Procter & Gamble Co. (PG, Financial) anticipates fiscal year 2025 capital expenditures to represent 4% to 5% of its net sales for the year. The company projects core earnings per share (EPS) for FY25 to rise to between $6.72 and $6.82. This represents a growth range of 2% to 4%, compared to the core EPS of $6.59 reported for fiscal year 2024.
P&G continues to face challenges, identifying a post-tax commodity cost headwind of around $200 million for FY25. Additionally, the company expects the impact of unfavorable foreign exchange rates to result in an additional $200 million loss after tax. Together, these factors are anticipated to create a negative effect of $0.16 per share on the company's core EPS.
The company also foresees a slight negative impact from net interest income and expense throughout FY25. Furthermore, P&G acknowledges that the previous fiscal year's results were positively affected by small brand divestitures, which are not expected to contribute at the same level in FY25. This change is estimated to contribute a $0.04 per share headwind to the core EPS.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 25 analysts, the average target price for Procter & Gamble Co (PG, Financial) is $178.81 with a high estimate of $200.00 and a low estimate of $144.22. The average target implies an upside of 7.89% from the current price of $165.73. More detailed estimate data can be found on the Procter & Gamble Co (PG) Forecast page.
Based on the consensus recommendation from 29 brokerage firms, Procter & Gamble Co's (PG, Financial) average brokerage recommendation is currently 2.2, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Procter & Gamble Co (PG, Financial) in one year is $166.64, suggesting a upside of 0.55% from the current price of $165.73. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Procter & Gamble Co (PG) Summary page.
