Update: Brown-Forman shares reverse steep premarket decline

Jack Daniel‘s distributor Brown-Forman Corp. shares slid 20% in premarket trade Wednesday before recouping their losses, after the company missed sales estimates for its fiscal first quarter. The company said it had net income of $186 million, or 39 cents a share, in its fiscal first quarter to July 31, down from $200 million, or 41 cents a share, in the year-earlier period. Sales were flat at $766 million. The FactSet consensus was for EPS of 37 cents and sales of $773 million. "Our first quarter results came in largely as anticipated considering the year-over-year drag from tariffs and timing of customer orders," Chief Executive Lawson Whiting said in a statement. The company is investing to absorb tariff costs and reallocating and reinvesting back into its brands and people, he said, citing as an example the recent news of a distribution platform in the U.K. The company said it still expects fiscal 2020 EPS of $1.75 to $1.85. Shares have gained 24% in 2019, while the S&P 500 has gained 14.5%.

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