Procter & Gamble Shares Fall After Cutting Full-Year Outlook

Procter & Gamble Co. (PG.US) shares fell 2% on Thursday after the consumer products giant cut its full-year sales and profit outlook amid challenging market conditions and trade tensions.

Q3 Results Miss Expectations

P&G reported third-quarter earnings of $1.54 per share, slightly above the $1.53 analyst estimate, but sales declined 2% to $19.78 billion, missing the $20.22 billion forecast. Organic sales grew just 1%, well below the expected 2.53%, as volume remained flat while pricing increased 1%.

Performance varied across segments with Healthcare (+4%), Grooming (+3%) and Beauty (+2%) showing growth, while Fabric & Home Care was flat and Baby, Feminine & Family Care declined 1%. Gross margin fell to 51% as higher costs offset pricing benefits.

Reduced Guidance

The company significantly lowered its fiscal 2025 outlook:

• Core EPS growth of 2% to 4%, down from 5% to 7%
• Organic revenue growth of 2%, reduced from 3% to 5%
• Core EPS of $6.72 to $6.82, below prior $6.91 to $7.05 forecast

"We delivered modest growth this quarter in a challenging and volatile consumer and geopolitical environment," CEO Jon Moeller said. "We're making appropriate adjustments to our outlook to reflect underlying market conditions."

P&G continues to expect commodity cost and foreign exchange headwinds of about $200 million each after tax for fiscal 2025. The guidance cut follows CFO Andre Schulten's February warning about slowing retailer shipments and weaker consumption in several international markets.

Analysts note that while P&G is better positioned than competitors to handle consumer pressures and tariff impacts, market challenges are creating downward pressure on the company's performance for the year.

P&G (D1)

The stock is trading near a zone that served as strong support throughout last year and previously triggered reversals. Bears will aim to break below the recent lows around $156, while bulls will look to reclaim the 30-day SMA at $166.82. The RSI is in bearish divergence with lower highs, and the MACD is tightening, suggesting a potential bearish crossover.