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Brown-Forman (BF.B) Meets Q2 Earnings, Sales Miss

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Brown-Forman Corporation (BF.B - Free Report) , the world’s leading producer and distributor of premium alcoholic beverages, came out with second-quarter fiscal 2017 results, wherein adjusted earnings of 50 cents a share came in line with the Zacks Consensus Estimate and also increased 3% year over year.

The company reiterated its fiscal 2017 earnings per share outlook. For fiscal 2017, management expects a 4%-5% increase in underlying sales. Further, underlying operating income is anticipated to increase in a range of 6%–8%. Based on the aforementioned estimates and a $0.05 negative influence from foreign currency headwinds, the company projects fiscal 2017 earnings in the range of $1.71–$1.81 per share.

Earnings Estimate Revision: The Zacks Consensus Estimate for fiscal 2017 has been unchanged in the last 30 days. In the trailing four quarters, excluding quarter under review, the company surpassed the Zacks Consensus Estimate by an average of 2.3%.

BROWN FORMAN B Price, Consensus and EPS Surprise

BROWN FORMAN B Price, Consensus and EPS Surprise | BROWN FORMAN B Quote

Revenues: Net sales declined 2.8% year over year to $830 million, after deducting excise taxes. However, on an underlying basis (excluding negative currency impact and other adjustments), sales grew 3%. Moreover, the company’s sales, before accounting for excise taxes, came in at $1,055 million, down 3.7% from the prior-year figure of $1,096 million. The Zacks Consensus Estimate was pegged at $834.4 million.

Key Events: The company repurchased 9.3 million shares worth $442 million during the first six months of fiscal 2017, leaving shares worth $448 million remaining under its buyback authorization, as of Oct 31.

Zacks Rank: Currently, Brown-Forman carries a Zacks Rank #4 (Sell) which is subject to change following the earnings announcement.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Check back later for our full write up on Brown-Forman’s earnings report!

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