Absolut Vodka Maker Pernod's Stock Falls After Disappointing Earnings
The maker of the luxury drinks fell as much as 3.8% this morning. Late yesterday, the company's earnings report said that revenue for the quarter rose "close to 3%", Bloomberg News reported. That was well below the average of 4.2% forecast by analysts surveyed by Bloomberg News.
The company's sales disappointed as the recession forced consumers in Western Europe cut back their purchases of premium liquors. The company cited sales in the U.K., Spain and Greece in particular.
"Europe remains troubling," Credit Suisse analyst Anthony Bucalo wrote in a research report. Greece, Spain and the U.K. have "clearly become more challenging as economic weakness and austerity programs take hold."
Pernod shares were down 1.31 euros, or 2 % to 62.8 euros as of 10:10 a.m. in Paris.