Louisville, Kentucky-based Brown-Forman Corporation (BF.B) manufactures, distills, bottles, imports, exports, markets, and sells various alcoholic beverages. Valued at $21.63 billion by market cap, the company’s products include branded whiskey, vodka, wines, tequila, bourbon, and gin. The spirits company is expected to announce its fiscal first-quarter earnings for 2025 on Wednesday, Sep. 4.
Ahead of the event, analysts expect BF.B to report a profit of $0.46 per share on a diluted basis, down 4.2% from $0.48 per share in the year-ago quarter. The company beat or matched the consensus estimates in three of the last four quarters while missing the forecast on another occasion.
For the full year, analysts expect BF.B to report EPS of $1.85, down 13.6% from $2.14 in fiscal 2024.
BF.B stock has significantly underperformed the S&P 500’s ($SPX) 14.5% gains on a YTD basis, with shares down 20.9% during this period. Similarly, it underperformed the S&P 500 Cons Staples Sector SPDR’s (XLP) 8.5% gains over the same time frame.
On Jun. 5, BF.B reported its Q4 and full-year results. In Q4, its EPS increased 30.2% year over year to $0.56. Its net sales stood at $964 million, down 7.8% year over year. During fiscal 2024, its EPS increased 31.3% year over year to $2.14, and its net sales declined 1.2% from the previous year to $4.18 billion.
For fiscal 2025, the company anticipates a return to growth for organic net sales and organic operating income driven by gains in international markets and benefits from the normalizing inventory trends. It expects organic net sales growth to be between 2% and 4%. Similarly, its organic operating income growth will likely be in the 2% to 4% range. Moreover, its capital expenditures are forecasted to be between $195 million and $205 million. BF.B shares closed down more than 5% on the day the results were released.
Analysts’ consensus opinion on BF.B stock is neutral, with a “Hold” rating overall. Out of 13 analysts covering the stock, three advise a “Strong Buy” rating, nine give a “Hold” rating, and one recommends a “Strong Sell.” The average analyst price target for BF.B is $48.08, indicating a potential upside of 5% from the current levels.
On the date of publication, Dipanjan Banchur did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
