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Brown-Forman (BF.B) Misses on Q3 Earnings, Trims Outlook

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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 third-quarter fiscal 2017 results, wherein earnings of 47 cents a share missed the Zacks Consensus Estimate by a penny, while it increased 1% year over year.

Brown Forman Corporation Price and EPS Surprise
 

Brown Forman Corporation Price and EPS Surprise | Brown Forman Corporation Quote

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 2.8%.

Revenues: Net sales remained nearly flat at $808 million, after deducting excise taxes. However, on an underlying basis (excluding negative currency impact and other adjustments), sales grew 4%. The company’s sales, before accounting for excise taxes, came in at $1,059 million, down 2% from the prior-year figure of $1,083 million. The Zacks Consensus Estimate was pegged at $796.1 million.

Key Events: The company repurchased 11.8 million shares worth $561 million during the first nine months of fiscal 2017, leaving shares worth $330 million remaining under its buyback authorization, as of Jan 31. Further, the company declared a quarterly cash dividend of 18.25 cents per share, which is payable on Apr 3, 2017 to shareholders of record as on Mar 6.

Outlook: For fiscal 2017, management now expects a 3%-4% increase in underlying sales, compared with 4%-5% growth projected earlier. Further, underlying operating income is now anticipated to increase in a range of 5%-7%, down from the old forecast of 6%–8%.

Based on the aforementioned estimates and a $0.06 negative influence from foreign currency headwinds, the company now projects fiscal 2017 earnings in the range of $1.71–$1.76 per share, compared with $1.71–$1.81 per share envisioned earlier.

Zacks Rank: Currently, Brown-Forman carries a Zacks Rank #3 (Hold) 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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