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Earnings Analysis: 
Constellation Brands Profit Ups 26%.
Author: 123jump.com Staff
123jump.com
Last Update: 1:32 PM EDT April 06 2007



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Constellation Brands fourth-quarter profit grew 26%, as strong wine sales helped offset heightened competition in Britain and a drop in sales of imported beer. WD-40 second-quarter profit grew 24%, mainly from strong sales of its lubricants. Team third-quarter profit rose slightly on strong sales.

 
Constellation Brands Inc. (STZ: chart), wine maker, said that its fourth-quarter net income increased to $70.2 million, or 29 cents per share, compared with $58.2 million, or 24 cents per share. On a comparable basis, the company earned 35 cents per share. Sales rose to $1.42 billion from $1.3 billion last year. Net sales rose to $1.14 billion from $1.05 billion a year ago. For the year, the company expects to earn $1.21 to $1.31 per share, on a reported basis. On a comparable basis it is targeting profit of $1.30 to $1.40. The forecast is based on low single-digit growth in organic net sales and low single-digit incremental benefit from the acquisitions of Vincor and Svedka. Net sales are expected to decrease 13% to 15%.

WD-40 Co. (WDFC: chart), lubricant and household cleaner maker, said that its second-quarter net earnings increased 24% to $8.94 million, or 52 cents a share, compared with $7.23 million, or 43 cents per share, during the year-ago period. The company posted revenue of $79.3 million versus $71.5 million last year. WD-40 said it has authorized a $35 million share buyback that expires in March 2008 and it still expects fiscal 2007 per-share earnings of $1.70 to $1.85 on revenue of $307 million to $324 million. The outlook reflects the impact of the company''s move to open a direct operation in China, WD-40 said.

Team Inc. (TISI: chart), which detects and repairs valve and emissions leaks, said that its third-quarter net income rose to $2.44 million, or 26 cents per share, compared with $2.28 million, or 25 cents per share, in the year-ago period. Revenue climbed to $73.3 million versus $62.6 million last year. Team Inc. still expects fiscal 2007 earnings of $1.50 to $1.65 per share.
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