Brown-Forman Cuts 2009 View, Shares Drop Wine and liquor maker Brown-Forman ( BFB) reported better-than-expected fiscal third-quarter profit Tuesday, but its shares retreated after the company cut its 2009 profit view. The Louisville, Ky.-based company said its third-quarter net income was $123.4 million, or 81 cents per share, up from $116 million, or 75 cents per share, in the year-ago period. Net sales fell around 11% to $784.1 million, hampered by the strengthening U.S. dollar, which hurts margins on overseas sales.
On average, Wall Street analysts expected net income of 77 cents per share. Brown-Forman, which produces famous liquor brands Jack Daniels and Southern Comfort, lowered its full-year 2009 EPS estimates to $2.70 to $2.90, down from a previous forecast of $3 to $3.20. This news sent the company's shares down more than 8% in early trading Tuesday. We removed shares of Brown-Forman from our "Recommended" list on Aug. 28, when the shares traded at $77.02. The company has a 2.8% dividend yield, based on last night's closing stock price of $41.06. The $39 levels seems to be a key area the stock needs to hold short term, but if that fails, then the $30 to $31 range is likely. If the shares can rebound, we see overhead resistance in the $45 to $48 price range. Brown-Forman is not recommended at this time, holding a Dividend.com Rating of 3.2 out of 5 stars. Kroger Shares Rise on Fourth-Quarter Earnings Beat Kroger ( KR), the largest supermarket chain in America, said Tuesday that its fourth-quarter profit rose 8% from the previous year.