On Oct. 27, Fortune Brands
- On an adjusted basis, the company's EPS of $1.30 fell short of analysts' expectations.
- Sales increased by 23.1%, driven by the high performance of brands like Moen, Master Lock, and Sauza.
- Net income saw a huge increase by 90.8 % to $151 million, due to higher margins in spirits and wine.
- Free cash flow for the quarter increased by 75.6% to $390 million due to lower capital expenditure needs.
(Figures in millions, except per-share data)
Income Statement Highlights
|
Avg. Est. |
Q3 2006 |
Q3 2005 |
Change |
|
|---|---|---|---|---|
|
Sales |
$2,192 |
$2,219 |
$1,802 |
23.1% |
|
Net Profit |
-- |
$151 |
$79* |
90.8% |
|
EPS |
$1.33 |
$0.98 |
$0.52* |
88.5% |
|
Diluted Shares |
-- |
155 |
151 |
2.3% |
Get back to basics with a look at the income statement.
Margin Checkup
|
Q3 2006 |
Q3 2005 |
Change* |
|
|---|---|---|---|
|
Gross Margin |
45.98% |
45.25% |
0.73 |
|
Operating Margin |
17.11% |
16.35% |
0.76 |
|
Net Margin |
6.82% |
4.40% |
2.42 |
Margins are the earnings engine. See how they work.
Balance Sheet Highlights
|
Assets |
Q3 2006 |
Q3 2005 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$219 |
$207 |
5.4% |
|
Accounts Rec. |
$1,267 |
$1,114 |
13.8% |
|
Inventory |
$2,111 |
$1,665 |
26.8% |
|
Liabilities |
Q3 2006 |
Q3 2005 |
Change |
|---|---|---|---|
|
Long-Term Debt |
$5,038 |
$5,389 |
(6.5%) |
Learn the ways of the balance sheet.
Cash Flow Highlights
|
Q3 2006 |
Q3 2005 |
Change |
|
|---|---|---|---|
|
Cash From Ops. |
$392 |
$271 |
44.4% |
|
Capital Expenditures |
$2 |
$49 |
(96.1%) |
|
Free Cash Flow |
$390 |
$222 |
75.6% |
Find out why Fools always follow the money.
Related Companies:
-
Diageo
(NYSE:DEO) -
Constellation Brands
(NYSE:STZ) -
Brown-Forman
(NYSE:BF-B)
Related Foolishness:
- Another Tasty Fortune Cookie
- Constellation Bottles Another Quarter: Fool by Numbers
- Constellation Brands Chugs Ahead
Diageo is a Motley Fool Income Investor recommendation. To see why, try a free 30-day trial.
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