We’re exiting our position in a household products giant after a soft quarter
Shortly after the opening bell, we will be exiting our position in Procter & Gamble , selling 200 shares at roughly $144. Following the trade, Jim Cramer’s Charitable Trust will no longer own a position in PG. Shares of Procter & Gamble are falling roughly 3%, or $4.50 apiece, in premarket trading after reporting mixed quarterly earnings . Organic sales growth was flat, missing analyst forecasts of about 2% growth. The company’s Beauty segment — home to brands like Head & Shoulders, Pantene and Old Spice — was the only category to post positive organic sales growth. On the bottom line, earnings per share dipped 3% year over year to $1.43, but that was slightly better than the analyst forecast of $1.41, according to LSEG data. As we previewed on Tuesday when we sold 100 shares at around $151, guidance for the new fiscal year 2027 was soft. The company expects organic sales growth in the range of 1% to 3%, which is in line with the analyst forecast of about 2% growth. Procter also expects earnings per share in the range of $6.89 to $7.11, which at the midpoint of $7.00 is below the $7.02 consensus. The company estimated a roughly $1 billion after-tax headwind in fiscal 2027 due to higher raw materials, energy and transportation costs. That’s a drag on the EPS outlook. Procter is historically a very conservative company, so this outlook may be revised higher over time, particularly if the Iran war reaches a durable conclusion, leading to a sustained drop in energy and input costs. But we’ve simply been searching for better growth at this company under CEO Shailesh Jejurikar, who took the helm in January. It’s still early in Jejurikar’s tenure and we won’t completely count out his plan to reaccelerate growth, but we prefer to monitor his progress from afar. From this sale, we will realize a small loss of less than 1% on stock purchased between November 2025 and March 2026. We initiated the position last fall as a defensive hedge. Below is a closer look at P & G’s fourth-quarter performance on key metrics and segments versus Wall Street expectations: (See here for a full list of the stocks in Jim Cramer’s Charitable Trust.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
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