Q4 Earnings: 3 Consumer Staples Titans on Deck

Earnings Season Overview - The 2024 Q4 earnings season has gained momentum with several consumer staples giants set to report, including Procter & Gamble (PG), Johnson & Johnson (JNJ), and Kimberly-Clark (KMB) [1] Procter & Gamble (PG) - PG shares have declined approximately 3% over the past six months but modestly outperformed the Zacks Consumer Staples sector [3] - Analysts have shown bearish sentiment, with the Zacks Consensus EPS estimate of $1.86 down 2$21.6 billion are 0.7% higher than the year-ago figure [3] - Gross margin expansion has strengthened profitability, and the company reaffirmed its current year guidance [5] - Valuation is in line with historical levels, with a forward 12-month earnings multiple of 22.5X and a PEG ratio of 3.5X [7] - The stock has a Style Score of 'D' for Value [7] Johnson & Johnson (JNJ) - JNJ shares have declined 2% over the past six months but outperformed the Zacks Consumer Staples sector [8] - Analysts have shown slight bearishness, with the Zacks Consensus EPS estimate of $2.00 down modestly, suggesting a 13$1.50 per share, suggesting flat YoY growth [14] - Revenue is expected to decline 3% YoY [14] - Margins have expanded, but this has been largely ignored by investors, with shares remaining flat over a three-year timeframe [16] - Valuation is fair, with a forward 12-month earnings multiple of 16.7X and a PEG ratio of 3.6X [18] - The stock has a Style Score of 'C' for Value [18] Key Themes for Earnings Releases - Margins and top-line growth will be critical factors to watch in the upcoming earnings releases of PG, JNJ, and KMB [20] - Given the defensive nature of these companies, significant post-earnings volatility is unlikely [20]