The company has managed to deliver an average increase in EPS of 8.20% per year since 2000. Analysts expect Diageo to earn $4.97 per share in 2011 and $5.50 per share in 2012. This would be a nice increase from the $4.18/share the company earned in 2010. The company's premium spirits brands have been popular with US consumers who traded up to these premium brands. The North American market accounts for 34% of the company's sales, while emerging markets account for 33% of its sales. Emerging markets have been a bright spot, as the company has been able to achieve strong double digit growth there.
Some previous posts on Diageo:
As a long-term investment I still like* Diageo's combination of brands and strong distribution but in my view the stock is currently a bit too expensive.
* Have a long position in Diageo that I established at much lower prices.