Brown-Forman reports EPS in-line, misses on revs; reaffirms FY16 guidance
- Reports Q1 (Jul) earnings of $0.75 per share, in-line with the Capital IQ Consensus of $0.75; revenues fell 2.3% year/year to $900 mln vs the $947.14 mln consensus.
- Underlying net sales increased over 7%: Price/mix contributed two percentage points to net sales growth and gross margin grew 80bps The Jack Daniel's family of brands grew underlying net sales 6% (-3% reported) Jack Daniel's Tennessee Honey grew underlying net sales 18% (+4% reported)
- Top-line results in the United States remained strong, with underlying net sales growth of 10% (8% reported). Sales growth was primarily driven by volume growth, fueled by the launch of Jack Daniel's Tennessee Fire, as well as improvements in price/mix.
- Co reaffirms guidance for FY16, sees EPS of $3.40-3.60, excluding non-recurring items, vs. $3.50 Capital IQ Consensus. "These results were again driven by the Jack Daniel's trademark and our leading portfolio of American whiskey brands. Given our first quarter results and expectations for the continued global growth of our brands, we are confirming our fiscal 2016 outlook of 6% to 7% underlying sales growth, 8% to 10% underlying operating income growth, and EPS in the range of $3.40-$3.60."