Brown Forman, the maker of Jack Daniel’s Tennesee Whiskey, reported on Wednesday second-quarter earnings that matched expectations and revenue that missed while first-half sales decline.
The company reported earnings of $0.50 a share, up a penny from a year earlier and matching analyst expectations compiled by Capital IQ. Revenue declined 3% year-over-year to $830 million, missing forecasts for $837.3 million. Brown Forman said it expects 2017 earnings of $1.71 to $1.81 a share, straddling the consensus for $1.76 a share. The company said it expects net sales to grow 4% to 5% year-over-year.
In the first half of the fiscal year, sales fell 4%, the company said. That was partly related to the divestiture of Southern Comfort and Tuaca the prior year and partly because of foreign exchange expenses, Brown Forman said. Operating income in the first six months declined 5% while diluted earnings rose 1% to $0.87 a share.
“As anticipated, our reported earnings were impacted noticeably in the first half by the absence of the brands we sold in late fiscal year 2016, as well as by adverse foreign exchange,” Chief Executive Paul Varga said in a statement on Wednesday. “Underlying growth in net sales and operating income was solid considering the strength of last year’s first half.”
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