Earnings Review and Free Research Report: Brown-Forman’s Diluted EPS Increased 27%

LONDON, UK / ACCESSWIRE / September 20, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Brown-Forman Corp. (NYSE: BF-B), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=BF-B, following the Company's posting of its financial results on August 30, 2017, for the first quarter of the fiscal year 2018. The Company's revenue increased 8% on a y-o-y basis. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:

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Earnings Reviewed

For the three months ended July 31, 2017, Brown-Forman's revenue increased 8% to $929 million from $856 million in Q1 FY17. For the reported quarter, the Company's net revenues increased 9% to $723 million from $661 million in Q1 FY17, due to year-over-year change in distributor inventories in the United States and Russia. The revenue numbers surpassed analysts' expectations of $685.3 million.

For Q1 FY18, the Company's gross profit increased 9% to $493 million from $453 million in Q1 FY17. During Q1 FY18, Brown-Forman's gross margin decreased 40 basis points to 68.1% of revenue from 68.5% of revenue in Q1 FY17.

For the reported quarter, Brown-Forman's selling, general, and administrative expenses (SG&A) decreased 1% to $161 million from $163 million in Q1 FY17.

During Q1 FY18, Brown-Forman's operating income increased 14% to $244 million from $213 million in Q1 FY17. During Q1 FY18, the Company's operating margin increased 150 basis points to 33.7% of revenue from 32.2% of revenue in Q1 FY17.

For the reported quarter, the Company's effective tax rate was 22.1% compared to 28.2% in Q1 FY17.

During Q1 FY18, Brown-Forman's net income increased 24% to $178 million on a y-o-y basis from $144 million in Q1 FY17. For the reported quarter, the Company's diluted earnings per share (EPS) increased 27% to $0.46 on a y-o-y basis from $0.36 in Q1 FY17. The adjusted diluted EPS surpassed analysts' expectations of $0.39.

Balance Sheet

As on July 31, 2017, Brown-Forman's cash and cash equivalents increased 30.8% to $238 million from $182 million in Q4 FY17.

During Q1 FY18, the Company's net receivables increased 3.4% to $576 million from $557 million in Q4 FY17.

During Q1 FY18, the Company's inventories increased 5.5% to $1.34 billion from $1.27 billion in Q4 FY17.

For the reported quarter, Brown-Forman's accounts payable and accrued expenses decreased 9.4% to $454 million from $501 million in Q4 FY17.

During Q1 FY18, the Company's long-term debt increased 1.8% to $1.72 billion from $1.69 billion in Q4 FY17.

For the reported quarter, Brown-Forman's cash provided by operating activities was $102 million compared to $128 million in Q1 FY17.

Outlook

For FY18, Brown-Forman expects underlying net revenue growth to be in the range of 4% - 5%. The Company expects underlying operating income growth to be in the band of 6% - 8% for the fiscal year 2018.

The Company estimates diluted EPS to be in the range of $1.85 - $1.95 for the fiscal year 2018.

Stock Performance

Brown-Forman's share price finished yesterday's trading session at $54.25, marginally up 0.04%. A total volume of 683.17 thousand shares have exchanged hands. The Company's stock price rallied 9.86% in the last three months, 14.74% in the past six months, and 16.89% in the previous twelve months. Additionally, the stock surged 20.77% since the start of the year. Shares of the Company have a PE ratio of 30.01 and have a dividend yield of 1.35%. The stock currently has a market cap of $21.36 billion.

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SOURCE: Pro-Trader Daily