01:31 PM EDT, 04/08/2024 (MT Newswires) -- Procter & Gamble ( PG ) is expected to report soft fiscal Q3 organic sales growth of 3.4%, below the 3.8% consensus forecast due to China beauty category weakness and Middle East pressure, Morgan Stanley said in a note.

The brokerage said, in a Sunday note, it expects a 2.4% earnings per share upside for the consumer goods producer, driven by a 116 basis points gross margin improvement.

EPS for the quarter is expected to reach $1.44, surpassing the consensus estimate of $1.41. EPS for the full year is forecasted at $6.45, Morgan Stanley added.

The brokerage expects mixed segment results for the company, with a downside in Beauty operating segment growth at 0.8%, a 2% growth in Healthcare, and a growth of 5% each in the Grooming and Baby/Family care categories.

Regionally, the brokerage forecasts a 4% growth in North America and a 14% increase in Latin America, countered by a 12.5% decline in China.

Morgan Stanley assigned an overweight rating to the company's stock and a price target of $174.

Proctor & Gamble is scheduled to announce fiscal Q3 results on April 19.

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