Brown-Forman Posts In-Line Q1 Earnings, But Sales Drop

Brown-Forman Corporation (NYSE: BF-B) reported in-line earnings for its fiscal first quarter, but the company's sales missed analysts' estimates.The Louisville, Kentucky-based company reported a quarterly profit of $156 million, or $0.75 per share, versus a year-ago profit of $150 million, or $0.70 per share.Its revenue declined 2 percent to $900 million, while sales on an underlying basis gained 7 percent. However, analysts were projecting earnings of $0.75 per share on revenue of $947 million.Underlying sales at the Jack Daniel's trademark brand climbed 6 percent in the quarter.Its operating income rose 3 percent to $227 million in the quarter.During the quarter, Brown-Forman repurchased a combined total of 2.4 million Class A and Class B shares at an average price of $95 per share.Paul Varga, the company's Chief Executive Officer, said, "Continuing to build on our results of the last few years, we are off to a strong start in fiscal 2016. Despite a volatile global economy, adverse foreign exchange, and increasing competitive intensity, our growth in underlying sales and operating income were impressive, and continued to compare quite favorably to our industry competitive set."Brown-Forman affirmed its fiscal 2016 earnings forecast of $3.40 to $3.60 per share on underlying sales growth of 6 percent to 7 percent.Brown-Forman shares fell 0.83 percent to close at $98.22 yesterday.