Consumer products giant Procter & Gamble
The deal has the blessing of Gillette's single largest shareholder, Warren Buffett's Berkshire Hathaway
Earnings came in ahead of expectations, climbing 12% to $2.04 billion, on sales that rose 9% to $14.45 billion. Like rival Kimberly-Clark
Each of the company's business segments delivered top-line growth, ranging from 5% in snacks and coffee to double-digit gains in household care, baby and family care, and beauty care. In the oral care market, where Procter & Gamble's Crest toothpaste and whitening products compete fiercely with Colgate-Palmolive's
With strong growth at the year's midway point (most of it organic), management has decided to lift its second-half outlook and is now forecasting full-year per-share earnings of $2.61 to $2.64. Assuming the merger is completed as planned, the new entity will be a consumer products juggernaut, with a commanding market share lead in a number of categories and $60 billion in annual sales. The larger company would not only pressure rivals, but also have greater clout and more leverage with retailers like Wal-Mart
Throw in an expected $18 billion to $22 billion in stock buybacks over the next 18 months (to mitigate the dilutive impact of shares issued for the merger) and a healthy dividend that has been steadily rising, and Procter & Gamble looks poised to prosper.
Fool contributor Nathan Slaughter owns none of the companies mentioned.
More from The Motley Fool
The Roth IRA Trick Congress Is Planning to Take Away
A key strategy could disappear under tax reform.
What's Going on With Amazon Web Services in China?
In spite of regulatory burdens, Amazon is doubling down in China.
Micron Technology’s Q1 Earnings: What to Watch
Micron stock has cratered, but a turnaround could be around the corner.