Fortune Brands (NYSE:FO) reported Friday better-than expected earnings, driven mostly by lower cost structures and increased demand across its three business segments.
The company, owner of well-known brands such as Jim Beam, Cruzan Rum, and Omega, reported a net income of $227.4 million, or $1.48 a share, compared with 66 cents, in the same quarter last year, and landing ahead or average analyst estimates of 76 cents, according to a Thomson Reuters poll.
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The Deerfield, Illinois-based company said its net sales increased 9% to $1.9 billion, beating the Street’s view of $1.8 billion.
Fortune Brands CEO Bruce Carbonari said the solid double-digit growth in earnings and boost in sales has put the company on track for “strong full-year results.”
“Each of our three brand groups grew sales faster than our markets, delivered operating margins at or near the top of our consumer segments, and outperformed our expectations in the quarter,” he said. “Fortune Brands has executed well in delivering compelling new products, global expansion initiatives and successful brand investment programs.”
The company saw revenue hikes in all three of its segments, including a 13% hike in its home and security brands, which Carbonari attributed to share gains fueled by new products and expanded relationship with “key customers.”
Expecting to “outperform” its markets and benefit from strategic investments, low cost structures and enhanced productivity, the company raised its full-year EPS guidance to the range of $2.60 to $2.90, up from its previous view of $2.50 to $2.80.