Latest news with #ConsumerGoods
Globe and Mail
4 days ago
- Business
- Globe and Mail
Analysts Offer Insights on Consumer Goods Companies: Universal Technical Institute (UTI), Central Garden Pet (CENT) and Costco (COST)
Companies in the Consumer Goods sector have received a lot of coverage today as analysts weigh in on Universal Technical Institute (UTI – Research Report), Central Garden Pet (CENT – Research Report) and Costco (COST – Research Report). Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Universal Technical Institute (UTI) Truist Financial analyst Jasper Bibb maintained a Buy rating on Universal Technical Institute today. The company's shares closed last Wednesday at $33.42. According to Bibb is a 4-star analyst with an average return of 16.7% and a 72.5% success rate. Bibb covers the Industrial Goods sector, focusing on stocks such as ARAMARK Holdings, ABM Industries, and APi Group. ;'> Universal Technical Institute has an analyst consensus of Strong Buy, with a price target consensus of $37.00, implying a 15.7% upside from current levels. In a report issued on July 29, Barrington also reiterated a Buy rating on the stock with a $36.00 price target. Central Garden Pet (CENT) Truist Financial analyst Bill Chappell reiterated a Hold rating on Central Garden Pet today. The company's shares closed last Wednesday at $39.41. According to Chappell is a 3-star analyst with an average return of 1.2% and a 46.7% success rate. Chappell covers the Consumer Goods sector, focusing on stocks such as Edgewell Personal Care, Constellation Brands, and Celsius Holdings. ;'> The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Central Garden Pet with a $41.50 average price target, which is a 4.1% upside from current levels. In a report issued on July 25, J.P. Morgan also maintained a Hold rating on the stock with a $38.00 price target. Costco (COST) In a report released today, Scot Ciccarelli from Truist Financial maintained a Hold rating on Costco. The company's shares closed last Wednesday at $968.56. According to Ciccarelli is a top 25 analyst with an average return of 19.3% and a 75.6% success rate. Ciccarelli covers the NA sector, focusing on stocks such as Genuine Parts Company, Advance Auto Parts, and Tractor Supply. ;'> Currently, the analyst consensus on Costco is a Moderate Buy with an average price target of $1103.26, a 16.9% upside from current levels. In a report released yesterday, Wells Fargo also maintained a Hold rating on the stock with a $1000.00 price target.
Yahoo
02-08-2025
- Business
- Yahoo
This Dividend King Just Issued a Tariff Warning. Is Its Reliable Yield Enough to Soften the Blow?
Trade tensions are putting extra pressure on companies across the U.S., and the consumer goods industry is feeling the pinch in real time. Consumer spending, which makes up nearly two-thirds of all economic activity in the U.S., is growing by just 1.4%, its slowest pace since the pandemic. For consumer staples giant Procter & Gamble (PG), the company's recent fourth-quarter results made the impact clear: It is about to raise prices on a quarter of its U.S. lineup, mainly because of the latest round of tariffs. Management has already warned that these tariffs will push up costs by about $1 billion before tax in fiscal 2026. According to CFO Andre Schulten, even after P&G cuts costs internally, part of this extra burden will still show up on store shelves. More News from Barchart 5 Highest Rated Dividend Kings for Generations of Income Tired of missing midday reversals? The FREE Barchart Brief newsletter keeps you in the know. Sign up now! For investors, P&G has an impressive track record with 70 years of dividend increases, and a reputation as a Dividend King. But with nearly $1 billion in potential tariff costs ahead, will its steady income and strong business model be enough to protect investors from the fallout of these trade pressures? Let's take a look. P&G's Financial Resilience Procter & Gamble (PG) is a leader in the consumer products space, selling everyday names like Tide, Pampers, and Oral-B. Its business depends on delivering essentials at scale and staying up to date with what customers want. Still, the last year hasn't been easy for the company. The stock has dropped 9% over the past 52 weeks and is down 10% since the start of 2025. Even so, PG stock is still priced at a premium to many others in the sector. Its forward price-to-earnings ratio is 21.83, while the sector average sits at 16.32. This shows investors still see value in P&G's brand strength and steady track record. Looking at the latest numbers, P&G pulled in $84.3 billion in sales for fiscal 2025, with earnings per share up 8% to $6.51. In the most recent quarter, sales reached $20.9 billion and earnings per share climbed 17% to $1.48 compared to last year, thanks to cost savings and better profit margins, even as the company worked through restructuring and global challenges. Operating cash flow came in strong at $5 billion, and free cash flow productivity hit 110%. The Growth Pillars Keeping P&G Afloat Procter & Gamble is making big changes behind the scenes this year, cutting up to 7,000 non-manufacturing jobs and aiming for more than $1.5 billion in annual cost savings by 2026. The goal is to make the company quicker on its feet so it can keep up with what shoppers want and adjust rapidly to new trends. On the product side, there's still a steady flow of new ideas, like the eco-friendly Tide EVO, and P&G is also moving into new areas with Zevo pest control and Spruce for lawn and garden care, looking for fresh ways to grow outside its usual business lines. However, in this market, PG's reputation for reliable grocery brands is probably more compelling for investors. All of these efforts are closely tied to P&G's strong record of paying dividends. Steady cash flows and careful cost control help support a dividend yield of 2.81%, more generous than the sector average of 1.89%. The payout ratio is healthy at 60.44%, and P&G has raised its dividend every year for the past 70 years. Analyst Sentiment and the Road Ahead Heading into fiscal 2026, P&G is calling for diluted earnings per share to rise between 3% and 9%, which is slower than what it has posted in previous years. This forecast factors in about $800 million in after-tax costs from the new tariffs, plus another $200 million from higher raw material prices and $250 million because of rising interest and tax expenses. Analysts have reacted quickly to this shift in outlook. JPMorgan just moved its rating on P&G from 'Overweight' to 'Neutral' and cut its price target from $178 to $170, citing worries over slower sales growth. Evercore ISI also trimmed its view, dropping the stock's rating to 'In-Line' and lowering the price target from $190 to $170. Analyst Robert Ottenstein pointed to more competition and doubts about how well P&G can keep its market share and pricing power. Even so, most analysts are still positive on the stock. Out of 24 analysts, the consensus is a 'Moderate Buy,' with an average price target of $173.32. With shares currently at $152.88, that adds up to around 15% expected upside. Conclusion Even with tariffs set to make a dent in future profits, Procter & Gamble's long history of steady dividends and adaptive strategy give income seekers plenty of moat to cling to. While the near-term may feel uncertain, this dividend titan's strong cash flows, trusted brands, and resilience in the face of headwinds suggest that its income stream is sturdy enough to cushion most of the blow. For investors willing to weather some volatility, P&G still offers what few can: blue-chip dependability paired with a dividend that continues to do more than just sweeten the pot. On the date of publication, Ebube Jones did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Sign in to access your portfolio
Yahoo
31-07-2025
- Business
- Yahoo
Unilever's quarterly sales growth beats estimates
(Reuters) -Dove soap maker Unilever beat market expectations for second-quarter underlying sales growth on Thursday, driven by higher pricing. The consumer goods company reported underlying sales growth of 3.8% for the three months ended June 30, compared with 3.6% expected by analysts in a company-compiled poll. Unilever's ice cream business, called The Magnum Ice Cream Company, is on track for demerger in mid-November, the company said. The company, which also owns brands such as Vaseline and Liquid I.V., kept its 2025 forecast unchanged. Unilever reported an underlying operating profit of 5.8 billion euros for the half-year period, slightly ahead of market expectations of 5.7 billion euros. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Reuters
24-07-2025
- Business
- Reuters
UK's Reckitt raises revenue outlook after second quarter beats expectations
July 24 (Reuters) - Consumer goods company Reckitt (RKT.L), opens new tab raised its annual revenue forecast on Thursday after second-quarter net sales growth topped expectations as strength in emerging markets offset weakness in North America and Europe. Shares jumped 10% to their highest level since early 2024 and were headed for their biggest one-day percentage gain since 2000. Reckitt, the maker of Durex condoms and Lysol cleaning products, is pivoting to focus on its 11 so-called "power brands" under CEO Kris Licht, as the sector grapples with weak demand and intense competition. The company reported like-for-like quarterly net revenue growth of 1.9%, compared with 1.7% forecast in a company-compiled consensus. Reckitt also announced a new share buyback programme of 1 billion pounds over the next 12 months. Growth in North America and Europe fell short of expectations, dragged by a challenging consumer backdrop and the expected shelf reset of its flu relief medicine Mucinex due to reformulation. But strong sales in China, India and Latin America made up for weakness in those key markets. Among Reckitt's other well-recognised brands are Strepsils throat lozenges and Harpic bathroom cleaning products. "We delivered excellent growth in emerging markets and navigated a challenging consumer environment in our developed markets," Licht said in a statement. Reckitt raised its 2025 like-for-like net revenue growth forecast for its core business to above 4%, from between 3% and 4% expected earlier. It now expects overall group like-for-like net revenue growth between 3% and 4% for the year, compared with an earlier forecast of 2% to 4% growth. The company last week sold a majority stake in its Essential Home business to private equity firm Advent for $4.8 billion. It is also looking at strategic options for its Mead Johnson division, which is the subject of a number of baby formula lawsuits in the U.S. Reckitt posted operating profit of 1.71 billion pounds ($2.32 billion) for the six months ended June 30, beating analysts' average expectations of 1.66 billion pounds. ($1 = 0.7368 pounds)
Reuters
24-07-2025
- Business
- Reuters
Reckitt's quarterly sales beat expectations on emerging market boost
July 24 (Reuters) - Consumer goods company Reckitt (RKT.L), opens new tab topped second-quarter like-for-like net sales growth expectations on Thursday, helped by strength in emerging markets. The maker of Durex condoms and Lysol cleaning products reported the total group's like-for-like net revenue growth of 1.9% for the quarter, compared with 1.7% expected in a company-compiled consensus. Reckitt raised its 2025 like-for-like net revenue growth forecast for its core business to above 4%, from between 3% and 4% expected earlier. Reckitt posted operating profit of 1.71 billion pounds ($2.32 billion) for the six months ended June 30, above analysts' average expectations of 1.66 billion pounds. "We delivered excellent growth in Emerging Markets and navigated a challenging consumer environment in our Developed Markets," CEO Kris Licht said in a statement. ($1 = 0.7368 pounds)
