The Procter & Gamble Company Just Beat EPS By 6.0%: Here's What Analysts Think Will Happen Next
It's been a good week for The Procter & Gamble Company (NYSE:PG) shareholders, because the company has just released its latest quarterly results, and the shares gained 2.1% to US$161. Procter & Gamble reported US$23b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of US$1.97 beat expectations, being 6.0% higher than what the analysts expected. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
Taking into account the latest results, the consensus forecast from Procter & Gamble's 21 analysts is for revenues of US$89.8b in 2027. This reflects a modest 2.1% improvement in revenue compared to the last 12 months. Statutory per-share earnings are expected to be US$6.81, roughly flat on the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of US$88.9b and earnings per share (EPS) of US$6.80 in 2027. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
View our latest analysis for Procter & Gamble
The consensus price target rose 7.2% to US$173despite there being no meaningful change to earnings estimates. It could be that the analystsare reflecting the predictability of Procter & Gamble's earnings by assigning a price premium. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Procter & Gamble at US$190 per share, while the most bearish prices it at US$143. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Procter & Gamble is an easy business to forecast or the the analysts are all using similar assumptions.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The analysts are definitely expecting Procter & Gamble's growth to accelerate, with the forecast 2.8% annualised growth to the end of 2027 ranking favourably alongside historical growth of 2.2% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 3.0% annually. Procter & Gamble is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Procter & Gamble going out to 2029, and you can see them free on our platform here..
You should always think about risks though. Case in point, we've spotted 2 warning signs for Procter & Gamble you should be aware of.
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