We’re exiting our position in a household products giant after a soft quarter
We will exit our position in Procter & Gamble shortly after the opening bell and sell 200 shares at approximately $144. Following the trade, Jim Cramer’s Charitable Trust will no longer have a position in PG. Procter & Gamble shares are falling roughly 3%, or $4.50 per share, in premarket trading following a mixed quarterly earnings report. Organic sales growth was flat, missing analysts’ forecasts for growth of about 2%. The company’s Beauty segment, home to brands such as Head & Shoulders, Pantene and Old Spice, was the only category to record positive organic sales growth. As a result, earnings per share fell 3% year over year to $1.43, but that was slightly above analysts’ forecast of $1.41, according to LSEG data. As we previewed on Tuesday when we sold 100 shares at about $151, expectations for the new fiscal year 2027 were soft. The company expects organic sales growth in the range of 1% to 3%, in line with analysts’ forecast for growth of around 2%. Procter also expects earnings per share to be between $6.89 and $7.11; This is below the $7.02 consensus at the $7.00 midpoint. The company forecast an after-tax downside of approximately $1 billion in fiscal 2027 due to higher raw material, energy and transportation costs. This is a drag on the appearance of EPS. As Procter has historically been a fairly conservative company, this outlook may be revised higher over time, particularly if the Iran war reaches a permanent conclusion and leads to a sustained decline in energy and input costs. But we were looking for better growth in this company under CEO Shailesh Jejurikar, who took over in January. We are only at the beginning of Jejurikar’s term and while we will not completely rule out his plan to re-accelerate growth, we prefer to monitor his progress from afar. From this sale, we will realize a small loss of less than 1% on shares purchased between November 2025 and March 2026. We launched the position last fall as a defensive hedge. Below is a closer look at P&G’s fourth-quarter performance across key metrics and segments, as well as Wall Street expectations: (See here for the complete list of stocks in Jim Cramer’s Charitable Trust.) When you subscribe to the CNBC Investment Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trading alert before buying or selling a stock in his charitable foundation’s portfolio. If Jim talked about a stock on CNBC TV, he would wait 72 hours after issuing the trading alert before executing the trade. THE ABOVE INVESTMENT CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY, TOGETHER WITH THE DISCLAIMERS. NO CIVIL OBLIGATIONS OR DUTIES EXIST OR SHALL ARE RESULTING FROM YOUR RECEIVING ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTMENT CLUB. NO SPECIFIC RESULT OR PROFIT CAN BE GUARANTEED.
