Brown-Forman Corporation BF.B, the world’s leading producer and distributor of premium alcoholic beverages, came out with second-quarter fiscal 2016 results, wherein adjusted earnings of 97 cents a share missed the Zacks Consensus Estimate of $1.00, and remained flat year over year.
2016 Outlook Intact: Despite a mixed global economic outlook, the company continues to anticipate its strength across all regions to sustain in fiscal 2016 given the strength of its brands, where it still anticipates a 6% – 7% growth in underlying sales. Further, the company continues to project fiscal 2016 earnings per share in the range of $3.40–$3.60.
Earnings Estimate Revision: The Zacks Consensus Estimate for fiscal 2016 has been unchanged in the last 30 days. However, in the trailing four quarters, excluding quarter under review, the company underperformed the Zacks Consensus Estimate by an average of 1.6%.
Revenues: Net sales for the quarter declined 4% year over year to $1,096 million. However, on an underlying basis, sales grew 5%. Moreover, after deducting excise taxes, sales came in at $854 million, down 2.6% from the prior-year figure of $877 million. The Zacks Consensus Estimate for the quarter was $859 million.
Key Events: Brown-Forman recently hiked its quarterly cash dividend by 7.9% to 34 cents per share on its Class A and Class B common stock, payable on Dec 30, 2015 to stockholders of record on Dec 3, 2015. The company also repurchased 7.6 million shares worth $739 million during the first half of fiscal 2016, leaving shares worth $256 million remaining under its buyback authorization, as of Dec 2.
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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