The Procter & Gamble Company (NYSE:PG) posted better than expected fourth quarter results on Thursday as profits fell less than expected. It indicates that the consumer products giant is making healthy progress under CEO A.G. Lafley. Procter & Gamble Co. (NYSE:PG)’s earnings excluding one-time items declined 4% from 82 cents to 79 cents a share. That was better than the company’s own guidance of 69 cents to 77 cents and Wall Street consensus of 77 cents.

Procter & Gamble

The A.G. Lafley Effect

Revenues for the quarter rose 2% to $20.66 billion from $20.21 billion in the same period last year. Analysts polled by Thompson Reuters were expecting $20.55 billion in revenues. The Procter & Gamble Company (NYSE:PG) CFO Jon Moeller told Matthew J. Belvedere of CNBC that he feels good after the return of A.G. Lafley at the helm, and feels optimistic about the company’s future.

For the full year 2013, The Procter & Gamble Company (NYSE:PG)’s revenues jumped 1% from $83.68 billion to $84.17 billion. Net income jumped 5% to $3.86 per share or $11.31 billion. The company had earned $3.66 a share or $10.76 billion in the same period last year. Net income was calculated after paying preferred dividends.

The company is undergoing a massive restructuring to generate at least $10 billion in cost savings by 2016. Last year, hedge fund manager Bill Ackman acquired a large stake in the world’s largest FMCG company and started pushing for a management change. On May 23, 2013, The Procter & Gamble Company (NYSE:PG) fired CEO Bob McDonald and brought back A.G. Lafley, who led the firm from 2000 to 2009.

Procter & Gamble FY14 Forecasts

For the full year 2014, The Procter & Gamble Company (NYSE:PG) forecasts organic sales growth of 3% to 4%, while global FMCG market is expected to grow at 3.5%. P&G expects core earnings to rise between 5% to 7%, similar to 2013 growth. The EPS forecasts include a 6% negative forex impact.

The Procter & Gamble Company (NYSE:PG) shares surged 1.82% to $81.75 at 10:26 AM EDT.