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Earnings preview: P&G's 1Q results

NEW YORK (AP) -- Procter & Gamble Co.'s fiscal first-quarter earnings report should give indications on how its plan of focusing on its most profitable markets and product categories is playing out globally.

The world's largest consumer products maker's earnings per share and revenue are both expected to drop compared with a year ago. It reports before the market opens on Thursday.

WHAT TO WATCH FOR: The Cincinnati-based company, whose products range from Tide detergent to Crest toothpaste and Gillette razors, has admitted missteps in pricing and balancing growth in emerging markets, which make up about 30 percent of its sales, with the realities of an uncertain global economy and lackluster market share growth.

Analysts will be looking for an update on how P&G is progressing with its plan to focus on its 40 top businesses, 20 biggest new products and 10 most profitable emerging markets, announced in May, even as it is undergoing a cost cutting plan aimed at saving $10 billion by fiscal 2016.

The pressure is on. Activist investor William Ackman has disclosed he has a 1 percent stake in the company. He has agitated for change at companies including Target Corp. and J.C. Penney Co.

WHY IT MATTERS: P&G's well-known products appeal to people at many income levels around the world, so the company's performance hints at how willing and able people are to spend.

Its status at the top of the consumer-goods hierarchy also means P&G's strategy can be a bellwether for the rest of the industry.

EXPECTATIONS: Analysts polled by FactSet, on average, expect P&G to report earnings of 96 cents per share on revenue of $20.77 billion for the July-through-September period.

LAST YEAR: In the same period a year ago, P&G earned $1.03 per share on revenue of $21.92 billion.