Brown-Forman Sales Top Estimates, Sticks With Full-year View

By Ciara Linnane Markets MarketWatch Pulse

Brown-Forman Corp. said Wednesday it had net income of $197 million, or 50 cents a share, in its fiscal second quarter to end October, after income of $200 million, or 49 cents a share, in the year-earlier period. Sales fell to $830 million from $854 million. The FactSet consensus was for EPS of 50 cents and sales of $840 million. The distributor of alcohol including Jack Daniels, Woodford Reserve wines and Finlandia vodka, said earnings were "impacted noticeably" by brands sold in the latter half of fiscal 2016, as well as currency changes. "We anticipate additional improvement in underlying net sales growth in the second half of fiscal 2017 against more favorable comparisons, as well as continued investments to position the company for sustained long-term growth," Chief Executive Paul Varga said in a statement. The company is still expecting Fiscal 2017 EPS of $1.71 to $1.81, wrapping around the FactSet consensus of $1.76. Shares were not yet active in premarket trade, but were down 14% in the year to date, while the S&P 500 has gained 8%.

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