to 2.39, Corvus Pharmaceuticals Inc (NASDAQ:CRVS) which was up 166.58% to settle at 21.46 and Aclaris Therapeutics Inc (NASDAQ:ACRS) which gained 69.08% to close at 4.43.

The worst performers were Synlogic Inc (NASDAQ:SYBX) which was down 50.00% to 0.56 in late trade, Linkhome Holdings Inc (NASDAQ:LHAI) which lost 44.77% to settle at 2.48 and Venus Concept Inc (NASDAQ:VERO) which was down 44.38% to 4.45 at the close.

Falling stocks outnumbered advancing ones on the New York Stock Exchange by 2103 to 667 and 64 ended unchanged; on the Nasdaq Stock Exchange, 2420 fell and 990 advanced, while 136 ended unchanged.

Shares in Monster Beverage Corp (NASDAQ:MNST) rose to 5-year highs; up 4.22% or 3.30 to 81.47. Shares in Synlogic Inc (NASDAQ:SYBX) fell to all time lows; down 50.00% or 0.56 to 0.56. Shares in Corvus Pharmaceuticals Inc (NASDAQ:CRVS) rose to all time highs; rising 166.58% or 13.41 to 21.46. Shares in Linkhome Holdings Inc (NASDAQ:LHAI) fell to all time lows; losing 44.77% or 2.01 to 2.48. Shares in Aclaris Therapeutics Inc (NASDAQ:ACRS) rose to 52-week highs; up 69.08% or 1.81 to 4.43.

The CBOE Volatility Index, which measures the implied volatility of S&P 500 options, was up 6.69% to 20.10 a new 1-month high.

Gold Futures for February delivery was up 3.68% or 169.29 to $4,764.69 a troy ounce. Elsewhere in commodities trading, Crude oil for delivery in March rose 0.19% or 0.11 to hit $59.45 a barrel, while the March Brent oil contract fell 0.11% or 0.07 to trade at $63.87 a barrel.

EUR/USD was up 0.69% to 1.17, while USD/JPY rose 0.04% to 158.16.

The US Dollar Index Futures was down 0.83% at 98.38.

Risk Warnings and Disclaimers

Add to Favorites

Household Products Stocks Q3 Teardown: Colgate-Palmolive (NYSE:CL) Vs The Rest

Stock Story

Central Garden & Pet

+1.83%

Central Garden & Pet-A

The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Colgate-Palmolive and the rest of the household products stocks fared in Q3.

Household products stocks are generally stable investments, as many of the industry's products are essential for a comfortable and functional living space. Recently, there's been a growing emphasis on eco-friendly and sustainable offerings, reflecting the evolving consumer preferences for environmentally conscious options. These trends can be double-edged swords that benefit companies who innovate quickly to take advantage of them and hurt companies that don't invest enough to meet consumers where they want to be with regards to trends.

The 10 household products stocks we track reported a mixed Q3. As a group, revenues beat analysts’ consensus estimates by 1.3% while next quarter’s revenue guidance was 1% above.

In light of this news, share prices of the companies have held steady as they are up 2.2% on average since the latest earnings results.

Colgate-Palmolive

Formed after the 1928 combination between toothpaste maker Colgate and soap maker Palmolive-Peet, Colgate-Palmolive is a consumer products company that focuses on personal, household, and pet products.

Colgate-Palmolive reported revenues of $5.13 billion, up 1.9% year on year. This print was in line with analysts’ expectations, but overall, it was a mixed quarter for the company with a beat of analysts’ EPS estimates but a miss of analysts’ gross margin estimates.

Colgate-Palmolive Company today reported results for third quarter 2025. Noel Wallace, Chairman, President and Chief Executive Officer, commented on the Base Business third quarter results, “We are pleased to have delivered another quarter of net sales and organic sales growth, even in the face of slowing category growth in many markets and the negative impact from lower private label pet sales as we have exited that non-strategic business.

Interestingly, the stock is up 10.2% since reporting and currently trades at $84.28.

Best Q3: Central Garden & Pet

Enhancing the lives of both pets and homeowners, Central Garden & Pet is a leading producer and distributor of essential products for pet care, lawn and garden maintenance, and pest control.

Central Garden & Pet reported revenues of $678.2 million, up 1.3% year on year, outperforming analysts’ expectations by 3.9%. The business had an exceptional quarter with a beat of analysts’ EPS and adjusted operating income estimates.

Central Garden & Pet delivered the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 5.8% since reporting. It currently trades at $33.24.

Weakest Q3: Energizer

Masterminds behind the viral Energizer Bunny mascot, Energizer is one of the world's largest manufacturers of batteries.

Energizer reported revenues of $832.8 million, up 3.4% year on year, exceeding analysts’ expectations by 0.8%. Still, it was a softer quarter as it posted EPS guidance for next quarter missing analysts’ expectations significantly and a miss of analysts’ gross margin estimates.

As expected, the stock is down 10.9% since the results and currently trades at $21.25.

Read our full analysis of Energizer’s results here.

Spectrum Brands

A leader in multiple consumer product categories, Spectrum Brands is a diversified company with a portfolio of trusted brands spanning home appliances, garden care, personal care, and pet care.

Spectrum Brands reported revenues of $733.5 million, down 5.2% year on year. This print lagged analysts' expectations by 1.1%. Zooming out, it was a mixed quarter as it also produced a beat of analysts’ EPS estimates but a miss of analysts’ gross margin estimates.

Spectrum Brands had the weakest performance against analyst estimates among its peers. The stock is up 19.2% since reporting and currently trades at $63.47.

Read our full, actionable report on Spectrum Brands here, it’s free.

WD-40

Short for “Water Displacement perfected on the 40th try”, WD-40 is a renowned American consumer goods company known for its iconic and versatile spray, WD-40 Multi-Use Product.

WD-40 reported revenues of $154.4 million, flat year on year. This result met analysts’ expectations. However, it was a softer quarter as it produced a significant miss of analysts’ EPS estimates and a miss of analysts’ EBITDA estimates.

The stock is up 1.2% since reporting and currently trades at $205.90.

Read our full, actionable report on WD-40 here, it’s free.

Risk Warnings and Disclaimers

Add to Favorites

5 Insightful Analyst Questions From Constellation Brands’s Q4 Earnings Call

Stock Story

Constellation Brands

+3.77%

Constellation Brands delivered a fourth quarter that exceeded Wall Street’s revenue and non-GAAP profit expectations, despite a notable year-over-year sales decline. Management attributed the quarter’s performance to successful pricing actions and ongoing cost savings initiatives, which helped offset headwinds from lower beer volumes, tariffs, and logistics costs. CEO Bill Newlands highlighted Pacifico’s continued growth and the company’s resilient distribution strategy as key contributors to maintaining brand health amid challenging market conditions.

Constellation Brands (STZ) Q4 CY2025 Highlights:

Revenue: $2.22 billion vs analyst estimates of $2.16 billion (9.8% year-on-year decline, 2.9% beat)
Adjusted EPS: $3.06 vs analyst estimates of $2.63 (16.2% beat)
Adjusted EBITDA: $861.4 million vs analyst estimates of $790.1 million (38.8% margin, 9% beat)
Management reiterated its full-year Adjusted EPS guidance of $11.45 at the midpoint
Operating Margin: 31.1%, down from 32.2% in the same quarter last year
Organic Revenue fell 2% year on year vs analyst estimates of 4.4% declines (243.4 basis point beat)
Market Capitalization: $26.56 billion

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From Constellation Brands’s Q4 Earnings Call

Bonnie Herzog (Goldman Sachs) asked about the resilience of beer operating margins despite volume declines. CFO Garth Hankinson explained that cost savings and pricing actions offset headwinds, but warned of additional margin pressure from tariffs and depreciation in the coming quarter.
Nadine Sarwat (Bernstein) inquired about the sustainability of historical beer margins amid a weaker macroeconomic backdrop. Hankinson said future guidance will reflect updated economic conditions and indicated more details would be provided during the next update.
Lauren Lieberman (Barclays) questioned capital expenditure plans and the modular approach to brewery expansion. Hankinson confirmed flexibility in spend, stating investments will be timed to demand, with long lead times on equipment factored into planning.
Dara Mohsenian (Morgan Stanley) sought clarity on shelf space gains for the beer portfolio. CEO Bill Newlands responded that distribution remains a top opportunity, citing recent share gains and initiatives like the Shopper-First Shelf to strengthen retailer relationships.
Filippo Falorni (Citi) asked about the beer pricing environment and recent adjustments to specific brands. Newlands said price changes to Oro and Premier improved trends and that the company remains committed to meeting consumer expectations through price pack architecture.

Catalysts in Upcoming Quarters

In the coming quarters, the StockStory team will watch (1) the pace and effectiveness of modular brewery capacity expansion, (2) the ability to sustain and grow distribution for Pacifico and other key brands, and (3) management’s handling of input cost pressures, especially aluminum and tariffs. Additionally, we will monitor the impact of major sporting events and evolving consumer trends, particularly among Hispanic demographics, on overall demand.

Constellation Brands currently trades at $153.43, up from $140.49 just before the earnings. Is the company at an inflection point that warrants a buy or sell? Find out in our full research report (it’s free).

Risk Warnings and Disclaimers

Add to Favorites