The Company reported Q2 earnings today of 94 cents a share up from 83 cents last year beating analyst estimates. Net income was up 11% and revenue was up 5% for the quarter, the company also raised its expected EPS for the year from $3.00 a share to $3.20 a share. The increase in expected earnings is largely due to the sale of two of its wine brands as the company has decided to focus on other products in its portfolio. The main drivers for the quarter were improved Jack Daniels sales in the US a strong performance from the Finlandia brand in Eastern Europe and better than expected volumes for ready-to-drink in Australia. The company also disclosed it plans on purchasing $250 million in stock this year.
Overall the company performed largely as expected an excluding the sale of its two wine brands has remained on target to meet its forecasted earnings numbers for the year. I suggest a hold rating for the stock as I see no significant fundamental changes within the company that would change our original investment thesis.
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