P&G Beats Expectations

Procter & Gamble(PG Quote) beat Wall Street's expectations with its fiscal third-quarter results, as the household products maker said sales growth and cost controls offset higher commodity costs.

The Cincinnati, Ohio-based company posted a net profit of $2.71 billion, or 82 cents a diluted share, vs. $2.51 billion, or 74 cents a diluted share, in the year-ago period. Analysts polled by Thomson Financial had expected earnings of 81 cents a share.

P&G reported net sales of $20.46 billion, a 9% jump from a year ago. Analysts had forecast $20.43 billion in sales.

"This quarter is yet another demonstration of the power of P&G's product category and geographic diversification and disciplined focus on cash and cost productivity," Chairman and CEO A.G. Lafley said in a company statement. "P&G delivered strong results in line with long-term targets in a challenging economic and competitive environment with broad-based sales and share growth, earnings growth and overhead cost improvement."

The company increased its full-year outlook. It now sees a profit of $3.48 to $3.50, up from its prior guidance range of $3.46 to $3.50. That's in line with analysts' profit expectation of $3.49 a share. The company cited "strong" third-quarter results for the optimism.

Shares were rising 2.8% to $67.71 in recent premarket trading.

Consumer goods rival Colgate-Palmolive(CL Quote) shares were falling after the company saw profits sag on restructuring charges Wednesday morning.

Cosmetics maker Avon Products(AVP Quote) also saw shares dip Tuesday, after missing profit expectations. Alberto-Culver(ACV Quote) missed top-line expectations Monday.

Other household product makers Johnson & Johnson(JNJ Quote), Estee Lauder(EL Quote) and Kimberly Clark(KMB Quote) were mixed in trading Tuesday.