Procter & Gamble Profit Tops Expectations: Ahead of the Ticker

NEW YORK ( TheStreet) -- Household products maker Procter & Gamble ( PG) reported fourth-quarter profit that beat Wall Street expectations.

The results are the first since Chief Executive Officer A.G. Lafley rejoined P&G two months ago.

P&G reported net income that fell 48% to $1.88 billion, or 64 cents a share, from the same period a year ago. Excluding items, P&G said its profit came to 79 cents a share, beating analysts' estimates of 77 cents, according to Thomson Reuters.

Sales rose 2.2% during the period to $20.66 billion, surpassing analysts' expectations of $20.55 billion.

The company has been in the midst of a turnaround plan that has reorganized its product segments and aims to save $10 billion in costs by fiscal 2016. Lafley, who was previously CEO of P&G from 2000 to 2009, returned to the helm on May 23, replacing CEO Bob McDonald.

Looking ahead, the company said it expects fiscal-year earnings of $4.25 a share to $4.33 a share, a rise of 5% to 7%. Analysts expect earnings of $4.32 a share.


Royal Dutch Shell ( RDS.A) reported a 20% drop in second-quarter earnings, as challenges in Nigeria and impairment charges weighed on results.

Shell reported profit that fell to $4.6 billion during the quarter, excluding items, from $5.7 billion a year ago. The results missed analysts' expectations for profit of $6 billion and was the company's largest miss since 2008.

The company reported net profit of $1.74 billion, down from $4.08 billion in the same period last year, dragged down by a $2.2 billion impairment charge on its shale oil assets in North America.

The oil company has also experienced losses in Nigeria due to theft and other attacks on its operations.

CEO Peter Voser, who is set to retire next year, also attributed higher costs, exploration charges and adverse currency exchange rate effects to the lower-than-expected results.

Voser will be replaced by Ben van Beurden, who currently is the head of the company's refining and chemicals marketing businesses.


Starbucks ( SBUX) is dropping AT&T ( T) as its Wi-Fi service provider and turning to Google ( GOOG), which has said it can offer speeds up to 10 times faster than AT&T.

Google said it will provide wireless Internet in 7,000 U.S. Starbucks locations, beginning in new Starbucks stores over the next month. The service will then roll out to other locations across the country, beginning in the busiest locations where Wi-Fi is used the most.

Google said it will team up with telecom company Level 3 Communications in the effort.

According to a blog post by Kevin Lo, a Google general manager, Wi-Fi speeds could be up to 100 times faster than AT&T's service in cities where the high speed fiber optic network Google Fiber is available.

Google and Starbucks also plan to create a new version of Starbucks Digital Network, which provides news content at the coffee chain's various locations.

Financial terms of Starbucks' partnership with Google were not disclosed. Google's Wi-Fi service will continue to be free to Starbucks customers.


The chatter on Main Street (a.k.a. Google, Yahoo! and other search sites) is always of interest to investors on Wall Street. Thus, each day, TheStreet compiles the stories that are trending on the Web, and highlights the news that could make stocks move.

-- Written by Brittany Umar.

Brittany joined TheStreet.com TV in November 2006 after completing a degree in Journalism and Media Studies at Rutgers College. Previously, Brittany interned at the local ABC affiliate in New York City WABC-TV 7 where she helped research and produce On Your Side, a popular consumer advocacy segment.

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