Brown-Forman expects full-year earnings to be $1.71 to $1.81 per share. Shares were not yet active in premarket trade, but are up 1.4% in the year so far, while the S&P 500 has gained 6%. Underlying net sales dropped 5% (-17% reported), as the company believes that weaker economic conditions, devalued currencies and political instability have negatively impacted underlying demand. The firm’s current ratio calculated as 0.60 for the most recent quarter Express Scripts (ESRX) reported the launch of its Diabetes Care Value Program, the industry’s most comprehensive approach to improve pharmacy care while controlling plan costs for people with diabetes.
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Sales in the USA were down 3 percent, although up 5 percent on an underlying basis, with growth from Woodford Reserve, Old Forester, the introduction of Cooper’s Craft, the tequilas, Sonoma-Cutrer wines and most of the Jack Daniel’s family.
The company said its results were “largely as anticipated considering the absence of previously disposed brands (Southern Comfort and Tuaca) and the hard comparisons against last year’s launch of Jack Daniel’s Tennessee Fire in the United States”.
Paul Varga also stated that following the successful launch of Jack Daniel’s Tennessee Fire in the U.S. made a year over year comparison of growth hard. The company said its Woodford Reserve and Old Forester bourbon brands also delivered strong growth.
Brown-Forman said sales fell 4.9% from a year earlier, to $856 million.
Underlying net sales for the entire Jack Daniel’s lineup rose by 3 percent in the quarter. These results were fueled by the Jack Daniel’s family of brands.
The slowdown in emerging markets began in the last half of the previous fiscal year and some countries, including Russian Federation, they believe the sales decline is bottoming out, Morreau said. While our two largest emerging markets, Poland and Mexico, grew underlying net sales, results in Turkey, Russia, Brazil, China, Thailand and several markets in eastern Europe were down. However, net sales (+2%) and operating income (+6%) were both in positive territory on an underlying basis. Responsible for 20% of Brown-Forman’s top line, sales in developing markets dragged on revenue and profit.
Many Wall Street Analysts have commented on Brown-Forman Corporation. The company’s price sits -0.92% below from its 50-day moving average of $49.40 and -0.31% below from the stock’s 200-day moving average of $48.86. Its weekly and monthly volatility is 2.48%, 1.60% respectively.
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The Louisville, Kentucky-based company said it had profit of 36 cents per share. During the same quarter in the previous year, the company posted $0.75 EPS. The company now has a Return on Equity of 70.20% and Return on Investment of 36.30%.
