Fortune Brands Earnings Cheat Sheet: Profit Rises for Third Straight Quarter

Falling revenue did not prevent S&P 500 (NYSE:SPY) component Fortune Brands, Inc. (NYSE:FO) from reporting a profit boost in the second quarter. Fortune Brands, Inc. manufactures and sells distilled spirits, home and hardware products and golf products.

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Fortune Brands Earnings Cheat Sheet for the Second Quarter

Results: Net income for Fortune Brands, Inc. rose to $328.6 million ($2.09 per share) vs. $227.4 million ($1.48 per share) in the same quarter a year earlier. This marks a rise of 44.5% from the year earlier quarter.

Revenue: Fell 10.1% to $1.59 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: FO reported adjusted net income of 93 cents per share. By that measure, the company fell short of mean estimate of 97 cents per share. It fell short of the average revenue estimate of $1.94 billion.

Quoting Management: As we approach the planned separation of our two remaining businesses, both Beam and Home & Security are outperforming their markets and will be ready to hit the ground running on Day One as independent companies,” said Bruce Carbonari, chairman and chief executive officer of Fortune Brands.

Key Stats:

The company has now seen net income rise in three straight quarters. In the first quarter, net income rose 12.5% and in the fourth quarter of the last fiscal year, the figure rose more than sevenfold.

A year-over-year revenue decrease last quarter snaps a streak of four consecutive quarters of revenue increases. The best quarter in that span was the second quarter of the last fiscal year, which saw revenue rise 9.5%.

The company fell short of forecasts after beating estimates in the previous two quarters. In the first quarter, it topped the mark by 8 cents, and in the fourth quarter of the last fiscal year, it was ahead by 5 cents.

Competitors to Watch: Masco Corporation (NYSE:MAS), American Woodmark Corp. (NASDAQ:AMWD), Patrick Industries, Inc. (NASDAQ:PATK), Constellation Brands, Inc. (NYSE:STZ), U.S. Home Systems, Inc. (NASDAQ:USHS), and Newell Rubbermaid Inc. (NYSE:NWL).

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(Source: Xignite Financials)