--> Stock Flat pre market
Brown-Forman misses by $0.02, misses on revs; reaffirms FY15 guidance
Reports Q1 (Jul) earnings of $0.70 per share, $0.02 worse than the Capital IQ Consensus Estimate of $0.72; revenues rose 2.8% year/year to $921 mln vs the $932.15 mln consensus.
- Underlying net sales increased 3%: Price/mix contributed two points to net sales growth and gross margin expanded 50bps Jack Daniel's trademark grew underlying net sales 5% (+4% reported).
- Underlying net sales grew 15% (+10% reported) in the emerging markets, a continuation of the strong trends the company has been experiencing in these fast growing markets.
- The geopolitical environment remains fragile, particularly in Russia, where iconic American brands are experiencing increased scrutiny, including some of Brown-Forman's brands.
- While first quarter results were negatively impacted by inventory reductions, the company expects stronger reported and underlying results over the balance of the year, driven by more stable inventory levels and expanding global demand for the company's portfolio of brands.