Procter & Gamble Posts Excellent Quarterly Results

Procter & Gamble reported solid growth and profits in its first quarter which ended September 30 due in part to its recent acquisition of razor company Gillette. Net earnings increased 33 percent to $2.7 billion. Earnings per share totaled 79 cents and sales climbed 27 percent to $18.79 billion.

The company is the manufacturer of brands including Pampers diapers, Tide detergent, Crest Toothpaste, Head & Shoulders Shampoo, and Iams dog food among others. Projected profits for the second quarter total 81 to 83 cents a share.

The chairman, president, and chief executive of Procter & Gamble, Alan Lafley, said, "The company delivered broad-based growth behind strong innovation on both the base business and Gillette. We are delivering our growth commitments and continue to make good progress with the Gillette integration. 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."

In spite of these numbers, described by some reports as "sparkling," shares in Procter & Gamble fell approximately one percent to $63.14 in trading on Tuesday, October 31. The 52-week high for the stock was actually posted on October 30 at $64.02.

In response to the report Merrill Lynch analyst Christopher Ferrara kept a buy recommendation on the stock whereas Loran Braverman at Standard & Poor's Equity Research emphasized a strong buy recommendation. Bill Chappell with SunTrust Robinson Humphrey also issued a buy rating and said, "I think they're setting the bar low as they move forward."