Procter & Gamble earnings preview

The company is expected to show lower earnings mostly as a result of consumers cutting back on name brand goods due to the recession. As shoppers look for every way to cut back on their expenses, they have been buying more store brand items which has hurt sales of big named P&G products such as Tide detergent, Bounty paper towels, and Pampers diapers, to name a few.

Last month the company headed in a new direction with veteran executive Bob McDonald taking over as CEO. One of McDonald's main objectives is to increase the company's exposure in emerging markets. Developing countries account for about half of the company's sales growth.

In order to help the company better adjust to the current market place, McDonald has stated that he plans to make the company more agile by cutting costs and streamlining the company's business.

Analyst take: SunTrust Robinson Humphrey analyst William Chappell is bullish on the stock. He has a "buy" rating on the stock, and thinks that Procter & Gamble should benefit from lower commodity costs in the fourth quarter. Chappell told his clients that what analysts will really be looking for more information on how the company sees its business doing in 2010.

The stock fell a bit today ahead of tomorrow's open, with shares falling 0.2% to $55.50, down $0.11.