- Brown-Forman’s 4th quarter earnings per share (EPS) were 31 cents, missing the estimate of 34 cents, and down from 56 cents year-over-year.
- Net sales amounted to $894 million, a decrease of 7.3% compared to the previous year, and below the estimated $968.4 million.
- The company’s gross margin decreased to 57.3% from 59% year-over-year, missing the estimated 59.6%.
- Cash and cash equivalents were reported at $444 million, just shy of the estimate of $724.1 million and down 0.4% from the previous year.
- Operating margin dropped significantly to 22.9% from 38.9% in the previous year, with expectations set at 24.2%.
- Brown-Forman’s organic net sales declined by 3%.
- Analyst recommendations for Brown-Forman include 5 buys, 11 holds, and 6 sells.
Brown Forman Corp Class B on Smartkarma
Analysts at Baptista Research have been closely covering Brown-Forman Corporation’s performance on Smartkarma. In their research reports, they highlight the company’s ability to navigate a challenging market environment and execute strategic plans effectively. In one report titled “Brown-Forman: Tequila Market Strategies to Solidify Its Standing In Oversaturated Market!“, the analysts commend the company for showcasing resilience in both top and bottom-line results, with organic net sales returning to growth at a 2% increase.
In another report titled “Brown-Forman’s Secret Weapon: How Strategic Cost Management May Boost Profits Amid Inflation! – Major Drivers“, Baptista Research discusses Brown-Forman’s financial results for the first half of fiscal year 2025. Despite a reported decline in net sales, the company maintains its guidance for organic net sales and operating income growth. The analysts recognize strategic cost management as a potential driver for boosting profits in the face of inflation. These insights provide valuable perspectives on Brown-Forman’s performance and strategic initiatives moving forward.
A look at Brown Forman Corp Class B Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 3 | |
| Growth | 4 | |
| Resilience | 4 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.4 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Analysts utilizing Smartkarma Smart Scores have provided an overall positive outlook for Brown Forman Corp Class B. With solid scores across several key factors, including Growth, Resilience, and Momentum, the company demonstrates a promising long-term trajectory. Brown Forman’s strong Growth and Resilience scores indicate its potential for expansion and ability to weather market challenges. Additionally, the Momentum score suggests the company is gaining traction and investor interest, pointing towards a positive trend in the future.
As Brown-Forman Corporation is involved in the manufacturing, bottling, and marketing of various alcoholic beverage brands such as whiskey, vodka, wines, and tequila, its favorable Smart Scores reinforce its position as a resilient and growing player in the industry. While the Value score is moderate, the company’s overall outlook appears optimistic based on its solid Dividend, Growth, Resilience, and Momentum scores, positioning it well for potential future success in the market.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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