Political Unrest, Natural Disaster Takes Toll on P&G

Sometimes, being a multinational can cause multiple problems. With the disaster in Japan and unrest in the Middle East, Citigroup has lowered its earnings per share estimates on Procter & Gamble Co. stock but maintained its “buy” rating with a $69 target price.

Analyst Wendy Nicholson cited several factors that contributed to lower expectations for the remainder of P&G’s fiscal 2011 (June) and in fiscal 2012: higher oil prices, lower sales in the Middle East, North Africa and Japan due to political unrest and natural disasters, competitive pricing, and weak U.S. consumer spending.

Citi’s new fiscal 2011 EPS estimate of $3.89 is down 4 cents, at the low end of P&G’s guidance and below the current average of industry analysts. For fiscal 2012, its estimate dropped 16 cents to $4.14.

P&G’s stock closed Monday at $61.35, down 14 cents. It was down another 92 cents in pre-market trading Tuesday.