Is P&G taking Nelson Peltz's advice for a rebound?
Just a little over a year after P&G struck an uneasy peace with the hedge fund investor, is P&G on track to deliver a turnaround ?
Is P&G taking Nelson Peltz's advice for a rebound? Just a little over a year after P&G struck an uneasy peace with the hedge fund investor, is P&G on track to deliver a turnaround ? Check out this story on cincinnati.com: https://www.cincinnati.com/story/money/2019/01/22/is-p-g-taking-nelson-peltzs-advice-for-a-rebound/2594664002/
Alexander Coolidge, Cincinnati Enquirer Published 6:57 a.m. ET Jan. 22, 2019 | Updated 6:57 a.m. ET Jan. 22, 2019
Procter & Gamble's stock has rebounded from a rocky 2018.
The Cincinnati-based consumer product giant has also unveiled eye-catching advertising and new products. It's also made a string of strategic acquisitions.
Just a little over a year after P&G struck an uneasy peace with hedge fund investor Nelson Peltz, is P&G finally on track to deliver the turnaround its sought for most of this decade?
Analysts say P&G still has a long way to go to reignite steady sales growth, despite the company's stock hitting an all-time high (adjusted for splits) of $96.90 last month.
While the company delivered the strongest quarter in five years in October, executives took pains not to label it a breakthrough following a year of turnaround and tepid growth.
Analysts say the company's stock is likely benefitting from market jitters as trade tensions and recession fears prompt a "flight-to-safety" shift by some investors to stable sectors, including companies like P&G, which sell consumer staples.
In November, P&G seemed to take a page from Peltz when it announced a restructuring of business units.
"It's a controlled response to suggestions by Peltz," said Terry Kelly, principal at Cincinnati-based Barlett & Co., noting the investor lambasted P&G's "bureaucracy" during his 2017 campaign for a board seat.
Kelly said P&G delivered a solid first quarter, but needs to generate several more before anyone declares the company fixed.
P&G will update investors on its turnaround progress on Wednesday when it reports its second-quarter results.
Wall Street expects the Cincinnati consumer products giant to generate a $3.2 billion profit before one-time items on sales of $17.2 billion, according to Zacks Investment Research, a Chicago firm. Last year, P&G reported a $2.5 billion profit on sales of $17.4 billion for the same period.
Here's what to look for in the report:
Enhance your skin's appearance and reduce unevenness over time with Opté. Skincare just got smarter, but that's just the start. We're always innovating our products to improve your everyday life. #PGLifeLab#CEShttps://t.co/nhwVRVAy57pic.twitter.com/SNOTJMIP9r
— P&G (@ProcterGamble) January 11, 2019
We're joining forces with @tristanwalker and @walkercobrands to better serve consumers of color around the world. Learn more about @bevel and @formbeauty , which are joining the P&G family of brands. https://t.co/jwAdyC905Wpic.twitter.com/yYV9YXpmu0
— P&G (@ProcterGamble) December 12, 2018
Procter & Gamble is based in Cincinnati. (Photo: Enquirer file/Cara Owsley)
For the latest on P&G, Kroger, Fifth Third Bank and Cincinnati business news, follow @alexcoolidge on Twitter.
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