Earnings Recap: Proctor and Gamble, Washington Post, and AES Lift Stocks
Proctor and Gamble (NYSE:PG): Procter & Gamble Co. sells and markets consumer products such as pharmaceuticals, cleaning supplies, personal care, and pet supplies in more than 180 countries. Net income for P&G rose to $2.51 billion (84 cents per share) vs. $2.19 billion (71 cents per share) in the same quarter a year earlier. This marks a rise of 14.9% from the year earlier quarter. Revenue also rose 10.2% to $20.86 billion from the year earlier quarter. The company beat the mean analyst estimate of 82 cents per share. Analysts were expecting revenue of $20.63 billion. PG stock gained 2.00% in trades.
“We are pleased with the strong top- and bottom-line performance in the quarter,” said Chairman of the Board, President and Chief Executive Officer Bob McDonald. “We delivered organic sales growth of five percent and earnings per share growth of 18 percent in a challenging environment, driven by our ongoing commitment to make a difference in the everyday lives of the world’s consumers.”
Competitors to Watch: Church & Dwight Co., Inc. (NYSE:CHD), Colgate-Palmolive Company (NYSE:CL), The Clorox Company (NYSE:CLX), Kimberly-Clark Corporation (NYSE:KMB), and Johnson & Johnson (NYSE:JNJ).
Washington Post Company (NYSE:WPO): Washington Post operates as a diversified education and media company. Net income for the media company fell to $45.6 million ($5.74 per share) vs. $92 million ($10 per share) a year earlier. This is a decline of 50.5% from the year earlier quarter. Revenue also fell 10% to $1.07 billion from the year earlier quarter. WPO fell short of the mean analyst estimate of $5.87 per share. Analysts were expecting revenue of $1.09 billion. The stock rose 3.74% in trading Friday.
Competitors to Watch: Career Education Corp. (NASDAQ:CECO), The Princeton Review, Inc (NASDAQ:REVU), Apollo Group, Inc. (NASDAQ:APOL), DeVry Inc. (NYSE:DV), Gannett Co., Inc. (NYSE:GCI), Corinthian Colleges, Inc. (NASDAQ:COCO), and Strayer Education, Inc. (NASDAQ:STRA).
The AES Corporation (NYSE:AES): AES Corporation is a global generator and distributor of electrical power. Its two primary types of businesses generation and utilities. Net income for the company rose to $174 million (24 cents per share) vs. $144 million (18 cents per share) in the same quarter a year earlier. This marks a rise of 20.8% from the year earlier quarter. Revenue rose 16% to $4.54 billion from the year earlier quarter. AES reported an adjusted EPS of 28 cents, topping the mean analyst estimate of 24 cents per share. It beat the average revenue estimate of $3.58 billion. The stock closed with gains of 0.65%.
“Compared to the first quarter of this year, adjusted earnings per share growth reflects improvements in existing operations, as well as income from new construction projects and our recent acquisition in Northern Ireland. In addition, I am pleased with our recent progress on our remaining construction projects and we remain on track to achieve our 2011 guidance,” said Paul Hanrahan, AES President and Chief Executive Officer. “Our pending acquisition of DPL has been progressing on schedule and is expected to close later this year or early next year. During the quarter, we closed $2.05 billion in AES recourse financing in anticipation of the transaction’s near-term close, allowing us to take advantage of current market interest rates as we had assumed at the time of announcement. We also received early termination of the Hart Scott Rodino Act waiting period; DPL has now set September 23, 2011 as the date for their shareholder vote on the transaction,” said Victoria D. Harker, Executive Vice President and Chief Financial Officer.