For the most recent quarter, the company's earnings blossomed to $10.7 million, from $8.8 million in the June 2006 period. The diluted per-share figure was $0.36, up from the year-ago $0.30. Revenues grew by 20% year over year to $169.8 million, versus $141.5 million.
FTD thus joins a lengthening line of companies that have seen their results in the U.S. and Canada sag in the face of expanding overseas numbers. Standing in that same line are such varied U.S.-based companies as Caterpillar
FTD's revenue slid by 5% in its consumer segment and 3.8% in the florist segment. However, $34.8 million of revenue generated in the quarter from its July 2006 acquisition of U.K.'s Interflora allowed total sales to bloom at the company. And despite the wilting consumer-segment revenues, a margin expansion in that sector boosted its contribution to the company's operating income by more than 41%.
With the company's fiscal year having ended in June, management's guidance calls for revenue in the new year to reach roughly $645 million, compared to $613 million last year. The company expects $35.7 million in net income, which would represent about a 12% increase over the 2007 figure.
With its new results in hand, the question becomes whether FTD is a flower or a weed. Clearly, management has done a solid job of trimming costs in the consumer group. But sagging domestic revenues are a concern, and the new U.K. unit appears to have room to grow its margins -- which actually occurred somewhat in the most recent quarter. Therefore, and with the company's shares just about flat from a year ago, my inclination is to let FTD strengthen its financial deliveries before I place an order for its shares.
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