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Brown-Forman (BF.B) Misses Q1 Earnings, FY17 View Intact

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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 first-quarter fiscal 2017 results, wherein adjusted earnings of 36 cents a share missed the Zacks Consensus Estimate by a penny, and also decreased 2.7% year over year.

The company reiterated its fiscal 2017 outlook. For fiscal 2017, management expects a 4%-6% increase in underlying sales. Further, underlying operating income is anticipated to increase in a range of 7%–9%. Based on the aforementioned estimates and a $0.03 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 outperformed the Zacks Consensus Estimate by an average of 3.7%.

Revenues: Net sales declined 5% year over year to $661 million, after deducting excise taxes. However, on an underlying basis (excluding negative currency impact and other adjustments), sales grew 2%. Moreover, the company’s sales, before accounting for excise taxes, came in at $856 million, down 5% from the prior-year figure of $900 million. The Zacks Consensus Estimate was pegged at $675.7 million.

BROWN FORMAN B Price, Consensus and EPS Surprise

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

Key Events: The company repurchased 4.2 million shares worth $201 million during the first three months of fiscal 2017, leaving shares worth $690 million remaining under its buyback authorization, as of Jul 31. On Aug 18, 2016, the company executed a two-for-one stock split.

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

Stock Movement: Brown-Forman’s shares declined nearly 5% during pre-market trading hours following the earnings release.

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

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