Retailers don't like competition. As it is, they get enough of it from each other in the pursuit of razor-thin margins. It's standard practice to squeeze manufacturers for lower prices and more concessions as part of this battle.

For years, it's also been the norm for retailers to push back on manufacturers' direct-to-consumer models, as it gives consumers one less reason to enter the store, results in smaller basket sizes and greater pressure on wallet share. When a consumer product giant decides to bypass the retailers, eyebrows rise across the consumer business industry, with manufacturers thinking about new revenue possibilities while retailers worry that other product companies will follow.

As with the consumers to whom it sells, Procter & Gamble Co. (NYSE: PG) has weathered tough times in recent months. The Cincinnati company saw revenues fall and volumes squeezed (not unlike its trademark Charmin bath tissue) as recession-weary shoppers continued to rein-in expenses and begged off buying pricier goods.

Still, following a year in which the company faced one of the most difficult macroeconomic environments in decades, P&G surprised analysts Thursday by reporting fiscal first-quarter earnings of $3.31 billion, or $1.06 a share, compared with $3.35 billion, or $1.03 a share, a year earlier. Analysts polled by Zacks.com anticipated the company would earn just 97 cents a share.

Procter & Gamble (NYSE: PG) is going to be reporting its fiscal fourth quarter earnings tomorrow before the market open.

Going into tomorrow's earnings announcement analysts are expecting to see the company report earnings of 79 cents per share. For the same period last year the company had earnings of 92 cents per share.

Procter & Gamble Co. (NYSE:PG) posted strong fourth-quarter results thanks to Fusion razors and Tide detergent. It also raised its forecast for the year.

Net income was $2.86 billion, or 84 cents a share compared with $2.55 billion, or 72 cents, a year earlier. Sales rose 7.6 percent to $19.7 billion in the three months through December, the slowest pace in five quarters, according to Bloomberg News. This beat the consensus views of 83 cents profit and revenue of $19.57 billion.

The company increased its 2007 profit forecast to $2.99 to $3.03 a share from its earlier projection0n of $2.97 to $3.02. Analysts were predicting $3.02 per share, according to Thomson Financial. Shares fell in pre-market trading,

Clearly, 2005's acquisition of Gillette Co. is paying off for Procter & Gamble as is the cost-cutting undertaken by the management team. Sales of razors rose 11 percent to $1.28 billion. Fabric care and home care net revenue soared 11 percent to $4.68 billion .Baby Care and Family Care rose five percent to $3.12 billion, while Snacks, Coffee and Pet Care rose 3 percent to $1.25 billion.

Another positive for the company is the growing confidence of U.S. consumers. Lower energy prices helped push up consumer sentiment in January to higher levels than economists had expected.

Also check out some other earnings reports that we're following, and let us know what you're expecting.