- To publish 2021 third quarter results before market opening on Tuesday, April 20
- Income Expectation: $ 17.97 billion
- Profit Per Share Expected: $ 1.19
PG Weekly TTM
Another factor that could pose some challenges to the company is the increase in the costs of materials such as plastic and aluminum, and how to deal with these inflationary pressures.
If history offers a clue, inflation actually increases the profitability of the “blue chip” companies. According to a Wall Street Journal report citing Jonathan Golub, chief strategist of US stocks at Credit Suisse Group, the rise in material costs generally indicates a rise in profit margins. Golub:
“High input costs are generally accompanied by widespread economic growth, and this growth allows companies to cover additional costs with price increases they apply. Also, fixed expenses such as factory equipment can be distributed to higher sales.”
The latest direction P & G offers is that this trend will not disappear soon. The company said in January that it expected organic revenue to grow by 6% in fiscal 2021, which was less than 5% from the previous forecast. P&G also expects core earnings per share to increase by as much as 10% compared to the previous 5-8% forecast.
P&G management believes that some of the habits gained during the COVID-19 period will become permanent and offer long-term support to the company. “Consumers’ focus on health, hygiene and housekeeping has permanently changed,” CFO Jon Moeller told Bloomberg in January.
“Demand may not remain exactly where it is today, but it is difficult to imagine that demand for products such as hand cleaning will return to old levels.”
The pace of growth P & G recorded is not sustainable for a consumer products company. It wouldn’t be fair to expect a great quarter-at-a-time performance from a giant like P&G.
However, P&G stock is still our favorite choice for long-term investors seeking revenue. With a 2.53% dividend and a quarterly payment of $ 0.87 per share, the company is one of the highest dividend earnings in the United States. In our opinion, every weakness should be considered as a buying opportunity.