2 Stocks Hitting Trading Screens After Earnings
Constellation Brands Inc. (NYSE:STZ) reported net income above Wall Street’s expectations for the second quarter. Net income for the beverage company rose to $162.7 million (76 cents per share) vs. $91.3 million (39 cents per share) in the same quarter a year earlier. This marks a rise of 78.2% from the year earlier quarter. Revenue fell 20% to $690.2 million from the year earlier quarter. STZ beat the mean analyst estimate of 66 cents per share. It beat the average revenue estimate of $667.9 million.
“The underlying fundamentals of our business remain solid. We are investing additional resources behind key brands and routes to market while implementing changes to achieve cost savings and drive operational efficiencies. I am particularly pleased with our quarterly results in the areas of free cash flow generation and margin improvement,” said Rob Sands, president and chief executive officer, Constellation Brands.
Competitors to Watch: Castle Brands Inc. (AMEX:ROX), Diageo plc (NYSE:DEO), Willamette Valley Vineyards, Inc. (NASDAQ:WVVI), Anheuser-Busch InBev (NYSE:BUD), The Boston Beer Co (NYSE:SAM), Molson Coors Brewing Co. (NYSE:TAP), Craft Brewers Alliance, Inc. (NASDAQ:HOOK), Compania Cervecerias Unidas S.A. (NYSE:CCU), Scheid Vineyards Inc. (SVIN), Heineken N.V. (HINKY), and Fortune Brands, Inc. (NYSE:FO) (NYSE:BEAM).
Helen of Troy Limited (NASDAQ:HELE) reported higher profit for the second quarter as revenue showed growth. Net income for Helen of Troy Limited rose to $23.6 million (74 cents per share) vs. $23.5 million (75 cents per share) in the same quarter a year earlier. This marks a rise of 0.5% from the year earlier quarter. Revenue rose 58.7% to $277.4 million from the year earlier quarter. HELE fell short of the mean analyst estimate of 86 cents per share. It fell short of the average revenue estimate of $288.8 million.
Gerald J. Rubin, Chairman, Chief Executive Officer and President, commenting on the Company’s results, stated “We are extremely pleased with our record sales and record earnings for the second quarter and year to date in a difficult retail environment. Operating income increased by 9.7 and 21.1 percent for the three- and six-months ended August 31, 2011. The integration of Kaz continues to progress well and according to our expectations. The impact of seasonality on our consolidated results has become more pronounced with the addition of our new Healthcare / Home Environment segment. We expect that a significant portion of the new segment’s operating income will be earned in the last two quarters of the fiscal year.”
Competitors to Watch: Deer Consumer Products, Inc. (NASDAQ:DEER), Jarden Corporation (NYSE:JAH), iRobot Corporation (NASDAQ:IRBT), Global-Tech Advanced Innovations Inc. (NASDAQ:GAI), The Procter & Gamble Co. (NYSE:PG), Church & Dwight Co., Inc. (NYSE:CHD), Colgate-Palmolive Company (NYSE:CL), The Clorox Company (NYSE:CLX), Kimberly-Clark Corporation (NYSE:KMB), Johnson & Johnson (NYSE:JNJ), Teva Pharmaceutical Industries Ltd (NASDAQ:TEVA), CCA Industries, Inc. (AMEX:CAW), and Zep, Inc. (NYSE:ZEP).