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Consumer goods conglomerate Procter & Gamble (PG - Free Analyst Report) has reported fiscal 2010 fourth-quarter and full-year (ended June 30th) results. Revenues advanced 5% in the closing quarter, to $18.9 billion, and 3% for the year, to $78.9 billion. Although share net slipped 8% year over year in the June period, to $0.72, the full-year tally represented an improvement. In fact, the $3.67 a share P&G registered came in just ahead of our call of $3.60 and the $3.58 delivered in fiscal 2009.

Soft macroeconomic conditions overshadowed the household products maker's progress for much of fiscal 2010. However, the top line was bolstered by efforts to capture additional market share through product innovation, increased marketing expenditures, and a concentrated global growth campaign. Ongoing cost-cutting initiatives and productivity improvements helped expand operating margins and support bottom-line growth.

In addition, the company has been taking a closer look at its product portfolio. Over the past few quarters, Proctor & Gamble sold the Folgers coffee brand and divested its pharmaceutical division, as well as its Actonel osteoporosis treatment. Looking ahead, we think that the conglomerate will continue to prune its peripheral businesses. Still, management may eye acquisitions to replace lost income and complement its core ventures.

All told, we think these efforts, coupled with modestly better macroeconomic conditions, will be accretive to near-term results. We look for earnings to advance 8% in fiscal 2011, to $3.95 a share.

The company’s heightened marketing spend seems to have left some investors with an unsettling feeling, though. Indeed, despite the solid net-profit growth Proctor & Gamble anticipates this fiscal year, this stock sold off following the earnings release.

About The Company: The Procter & Gamble Company makes detergents, soaps, toiletries, foods, paper, & industrial products. Brands include: Always, Head & Shoulders, Olay, Pantene, Wella, Dawn, Downy, Tide, Bounty, Charmin, Pampers, Iams, Pringles, Gillette, MACH3, Braun, and Duracell. Acquired Gillette in October, 2005, and divested Folgers in June, 2009. U.S. sales accounted for 39% of total last year, while Wal-Mart Stores accounted for 15%. Three operating segments are Beauty Care, Health & Well Being, and Household products.