The Procter & Gamble Company (NYSE:PG) Just Released Its Annual Results And Analysts Are Updating Their Estimates

Last week, you might have seen that The Procter & Gamble Company (NYSE:PG) released its full-year result to the market. The early response was not positive, with shares down 3.7% to US$161 in the past week. It looks like the results were a bit of a negative overall. While revenues of US$84b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 2.1% to hit US$6.02 per share. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

See our latest analysis for Procter & Gamble

Taking into account the latest results, the current consensus from Procter & Gamble's 23 analysts is for revenues of US$86.4b in 2025. This would reflect a satisfactory 2.8% increase on its revenue over the past 12 months. Per-share earnings are expected to accumulate 9.9% to US$6.94. In the lead-up to this report, the analysts had been modelling revenues of US$86.9b and earnings per share (EPS) of US$6.94 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

The analysts reconfirmed their price target of US$174, showing that the business is executing well and in line with expectations. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Procter & Gamble analyst has a price target of US$189 per share, while the most pessimistic values it at US$143. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Procter & Gamble's past performance and to peers in the same industry. It's pretty clear that there is an expectation that Procter & Gamble's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 2.8% growth on an annualised basis. This is compared to a historical growth rate of 4.5% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 3.3% annually. So it's pretty clear that, while Procter & Gamble's revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target held steady at US$174, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Procter & Gamble going out to 2027, and you can see them free on our platform here.

We don't want to rain on the parade too much, but we did also find 1 warning sign for Procter & Gamble that you need to be mindful of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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