Fortune Brands Earnings: Two Straight Quarters of Net Income Growth
S&P 500 (NYSE:SPY) component Fortune Brands, Inc. (NYSE:FO) reported its results for the first quarter. Fortune Brands, Inc. manufactures and sells distilled spirits, home and hardware products and golf products.
Fortune Brands Earnings Cheat Sheet for the First Quarter
Results: Net income for the home furnishings and fixtures company rose to $81.2 million (52 cents/share) vs. $72.2 million (47 cents/share) in the same quarter a year earlier. A rise of 12.5% from the year earlier quarter.
Revenue: Rose 8.1% to $1.76 billion YoY.
Actual vs. Wall St. Expectations: FO beat the mean analyst estimate of 51 cents/share. Estimates ranged from 45 cents per share to 56 cents per share.
Quoting Management: “Fortune Brands continued to deliver strong growth in sales and earnings as each of our three businesses outperformed their respective markets in the quarter,” said Bruce Carbonari, chairman and chief executive officer of Fortune Brands. “Our businesses are pursuing strategies designed to outperform their markets and they’re executing at a high level. As a result, we’re on track to deliver another year of strong earnings growth in 2011.”
The company has now seen net income rise in two-straight quarters. In the fourth quarter of the last fiscal year, net income rose more than sevenfold from the year earlier.
Over the last five quarters, revenue has increased 7.2% on average year over year. The biggest increase came in the first quarter of the last fiscal year, when revenue rose 12.9% from the year earlier quarter.
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)
Stock Performance: Shares of FO are trading down 1.5% from the previous close.