GO
Loading...

Enter multiple symbols separated by commas

Brown-Forman Uncorks Strong Earnings Helped by Tequila Sales

Brown-Forman, the maker of Jack Daniel's Tennessee Whiskey, posted better-than-expected quarterly earnings and forecast fiscal 2008 profit above estimates.

Shares of the wine and spirit company rose more than 7% before settling back somewhat .

Profit were 56 cents a share, in the fourth quarter ended April 30, topping analysts' average expectation of 50 cents a share, as compiled by Thomson Financial.

The wine and spirit company earned $78.4 million, or 63 cents a share, in the year-earlier fourth quarter.

Quarterly sales rose to $690.8 million from $585.1 million, boosted by the recent acquisition of Mexican tequila maker Casa Herradura.

Louisville, Kentucky-based Brown-Forman said it expects to earn $3.53 a share to $3.68 a share in fiscal 2008, excluding costs associated with the Casa Herradura acquisition. Analysts' average forecast has been $3.41 a share. On the same basis, Brown-Forman earned $3.22 a share for all of fiscal 2007.

"Global trends for our premium beverage portfolio remain strong" for the upcoming year, Chief Financial Officer Phoebe Wood said in a conference call.

The company has been benefiting from a trend that has seen U.S. consumers move away from beer toward liquor and wine, and "trade up" to more expensive premium brands.

However, in the third quarter it said sales growth of Jack Daniel's slowed in the United States amid an industrywide moderation in demand for distilled spirits.

Contact U.S. News

  • CNBC NEWSLETTERS

    Get the best of CNBC in your inbox

    Please choose a subscription

    Please enter a valid email address
    To learn more about how we use your information,
    please read our Privacy Policy.

Don't Miss

U.S. Video

  • Hero miles for military members: Real estate magnate's plea

    Chairman of the Fisher House Foundation, Ken Fisher, discusses the Hero Miles program with CNBC's Dina Gusovsky. During Military Appreciation Month, Fisher is asking every traveler to donate 1,000 of their miles to replenish the Hero Miles programs that is in danger of running out.

  • Cramer shuts down this market's haters

    "Mad Money" host Jim Cramer on why this market can't stop, won't stop.

  • From the battlefield to the boardroom

    Your Grateful Nation is dedicated to helping Special Forces veterans enter the corporate world and Knot Standard provides complimentary suits to vets. Mad Money's Jim Cramer spoke with Rob Clapper, Your Grateful executive director; John Ballay, Knot Standard co-founder and president; Tej Gill, retired U.S. Navy Seal; and Darren McB, active duty U.S. Navy Seal.