Reuters
Jul 9, 2009
Chattem second quarter profits beats Street, backs full-year profit view
Reuters
Jul 9, 2009
July 9 (Reuters) - Chattem Inc (CHTT.O) posted a 17 percent rise in quarterly profit that beat market estimates, helped by strong sales in the United States, and backed its full-year adjusted earnings forecast, sending its shares up 4 percent in trading before the bell.
The company, which makes and sells household and personal-care products like over-the-counter drugs, toiletries, cosmetics and dietary supplements, posted net income of $24.2 million, or $1.26 a share, compared with $20.7 million, or $1.06 a share, in the year-ago quarter.
Revenue at the company rose 4 percent to $121.8 million for the quarter ended May 31.
Domestic revenue increased 7 percent to $116 million, led by sales of skin care powder Gold Bond and pain relief product Icy Hot, among others.
Analysts on average expected earnings of $1.21 a share, before special items, on revenue of $123.6 million, according to Reuters Estimates.
Chattem reiterated its full-year earnings view of $4.80 a share to $4.90 a share, excluding items.
Analysts were expecting the company to earn $4.51 a share, before items.
Shares of the Chattanooga, Tennessee-based company were up $2.56 at $65.50 in trading before the bell. They closed at $62.94 Wednesday 8 July on Nasdaq. (Reporting by Nivedita Bhattacharjee in Bangalore; Editing by Anne Pallivathuckal)
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