Energizer (NYSE: ENR), the famous battery company that competes with Procter & Gamble (NYSE: PG), reported Q2 earnings earlier today. According to this source, the results beat expectations on an adjusted basis. Energizer earned $1.12 per share. Analysts thought the business would do three pennies less.

Revenues, however, didn't fare so well. They fell 7%. Not only did the economy affect sales, but the dreaded currency-translation phantom that has been haunting the top lines of all businesses that are exposed to international transactions made its dreaded appearance on Energizer's earnings report. A conservative stance on the part of retailers and their inventory levels was also mentioned as a negative driver for sales in the release.

Procter & Gamble (NYSE: PG) closed at $70.91.

• On 10/1/07 The Financial Times Merger Market reported PG is looking to sell its Duracell unit, as well as its Pringles and Folgers units according to sources close to the matter.
  
• PG overall option implied volatility of 19 is near its 26-week average of 18 according to Track Data, suggesting non-directional risk.

Hershey (NYSE: HSY) closed at $47.41.

• HSY Chairman and CEO Rick Lenny resigned.
  
• Alex Brown says: "We retain our Hold opinion, but lower our target from $48 to $45. With CEO Lenny leaving at 2007-end, we believe fundamental pressures and less likelihood of sale point to a lower valuation."
  
• HSY overall option implied volatility of 23 is near its 26-week average of 22 according to Track Data, suggesting non-directional risk.

Daily options Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.

Procter & Gamble Co. (NYSE: PG) today reported strong fiscal fourth quarter profits, improving margins and raised a stock buyback. Shares are rising in pre-market action even though the world's largest consumer products company also gave disappointing earnings guidance.

Profit rose 19% to $2.3 billion, or 67 cents per share, from $1.9 billion, or 55 cents, helped by gains in Blades & Razors, Fabric & Home Care and Beauty and Health Care. Revenue rose 8% to $19.3 billion. Results beat analysts' forecasts which called for profit of 66 cents on revenue of $19.11 billion.

Procter & Gamble also announced plans to repurchase between $24 billion and $30 billion worth of company shares over the next three years, at about $8 billion to $10 billion a year. This represents an increase over the $5.6 billion acquired in the last fiscal year.

"They're not shooting the lights out, but they're doing the right things to increase sales,'' Procter & Gamble shareholder John Kornitzer, chief investment officer at Kornitzer Capital Management, told Bloomberg News.

Earnings will be $3.44 to $3.47 for the current fiscal year, which is below the $3.47 analysts had expected. Sales are expected to rise between 5 to 7%. Analysts were expecting a rise of 5.8%, according to Thomson Financial.

The 88-cent to 90-cent profit forecast for the quarter, lags the 91 cents Wall Street had expected. Procter & Gamble sees sales rising 6 to 8 percent while analysts saw a gain of 6%.

Procter & Gamble Co. (NYSE: PG) currently owns dozens of brands, many of which are household names. From Pampers to Pringles, Crest to Cover Girl, the consumer-products giant has a foothold in many industries, and its 2005 purchase of Gillette merely added to this list. (For a summary of the company's current product lines, click here.)

Now, there is some speculation on Wall Street as to whether Procter & Gamble will sell off some of its brands in an effort to streamline operations and return cash back to company shareholders. While it is pure conjecture at this point -- company officials have not said publicly that they are considering spinning off any brands -- Lehman Brothers analyst Lauren Lieberman told The New York Times that she suspects "there has been an active dialogue within P&G about if, when, and what pieces of its portfolio should be pruned via sale or spin."

Ms. Lieberman ran the numbers, and it appears as though the most likely brands for sale consideration are Duracell, Braun, Folgers (and other coffee), and Pringles (along with other snack lines). The company's pet-food business (which includes the Iams brand) could also be put on the auction block.

Duracell could fetch as much as $4.1 billion (in after-tax proceeds) at auction, while Braun could attract up to $1.5 billion. The snacks and coffee units are both valued around $4.1 billion, while the pet-food business could be sold for $2 billion, Ms. Lieberman said.

Beth Gaston Moon is an analyst at Schaeffer's Investment Research.