Procter & Gamble earnings beat, but company warns cost pressure will weigh on future profits

Earnings

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View of Dawn dish soap liquid at Stop & Shop Supermarket.
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Procter & Gamble is set to report its fiscal fourth-quarter earnings results before the market opens on Friday.

Here’s what Wall Street is anticipating, based on a survey of analysts by Refinitiv:

  • Earnings per share: $1.08, adjusted
  • Revenue: $18.41 billion

P&G announced Thursday evening that current chief operating officer Jon Moeller will become CEO in November, replacing David Taylor, who will become executive chairman of the company’s board of directors. Taylor, 62, had been CEO since Nov. 1, 2015.

Last quarter, P&G’s earnings and revenue topped analysts’ estimates, as consumers maintained pandemic buying trends like stocking up on cleaning supplies. People also started buying beauty products again.

The company — whose portfolio includes Tide detergent, Charmin toilet paper and Pampers diapers — is on track to raise prices on some products this autumn in response to higher commodity costs. Rival Kimberly-Clark, which makes Huggies, has also announced price hikes on various items.

After the price increases go into effect, P&G is planning to hold market share by trying to increase consumers’ perception of the value of its products and introducing new or upgraded items. Companies such as P&G and Kimberly-Clark are betting consumers will be willing to pay more for the brand version, instead of opting for a cheaper private label.

In its most recently issued forecast for fiscal 2020, P&G said it expected sales to be up 5% to 6% and adjusted earnings to grow of 8% to 10%. But the company has also been absorbing higher raw material and transportation costs, which could weigh on results.

P&G shares are up less than 1% year to date. The company has a market cap of $341.4 billion.

—CNBC’s Amelia Lucas contributed to this reporting.

This story is breaking. Please check back for updates.

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