PG’s FQ3 2025 earnings report shows declines in key segments. I believe such earning pressure largely came from headwinds from trade disputes and persisting inflation. I further expect these headwinds to continue and continue confine PG stocks to be range bound. Recent trading patterns provide further indictors for continued consolidation.
Let me start with the fundamentals the company just updated in its 3rd fiscal quarter ER, released on April 24 before the market opened. Overall, the results reflected ongoing headwinds in my view, largely due to softened/softening consumer demand amid uncertainties caused by the trade and tariff disputes. The company suffered Q/Q declines in all its key segments as you can see from the following table. To wit, for the 3rd fiscal quarter of 2025, its Beauty segment recorded net sales of $3,490 million, translating into a quarterly decrease of -9.3% and a Y/Y decrease of -1.7%. The Grooming segment's net sales experienced an even large quarterly decline of -14.1% and a Y/Y decrease of -2.2%. Finally, the Health Care segment reported net sales of $2,880 million, with a quarterly decrease of -11.4% and a slight Y/Y increase of 0.2%.
Looking ahead, I don’t expect profit growth to resume in the near future.
FQ3 stock: technical trading signals
Turning to technical trading signs, I am also seeing multiple indictors for continued consolidation.
Let me close with a macroscopic view to reinforce my hold rating. As a reflection of our top down investing approach, our Investing Group Service (Envision Early Retirement) developed the following market dashboard. It helps us to get an overview of various sectors before we zoom in on particular stocks. BTW, feel free to download the dashboard (it is coded as a Google sheet). As seen, the broader staple sector as approximated by XLP is largely ranked neutral too in terms of its dividend yield Z-score. I believe this neutral ranking for the broader sector is perfectly applicable to PG too (which is a leading component stock for the staple sector and also the XLP fund) given the positives and negatives analyzed above.
Thanks for reading and see you next time!
Due to Tiger’s limits on the use of charts and tables, see my Youtube video for more details if interested:
https://www.youtube.com/watch?v=fJYw3sKDTo8
Market Dashboard Link (Google Sheet): https://docs.google.com/spreadsheets/d/1GGf9a66XMYmjJCu3qaYaNCVKCr0ZWCvuS6UoC-v9wYM/edit?gid=121972095#gid=121972095
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