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Diageo (DEO) is the toast of the town... on four continents

In a skittish market, it's best to look for companies with the resources, experience, and geographic footprint necessary to ride out what could be more-challenging economic conditions in the year ahead. One company that fits the above bill is Diageo (NYSE: DEO).

Diageo is the world's largest producer of alcoholic drinks, with a stable of well-known brands, including Johnnie Walker Scotch, Smirnoff vodka, and Seagram 7, among others.

In general, analysts see 6%-9% revenue growth in the U.S. and solid, double-digit growth in Latin America and Asia. Modest growth is expected in Europe. Operating margins are better than adequate. Moreover, DEO's four-continent footprint should help the company deal with a U.S. economic slowdown, if one occurs in 2008. The Reuters F2007/F2008 EPS consensus estimates for DEO are $4.46/$4.92.

Continue reading Diageo (DEO) is the toast of the town... on four continents

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Last updated: May 28, 2012: 02:07 AM

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