Benzinga | Jul 29, 2021 10:40AM EDT

Procter & Gamble Earnings Preview

Procter & Gamble (NYSE:PG) announces its next round of earnings this Friday, July 30. Here is Benzinga's everything-that-matters guide for this Friday's Q4 earnings announcement.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

Procter & Gamble EPS is expected to be around $1.09, according to sell-side analysts. Sales will likely be near $18.36 billion. Procter & Gamble reported a profit of $1.16 per share when it published results during the same quarter last year. Sales in that period totaled $17.70 billion.

Why Analyst Estimates And Earnings Surprises Are Important

Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.

If the company were to match the consensus estimate when it reports Friday, earnings would be down 6.03%. Sales would be have grown 3.74% from the same quarter last year. Here is how the company's reported EPS has compared to analyst estimates in the past: Quarter Q3 2021 Q2 2021 Q1 2021 Q4 2020EPS Estimate 1.19 1.51 1.41 1.01EPS Actual 1.26 1.64 1.63 1.16Revenue Estimate 17.92 B 19.27 B 18.35 B 16.97 BRevenue Actual 18.11 B 19.75 B 19.32 B 17.70 B

Want Real-Time Earnings Calendar Updates?

Benzinga consistently updates its earnings calendars to stay up-to-date with the latest company earnings reports. Check out the full earnings calendar list updated in real-time by following this link.

Stock Performance

Shares of Procter & Gamble were trading at $138.76 as of July 28. Over the last 52-week period, shares are up 6.6%. Given that these returns are generally positive, long-term shareholders are probably satisfied going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Procter & Gamble is scheduled to hold the call at 08:30:00 ET and can be accessed here.