Back to top

Image: Bigstock

Brown-Forman (BF.B) Misses on Q4 Earnings, Stock Dips 1.6%

Read MoreHide Full Article

Brown-Forman Corporation (BF.B - Free Report) , the world’s leading producer and distributor of premium alcoholic beverages, came out with fourth-quarter fiscal 2017 results, wherein adjusted earnings of 38 cents fell short of the Zacks Consensus Estimate of 40 cents.

Earnings Estimate Revision: The Zacks Consensus Estimate for fiscal 2018 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 Corporation Price and EPS Surprise
 

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

Revenues: Net sales remained fell 5% to $694 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 $887 million, down 5% from the prior-year figure of $933 million. The Zacks Consensus Estimate was pegged at $736 million.

Key Events: The company paid dividends of $274 million and repurchased 11.9 million shares worth $561 million, during fiscal 2017. Further, on May 24, the company declared a quarterly cash dividend of 18.25 cents per share, which is payable on Jul 3, 2017 to shareholders of record as on Jun 5.

Additionally, on Jun 1, Brown-Forman concluded the buyout of GlenDronach, BenRiach, and Glenglassaugh single malt scotch brands for approximately $407 million.

Outlook: For fiscal 2018, 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 negative influence from foreign currency headwinds, the company projects fiscal 2018 earnings in the range of $1.80–$1.90 per share.

Stock Movement: Brown-Forman’s shares are down nearly 1.6% during pre-market trading hours following the earnings release.

Zacks Rank: Currently, Brown-Forman carries a Zacks Rank #2 (Buy) 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!

3 Stocks to Ride a 588% Revenue Explosion

At Zacks, we're mostly focused on short-term profit cycles, but the hottest of all technology mega-trends is starting to take hold...

By last year, it was already generating $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce ""the world's first trillionaires,"" but that should still leave plenty of money for those who make the right trades early. See Zacks' Top 3 Stocks to Ride This Space >>


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Brown-Forman Corporation (BF.B) - free report >>

Published in