Published March 08, 2011
Jack Daniel’s whiskey maker Brown-Forman (BFA) brewed up a stronger-than-expected 30% jump in third-quarter profit, leading the company to raise its full-year view and sending its shares higher in morning trade.
The Louisville, K.Y.-based company posted net income of $140.7 million, or 96 cents a share, up 30% compared with $107.9 million, or 73 cents a share, in the same quarter last year, ahead of average analyst estimates polled by Thomson Reuters of 86 cents.
Revenue for the beer, wine and spirits maker, operating under the brands such as Southern Comfort, Herradura Tequila and Sanoma-Cutrer Wines, was $962.4 million, up 12% from $861.7 million a year ago, beating the Street’s view of $877 million.
“We continue to be pleased with our broad-based growth encompassing both developed and emerging international markets,” Brown-Forman CEO Paul Varga said in a statement. “Led by strong performances of the Jack Daniel’s Family of Brands and el Jimador, our third quarter results showed an acceleration of growth over the first half.”
Jack Daniel’s and el Jimador sales climbed 9% and 13%, respectively, year-to-date.
Sales were further assisted by strong performances in Australia, the U.K, Mexico, Turkey, Germany, France and Brazil, which more than offset softer results in the U.S. and Russia, impeded due to route-to-market changes implemented earlier this year.
Given the strong quarterly results, the company raised its fiscal 2011 earnings guidance to the range of $3.35 to $3.45 a share.