EL PASO, Texas (AP) -- Beam reported a better-than-expected second-quarter profit Thursday on strong demand for its bourbons.
The maker of spirits such as Jim Beam, Maker's Mark, Courvoisier and Sauza also raised its full-year guidance, but it warned that earnings growth would be tempered in the second half of the year as it increases spending on marketing, distillation and warehouse capacity.
Beam earned $100.5 million, or 62 cents per share, for the quarter that ended June 30. That is down from $328.6 million, or $2.09 per share, earned in the same quarter last year when it got a boost from new product introductions. It earned 58 cents per share on an adjusted basis from continuing operations.
The company said it benefited from higher prices and stronger sales volume and its revenue increased 4 percent to $595.5 million with strong sales of Jim Beam, Maker's Mark and Skinnygirl.
Analysts polled by FactSet had expected Beam to earn 54 cents per share on revenue of $582.3 million.
The company said that it expects strength in its U.S. market will offset some of the uncertainty in international markets in the near term.
Beam said it forecast that its earnings will increase in the low double-digits this year before any special adjustments, up from its prior expectations of high single-digit growth. It said that added spending may weigh on its earnings but it expects that its acquisitions will add a few cents to the year's results, rather than have a neutral impact as it previously expected.
Shares of Beam Inc. fell $1.08 to $60.47 by midday. Its shares have traded between $42.30 and $64 in the past 52 weeks.