In This Article:
Consumer goods company Procter & Gamble (PG) saw net sales rise year-over-year in its fiscal second quarter. Overall, P&G reported mixed earnings results, missing revenue estimates by almost $130 million.
Live from the New York Stock Exchange, Yahoo Finance Reporter Madison Mills discusses what Procter & Gamble's sales figures across its categories represent for US consumer spending.
For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.
Editor's note: This article was written by Luke Carberry Mogan.
Video Transcript
SEANA SMITH: Let's take a look at a stock to watch here, Procter&Gamble. Another key mover here ahead of the open. On the move after seeing net sales rise 3%. But revenue coming in slightly below expectations. "Yahoo Finance's" Madison Mills is on the floor of the New York Stock Exchange following the movement that we're seeing ahead of the open. Maddie?
MADISON MILLS: Yeah. Beat on revenue, but a miss on EPS. And actually, rather, I want to correct that because it's a beat on EPS and a miss on revenue. Lots of excitement this morning because the rock just walked by right before my hit.
So I'm a little out of sorts here. But listen, the Street is rewarding that forward guidance for this name. Expecting a 4% gain on revenue. And the reason I wanted to focus on this stock this morning is because this is a huge indicator of the strength of the consumer, which could be both good and bad news.
It's potentially good news that the consumer is not falling under the weight of price hikes, that inflation narrative that we always talk about. The P&G consumers, particularly, in the grooming sector, which had a lot of growth over the past quarter, are able to withstand those price hikes and maintain their purchasing power.
So that's good news for P&G's earnings. It's potentially bad news for the Fed. They want to see a little bit of that consumer softening. This also aligns with those retail sales numbers that just came in hotter than expected the other week. So heading into the Fed meetings that are to come, I'm curious about what the inflationary narrative that we might be hearing about in these earnings calls. How much of that is going to come up in the Fed's conversations about what they're going to do with rate hikes-- rate cuts in the year to come?
SEANA SMITH: All right. Maddie, thanks so much for keeping us updated on that. Again, a key mover here ahead of the open.