NEW YORK (TheStreet) -- Procter & Gamble (PG) shares are down -1% to $78.83 on Monday after the company announced that it planned to sell up to 100 brands over the next two years in an effort to reduce costs.
The remaining 70-80 core brands that will remain after the restructuring account for about 90% of the company's revenue and over 95% of its profits over the past three years, according to the company.
On Friday, the company reported a 37% increase in second quarter earnings to 89 cents per diluted share, although net sales declined 1% from the year ago period.
TheStreet Ratings team rates PROCTER & GAMBLE CO as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate PROCTER & GAMBLE CO (PG) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its increase in net income, good cash flow from operations, growth in earnings per share, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself."
Highlights from the analysis by TheStreet Ratings Team goes as follows: