Brown Forman (NYSE:BF.A) Releases Earnings Results

Brown Forman (NYSE:BF.A) issued its earnings results on Wednesday. The company reported $0.38 earnings per share (EPS) for the quarter, FiscalAI reports. The business had revenue of $911.00 million during the quarter. Brown Forman had a return on equity of 17.63% and a net margin of 18.20%.

Here are the key takeaways from Brown Forman’s conference call:

• Innovation supported first-quarter performance, with New Mix, the broader ready-to-drink portfolio, and Jack Daniel’s Tennessee Blackberry driving growth. U.S. RTDs contributed approximately one percentage point of value growth, while Blackberry contributed more than two points based on Nielsen trends.
• Brown-Forman reaffirmed its fiscal 2027 outlook, including approximately flat organic net sales and a 3%–5% decline in organic operating income, while expressing greater confidence that profit will trend toward the favorable end of that range.
• Significant headwinds remain, including a more than 60% decline in used-barrel sales, low-teens declines in the full-strength tequila portfolio, and soft consumer demand in developed markets, particularly across Europe.
• Gross margin expanded 40 basis points to 60.2%, earnings per share rose 6% to $0.38, and operating cash flow increased to $173 million. Free cash flow grew to $161 million, supported by lower capital spending and efforts to reduce inventory.
• CEO Lawson Whiting plans to retire after nearly 30 years with the company once a successor is named. Brown-Forman’s board is conducting an internal and external search without providing a specific timeline, with Whiting expected to assist with the transition.

Brown Forman Trading Up 3.5%

Shares of BF.A stock opened at $27.96 on Thursday. The business’s fifty day moving average price is $27.74 and its 200 day moving average price is $27.40. The firm has a market capitalization of $12.83 billion, a PE ratio of 18.27 and a beta of 0.32. The company has a debt-to-equity ratio of 0.52, a current ratio of 3.24 and a quick ratio of 1.18. Brown Forman has a 1-year low of $23.01 and a 1-year high of $31.14.

Trending Headlines about Brown Forman

Here are the key news stories impacting Brown Forman this week:

• Positive Sentiment: Brown-Forman reported $0.38 in adjusted EPS on approximately $911 million in revenue. Earnings were described as in line with estimates by some reports and slightly ahead by others, providing a modest positive surprise. Brown-Forman Posts $0.38 EPS for Q1 2027, In Line With Estimates
• Positive Sentiment: The company continues to offer cash-generation and dividend appeal, with analysts highlighting its relatively attractive cash yield. Its balance sheet also remains reasonably strong, including a current ratio above 3. Brown-Forman Q1: Decent Cash Yield, Uninspiring Growth Prospects
• Neutral Sentiment: First-quarter profitability was solid, but management cautioned that the quarter’s margin could be the high point for the fiscal year, suggesting that upcoming quarters may face cost, pricing, or mix pressure. Jack Daniel’s parent Brown-Forman warns first-quarter margin may be the year’s high point
• Negative Sentiment: Quarterly sales declined amid a slowdown in tequila, adding to concerns about weak momentum in the broader spirits market. The results reinforce expectations for limited near-term revenue growth. Brown-Forman Quarterly Sales Slip on Tequila Slowdown
• Negative Sentiment: Management flagged soft alcohol demand for the remainder of the year and said conditions in Canada are unlikely to improve soon. Those comments, combined with “uninspiring” growth prospects, are the main reasons investors may be marking down BF.A despite the acceptable EPS result. Jack Daniel’s maker flags soft alcohol demand for year

Brown Forman Company Profile

Brown-Forman Corporation manufactures, bottles, imports, exports, markets, and sells various alcoholic beverages. It provides spirits, wines, whiskey spirits, whiskey-based flavored liqueurs, ready-to-drink and ready-to-pour products, ready-to-drink cocktails, vodkas, tequilas, champagnes, brandy, bourbons, and liqueurs. The company offers its products primarily under the Jack Daniel's, Woodford Reserve, Canadian Mist, GlenDronach, BenRiach, Glenglassaugh, Old Forester, Early Times, Slane Irish Whiskey, Coopers' Craft, el Jimador, Herradura, New Mix, Pepe Lopez, Antiguo, Finlandia, Korbel Champagne, and Sonoma-Cutrer brands.