The Procter & Gamble Company (NYSE:PG)’s profit beat expectations on Thursday. These soaring profits follow a beat down from activist investor William Ackman, who at the beginning of the month made hits against Procter & Gamble’s leadership style, noting that the company had under-performed in past years.

While analysts expected The Procter & Gamble Company (NYSE:PG) to post profits of 96 cents a share, the household products heavyweight managed to trample on these estimates, after posting earnings of $1.06 a share, representing an increase of 5 cents on a year over year basis.

P&G

Although the Procter & Gamble’s bottom line gave investors a reason to smile, earnings from continuing operations stirred a bearish vibe. These earnings fell from around $3 billion, or $1.01 per share, last year to 96 cents a share, or $2.85 billion, this year.

Net sales on the other hand fell to $20.74 billion, representing a 4 percent dip. Analysts had estimated higher net sales of $20.78 billion. The dip in net sales was, however, cushioned by a 2 percent increase in organic sales (sales that strip out the effects of divestitures, acquisitions and foreign exchange).

Despite its seemingly rosy earnings, The Procter & Gamble Company (NYSE:PG) did not raise its forecast for the fiscal year that commenced in September. This is partly because it plans to enhance marketing support for product launches later in the year. Likewise, the company will have to dig deeper into its pockets for absorbent material for Pampers diapers following a plant explosion in Japan. The explosion affected Nippon Shokubai, a company that produces an essential material for Procter & Gamble’s Pampers. Procter & Gamble’s Chief Financial Officer, Jon Moeller, however, noted that the company had found new sources of the essential material.

In a performance overhaul, The Procter & Gamble Company (NYSE:PG) is cutting down on costs and narrowing in on key markets. Oppenheimer analyst Joe Altobello, however, believes that the cost and innovation standpoint will take time. “While we are encouraged by these results, we continue to believe that the necessary improvements at P&G from both a cost and innovation standpoint will take time, and the stock seems to already reflect further momentum,” he notes.

The performance overhaul has been accelerated in light of Bill Ackman’s remarks at the onset of October. In an interview with CNBC, the activist investor made hits at Procter & Gamble Company (NYSE:PG), citing problems with the company’s goals and leadership. Ackman, whose Perishing Square Capital is P&G’s 10th largest shareholder, noted that the company’s top cream was to blame for the bulging costs and shrinking revenue.