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2022-04-16
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3 Questions Procter & Gamble Will Answer for Investors on Wednesday
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That payout hike marks the 66th consecutive year of income increases, keeping the consumer products giant near the top of the entire market on that score.</p><p>Yet while investors know they'll receive more cash from P&G this year, they have some other big questions around growth and profitability that might be answered in the upcoming report.</p><p>So let's see what the owner of dozens of massive global brands -- including Tide, Pampers, and Bounty -- might have to say in its announcement on Wednesday, April 20.</p><p><img src=\"https://static.tigerbbs.com/3f6bc160d373e45b80b6c5f5f38190ac\" tg-width=\"700\" tg-height=\"466\" referrerpolicy=\"no-referrer\" width=\"100%\" height=\"auto\"/></p><p>Image source: Getty Images.</p><h2>1. Is market share still rising?</h2><p>P&G's stock has outperformed the market so far in 2022, a contrast to many tech- and growth-focused investments. It's easy to see why investors might want to hold a steady dividend payer like this during inflation and slowing economic growth. But its market-share gains are an important part of the bullish thesis, too.</p><p>Management said back in late January that these gains were accelerating through late 2021 thanks to a mix of innovative product releases, pricing power, and supply-chain strength. A key worry heading into this report is whether those factors are still working in P&G's favor.</p><p>Inflation spiked in the weeks following its fiscal Q2 report, and it's possible that more consumers are turning to generic or store brands to satisfy demand for essentials like paper towels and diapers. If that happens, P&G might report underwhelming sales growth for Q3.</p><h2>2. How far does pricing power stretch?</h2><p>P&G raised prices across many of its products to reflect higher input costs. And the same is true for peers like <b>Kimberly-Clark</b> ( KMB 0.02% ). Investors generally like to see prices rise since that boosts sales and profits, and it also suggests that a company is providing plenty of value to its customers.</p><p>Higher prices aren't as impressive if they produce declining sales volumes. Kimberly-Clark's organic sales growth in recent quarters, for example, has come entirely from higher prices that have offset slight declines in volume. P&G has so far avoided this fate and posted positive prices and volumes. Watch that balance on Wednesday for signs of stress on the business.</p><p><img src=\"https://static.tigerbbs.com/3e65f9833dcd6f1eb6cfab2674d3b017\" tg-width=\"720\" tg-height=\"482\" referrerpolicy=\"no-referrer\" width=\"100%\" height=\"auto\"/></p><p>PG Operating Margin (TTM) data by YCharts</p><p>Operating margin will be another useful metric to follow for evidence that P&G is finding enough efficiency in the business to protect its industry-leading profitability.</p><h2>3. What about the rest of 2022?</h2><p>Heading into the report, P&G is calling for organic sales gains to land between 4% and 5% on top of strong growth over the previous two years. Management upgraded that outlook slightly back in January while keeping its earnings forecast steady despite accelerating inflation.</p><p>The cost trends have only worsened since then, so it will be interesting to see what the company has to say about the outlook for the final quarter of fiscal 2022, which ends in June. P&G might venture a general forecast about the new fiscal year ahead, too.</p><p>But whatever the growth trends, investors are likely to see rising cash returns from dividend payments and stock buybacks thanks to the company's ability to convert nearly all its earnings into free cash flow each year.</p></body></html>","source":"fool_stock","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>3 Questions Procter & Gamble Will Answer for Investors on Wednesday</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\n3 Questions Procter & Gamble Will Answer for Investors on Wednesday\n</h2>\n\n<h4 class=\"meta\">\n\n\n2022-04-16 07:45 GMT+8 <a href=https://www.fool.com/investing/2022/04/15/time-sensitive-2-questions-procter-gamble-will-ans/><strong>Motley Fool</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>True to form, Procter & Gamble ( PG -0.56% ) announced a raise to its quarterly dividend payment this week, just a few days before it is scheduled to report its latest earnings results. That payout ...</p>\n\n<a href=\"https://www.fool.com/investing/2022/04/15/time-sensitive-2-questions-procter-gamble-will-ans/\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"BK4533":"AQR资本管理(全球第二大对冲基金)","BK4558":"双十一","BK4211":"区域性银行","BK4504":"桥水持仓","PG":"宝洁","BK4018":"居家用品","BK4567":"ESG概念","BK4534":"瑞士信贷持仓","BK4559":"巴菲特持仓","ISBC":"投资者银行","BK4581":"高盛持仓","BK4550":"红杉资本持仓"},"source_url":"https://www.fool.com/investing/2022/04/15/time-sensitive-2-questions-procter-gamble-will-ans/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2227560720","content_text":"True to form, Procter & Gamble ( PG -0.56% ) announced a raise to its quarterly dividend payment this week, just a few days before it is scheduled to report its latest earnings results. That payout hike marks the 66th consecutive year of income increases, keeping the consumer products giant near the top of the entire market on that score.Yet while investors know they'll receive more cash from P&G this year, they have some other big questions around growth and profitability that might be answered in the upcoming report.So let's see what the owner of dozens of massive global brands -- including Tide, Pampers, and Bounty -- might have to say in its announcement on Wednesday, April 20.Image source: Getty Images.1. Is market share still rising?P&G's stock has outperformed the market so far in 2022, a contrast to many tech- and growth-focused investments. It's easy to see why investors might want to hold a steady dividend payer like this during inflation and slowing economic growth. But its market-share gains are an important part of the bullish thesis, too.Management said back in late January that these gains were accelerating through late 2021 thanks to a mix of innovative product releases, pricing power, and supply-chain strength. A key worry heading into this report is whether those factors are still working in P&G's favor.Inflation spiked in the weeks following its fiscal Q2 report, and it's possible that more consumers are turning to generic or store brands to satisfy demand for essentials like paper towels and diapers. If that happens, P&G might report underwhelming sales growth for Q3.2. How far does pricing power stretch?P&G raised prices across many of its products to reflect higher input costs. And the same is true for peers like Kimberly-Clark ( KMB 0.02% ). Investors generally like to see prices rise since that boosts sales and profits, and it also suggests that a company is providing plenty of value to its customers.Higher prices aren't as impressive if they produce declining sales volumes. Kimberly-Clark's organic sales growth in recent quarters, for example, has come entirely from higher prices that have offset slight declines in volume. P&G has so far avoided this fate and posted positive prices and volumes. Watch that balance on Wednesday for signs of stress on the business.PG Operating Margin (TTM) data by YChartsOperating margin will be another useful metric to follow for evidence that P&G is finding enough efficiency in the business to protect its industry-leading profitability.3. What about the rest of 2022?Heading into the report, P&G is calling for organic sales gains to land between 4% and 5% on top of strong growth over the previous two years. Management upgraded that outlook slightly back in January while keeping its earnings forecast steady despite accelerating inflation.The cost trends have only worsened since then, so it will be interesting to see what the company has to say about the outlook for the final quarter of fiscal 2022, which ends in June. P&G might venture a general forecast about the new fiscal year ahead, too.But whatever the growth trends, investors are likely to see rising cash returns from dividend payments and stock buybacks thanks to the company's ability to convert nearly all its earnings into free cash flow each year.","news_type":1},"isVote":1,"tweetType":1,"viewCount":1192,"commentLimit":10,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"symbols":[],"verified":2,"subType":0,"readableState":1,"langContent":"CN","currentLanguage":"CN","warmUpFlag":false,"orderFlag":false,"shareable":true,"causeOfNotShareable":"","featuresForAnalytics":[],"commentAndTweetFlag":false,"andRepostAutoSelectedFlag":false,"upFlag":false,"length":10,"xxTargetLangEnum":"ZH_CN"},"commentList":[],"isCommentEnd":true,"isTiger":false,"isWeiXinMini":false,"url":"/m/post/613712902"}
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