Procter & Gamble Stock Tumbles as Oil Surge Squeezes Staples
Procter & Gamble (NYSE:PG) stock took a hit on September 10, falling 1.23% to $142.45 as Brent crude oil reached its highest level since May.
The company's reliance on household staples means that rising raw material costs, including energy and transportation expenses, directly impact their income statement.
Procter & Gamble had already factored in a $1 billion after-tax pressure from higher costs into their fiscal 2027 guidance, which includes 1% to 3% all-in sales growth and core earnings per share of $6.89 to $7.11.
The company's fiscal fourth quarter results showed net revenue of $21.2 billion, missing the consensus estimate by $160 million, but adjusted earnings per share beat expectations at $1.43.
Analysts remain divided on Procter & Gamble's valuation, with some questioning whether the current price justifies a Buy given the headwinds facing the company, including economic and geopolitical uncertainty, rising input costs, weak consumer sentiment, and declining core operating margins.