Excerpt from our Wall Street Breakfast, a one-page summary of this morning's key market-moving and stock-moving stories:
A Sparkling Quarter for Procter & Gamble [Business Week]
Summary: Although Procter & Gamble reported a 33% gain in net income and raised its forecast, shares fell 1%. The world's largest consumer-products company says recent acquisition, Gillette, helped propel sales growth 27% to $18.79 million as earnings per share rose to 79 cents from 77 cents last year. Organic sales grew 6%, at the top end of the company's range, while profit margin increased, more than offsetting the expense of the Gillette acquisition. "Looking forward, we expect earnings per share growth to accelerate driven by strong base business results, the ramp-up of Gillette synergies and an improving cost environment," says President, CEO and Chairman of the Board, A.G. Lafley. The 1% drop in share price to $63.14 was attributed to the rise in price before the earnings report, according to Merrill Lynch analyst, Christopher Ferrera who remains bullish on Procter & Gamble.
Related Links: Procter & Gamble F1Q07 (Qtr End 9/30/06) Earnings Call Transcript
Potentially impacted stocks and ETFs: Procter & Gamble (NYSE:PG) • Competitors: Johnson & Johnson (NYSE:JNJ), Kimberly Clark (NYSE:KMB)
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