Shares of consumer goods conglomerate Procter & Gamble (NYSE:PG) gained in pre-market trading after the company reported earnings for its first quarter of Fiscal Year 2024. The company’s adjusted earnings came in at $1.83 per share, up by 17% year-over-year, which beat analysts’ consensus estimate of $1.72 per share.
Sales increased by 6% year-over-year to $21.9 billion in Q1 versus analysts’ expectations of $21.6 billion. The company’s organic sales rose by 7% year-over-year in the first quarter.
Looking forward, P&G adjusted its outlook for FY24 and expects its sales to grow in the range of 2% to 4% year-over-year. The company also expects currency exchange rate fluctuations to create a 1% to 2% drag on its results.
P&G anticipates FY24 diluted earnings per share to rise between 6% and 9% to $6.25 and $6.43 per share. The company added that it expects “tailwinds of approximately $800 million after-tax due to favorable commodity costs for fiscal year 2024.”
Is PG a Good Stock to Buy Now?
Analysts are cautiously optimistic about PG stock, with a Moderate Buy consensus rating based on 11 Buys and seven Holds. The average PG price target of $164.24 implies an upside potential of 12.3% from current levels.
