Procter & Gamble Stock Rises on Earnings Beat: What to Know
Procter & Gamble is trading near the top of the Dow Wednesday after the consumer staples giant beat expectations for its fiscal 2025 second quarter.
Procter & Gamble (PG) is one of the best Dow Jones stocks Wednesday after the consumer products giant beat top- and bottom-line expectations for its fiscal 2025 second quarter and reaffirmed its outlook for 2025.
In the three months ending December 31, Procter & Gamble's revenue increased 2.1% year over year to $21.9 billion. Its earnings per share (EPS) rose 2.2% from the year-ago period to $1.88.
"The P&G team delivered an acceleration in organic sales growth, core EPS growth and strong cash return to shareowners in the second quarter," said CEO Jon Moeller in a statement. "Our first-half results keep us on track to deliver within our guidance ranges on all key financial metrics for the fiscal year."
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The company's results topped analysts' expectations. Wall Street was anticipating revenue of $21.5 billion and earnings of $1.86 per share, according to CNBC.
As its CEO stated, P&G reaffirmed its outlook for fiscal 2025. The company expects to achieve revenue growth in the range of 2% to 4% and earnings of $6.91 to $7.05 per share.
Is Procter & Gamble stock a buy, sell or hold?
Procter & Gamble has lagged the broader market over the past 12 months, up 12% on a total return basis (price change plus dividends) vs the S&P 500's nearly 27% gain. But Wall Street remains mostly bullish on one of the best dividend stocks for dependable dividend growth.
According to S&P Global Market Intelligence, the average analyst target price for PG stock is $179.27, representing implied upside of nearly 8% to current levels. Additionally, the consensus recommendation is Buy.
However, not all analysts are upbeat. Financial services firm Stifel, for one, has a Hold rating on the blue chip stock, along with a $161 price target, which sits below where PG is currently trading.
In a January 16 note, Stifel analyst Mark S. Astrachan said he believes PG shares are trading near fair value. "Our Hold rating reflects less expected relative outperformance as comparisons become increasingly difficult, including downside risk from slower sales growth and higher input costs," he added.
Related Content
- Why GE Vernova Stock Is Higher After Its Earnings Miss
- Earnings Calendar and Analysis for This Week
- Analysts' Top S&P 500 Stocks to Buy Now
-
The New Fed Chair Was Announced: What You Need to KnowPresident Donald Trump announced Kevin Warsh as his selection for the next chair of the Federal Reserve, who will replace Jerome Powell.
-
Ask the Tax Editor: Taxation of Social Security BenefitsAsk the Editor In this week's Ask the Editor Q&A, Joy Taylor answers questions on the taxation of Social Security benefits
-
The U.S. Economy Will Gain Steam This YearThe Kiplinger Letter The Letter editors review the projected pace of the economy for 2026. Bigger tax refunds and resilient consumers will keep the economy humming in 2026.
-
The New Fed Chair Was Announced: What You Need to Know
President Donald Trump announced Kevin Warsh as his selection for the next chair of the Federal Reserve, who will replace Jerome Powell.
-
If You'd Put $1,000 Into AMD Stock 20 Years Ago, Here's What You'd Have TodayAdvanced Micro Devices stock is soaring thanks to AI, but as a buy-and-hold bet, it's been a market laggard.
-
6 Key Ways to Plan for Financial Success in 2026 (and Avoid a Portfolio 'Death Spiral')Use last year's tax data to help guide you as you consider this year's taxes, asset allocation and sources of the regular income you'll need in retirement.
-
A Financial Plan Is a Living Document: Is Yours Still Breathing?If you've made a financial plan, congratulations, but have you reviewed it recently? Here are six reasons why your plan needs regular TLC.
-
Nasdaq Drops 172 Points on MSFT AI Spend: Stock Market TodayMicrosoft, Meta Platforms and a mid-cap energy stock have a lot to say about the state of the AI revolution today.
-
Your Guide to Financial Stability as a Military Spouse, Courtesy of a Financial PlannerThese practical resources and benefits can help military spouses with managing a budget, tax and retirement planning, as well as supporting their own career
-
3 Steps to Keep Your Digital Data Safe, Courtesy of a Financial PlannerAs data breaches and cyberattacks increase, it's vital to maintain good data hygiene and reduce your personal information footprint. Find out how.
-
Here's Why You Can Afford to Ignore College Sticker PricesCollege tuition fees can seem prohibitive, but don't let advertised prices stop you from applying. Instead, focus on net costs after grants and scholarships.
