Topic: How To Invest

The Successful Investor Hotline – Friday, June 9, 2017

Article Excerpt

ANDREW PELLER LTD., $10.95, Toronto symbol ADW.A, is Canada’s second-largest producer of wines, after Constellation Brands. The company’s sales for the fiscal 2017 fourth quarter, ended March 31, 2017, fell 2.5%, to $72.3 million from $74.2 million a year earlier. The decline is mainly because Easter (and the holiday’s entertaining season) fell in April this year, not March. That hurt wine sales in the quarter. As well, the year-earlier quarter included revenue from a now-cancelled co-packing deal. Peller earned $2.0 million, or $0.05 a share, in the quarter. That’s a big improvement over the $1.7 million, or $0.04 a share, the company lost a year earlier. However, the year-earlier quarter included writedowns and restructuring costs. When you factor out those unusual items for both periods, earnings in the latest quarter jumped to $1.9 million from $191,000. As a result of Peller’s improving outlook, the company will raise its quarterly dividend by 10.3%. Starting with the July 2017 payment, investors will receive $0.045 a..