Fortune Brands Inc., a seller of consumer goods ranging from faucets to bourbon, said Friday that its third-quarter profit dropped 63 percent as the prior-year's results included a hefty gain related to the termination of a joint venture.
Despite the lower earnings, shares rallied to a 52-week high as adjusted results soared past estimates.
The company earned $124.1 million, or 82 cents per share, for the three months ended Sept. 30. That's down from $335.9 million, or $2.21 per share, a year earlier.
Excluding restructuring charges and other items, profit was 77 cents per share. Fortune Brands said the impact of the weaker dollar hurt earnings per share by 7 cents.
Analysts polled by Thomson Reuters, whose estimates normally exclude one-time items, called for earnings of 61 cents per share.
Year-ago results included a gain of 94 cents per share related to the end of the Future Brands U.S. spirits distribution joint venture and other items.
Sales fell 10 percent to $1.72 billion from $1.92 billion on essentially flat sales of spirits as well as golf and home product sales declines. The results still managed to surpass Wall Street's estimate of $1.63 billion.
Fortune Brands said that new products such as Red Stag by Jim Beam, eco-friendly Moen faucets and a new line of Titleist golf balls contributed to its quarterly results.
The company boosted the low end of its full-year earnings guidance, citing its quarterly performance and signs of stabilization in the U.S. new home construction market. It now expects a profit of $2.10 to $2.30 per share. Fortune's prior forecast was for earnings of $2 to $2.30 per share.
Analysts predict 2009 profit of $2.23 per share.
In midday trading, shares of Fortune Brands rose 17 cents to $43.30. Earlier the stock traded at $46.77, its highest level since October 2008.
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