1. Procter & Gamble
P&G Fiscal 2014 Fourth Quarter
Are investors looking for Cheer?
Image: Procter & Gamble.
2. • P&G is shooting for 3%-
4% organic revenue
growth this year.
• On track through the
first three quarters of
• Company should hit at
least 3% organic
revenue growth in this
final quarter of the
“Tide on the Shelf” image by Lisa Brewster
under Creative Commons license.
3. • Earnings have not impressed so far in fiscal
• Through the first three quarters, operating
income is up only 2.6% versus prior year.
• Will P&G make up some ground in Q4?
4. • Productivity and
Productivity & Cost Cutting
“Global Ops” image: Procter & Gamble.
5. • P&G measures “free cash flow productivity”
(FCFP): free cash flow divided by earnings.
• FCFP was 120% last quarter.
• Cash flow should still be strong, but look for
Q4 FCFP to be closer to last year’s total
average of 95%, due to anticipated
increased spending on capital equipment.
6. • P&G has kept a fairly leveraged balance
sheet for years.
• Traces back to Gillette acquisition in
• Look for any reduction in the $36.4
billion of long-term debt this quarter.
7. • Bright spots: Double-
digit growth in India
for 47 consecutive
• Hot spots: Any
impacts from Russia
• Sinkholes: Updates
Bright Spots, Hot Spots, & Sinkholes
Duracell marketing in Caracas, Venezuela metro. Image
by Cabruta08 under Creative Commons license.
8. • P&G announced a total
revamp of its North
American supply chain
earlier this year.
• Converting existing single-
category plants into multi-
• Progress in Q4?
9. • Look for update on initial
sales of new Gillette Fusion
ProGlide with Flexball razor.
• Analysts will be eager to
hear about innovation
pipeline for fiscal 2015.
Fusion ProGlide with Flexball image:
Procter & Gamble.
10. • Share buybacks
should be winding
billion in Q4.
• No surprises
Dividend and Share Repurchases
P&G Research Facility, Singapore. Image: Procter & Gamble.
11. Top dividend stocks for the next decade
The smartest investors know that dividend stocks simply crush their non-dividend
paying counterparts over the long term. They also know that a well-constructed
dividend portfolio creates wealth steadily. Our top analysts put together a report on
a group of high-yielding stocks that should be in any income investor’s portfolio. To
get our free report on these stocks, just click here now.