Brown-Forman (BF.B) Q4 Earnings in Line, Guides FY16 – Tale of the Tape

Zacks

Brown-Forman Corporation (BF-B), the world’s leading producer and distributor of premium alcoholic beverages, came out with fourth-quarter fiscal 2015 results, wherein adjusted earnings of 66 cents a share came in line with the Zacks Consensus Estimate of 66 cents and jumped 6.5% year over year.

Despite a mixed international outlook, the company expects its strength across all regions to sustain in fiscal 2016, where it anticipates a 6%- 7% growth in underlying sales.

Earnings Estimate Revision: The Zacks Consensus Estimate for fiscal 2015 has been unchanged in the last 30 days. In the trailing four quarters, including quarter under review, the company underperformed the Zacks Consensus Estimate by an average of 2.9%.

Revenues: Net sales for the fourth quarter escalated 6% year over year to $947 million. However, on an underlying basis (excluding negative currency impact and other adjustments), sales grew 10%. Moreover, after deducting excise taxes, sales came in at $740 million, up about 7.4% from the prior-year figure of $689 million. The Zacks Consensus Estimate for the quarter was $706 million.

The increase in sales was mainly backed by strength noted in the company’s premium American whiskey portfolio coupled with robust gains witnessed in most regions.

Key Events: During fiscal 2015, Brown-Forman returned about $718 million to shareholders, including share repurchases worth $462 million and dividends of $256 million.

Zacks Rank: Currently, Brown-Forman carries a Zacks Rank #3 (Hold) which is subject to change following the earnings announcement.

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

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