Brown-Forman Corporation BF.B, the world’s leading producer and distributor of premium alcoholic beverages, came out with third-quarter fiscal 2016 results, wherein adjusted earnings of 94 cents a share surpassed the Zacks Consensus Estimate by a penny, and also increased 7% year over year.
The company anticipates nearly 5% growth in underlying sales down from the previous estimate of 6% to 7% growth. On the other hand, the company projected fiscal 2016 earnings per share in the range of $3.32–$3.42 down from the previous estimate 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 0.4%.
Revenues: Net sales dropped 1% year over year to $1,083 million. However, on an underlying basis (excluding negative currency impact and other adjustments), sales grew 4%. Moreover, after deducting excise taxes, sales came in at $809 million, down 0.5% from the prior-year figure of $813 million. The Zacks Consensus Estimate for the quarter was $820 million.
Key Events: On Jan 28, 2016, 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 Apr 1, 2016 to stockholders of record on Mar 9, 2016. The company also repurchased 7.8 million shares worth $762 million during the first nine months of fiscal 2016, leaving shares worth $234 million remaining under its buyback authorization, as of Jan 31.
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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