Why Jack Daniel's Parent Brown-Forman Shares Are Trading Lower Today

Zinger Key Points
  • Brown-Forman posts Q4 revenue of $964 million, missing the analyst consensus estimate.
  • Brown-Forman sees FY25 organic net sales growth of 2-4%.

Brown-Forman Corp BF BF shares are ticking lower after the company reported fourth-quarter FY24 earnings and provided an outlook.

The company reported a fourth-quarter FY24 sales decline of 8% year-on-year to $964 million, missing the analyst consensus estimate of $1.031 billion.

EPS of $0.56 beat the analyst consensus estimate of $0.41.

The gross margin contracted about 180 basis points Y/Y to 59%. The operating margin expanded 1,040 basis points to 38.9%, and operating income for the quarter climbed 25.8% to $375 million.

The company held $446 million in cash and equivalents as of April-end. Cash provided by operating activities for twelve months totaled $647 million.

Lawson Whiting, Brown-Forman’s President and Chief Executive Officer, shared, “In a challenging year within the spirits industry, Brown-Forman remained agile and focused on the long-term growth of our brands and our business.”

Brown-Forman’s regular quarterly cash dividend of $0.2178 per share on its Class A and Class B Common Stock is payable on July 1 to stockholders of record on June 7.

Outlook: Brown-Forman sees FY25 organic net sales growth of 2-4% and organic operating income growth of 2-4%.

The company anticipates FY24 capital expenditure of $195 million – $205 million.

The company noted that its outlook is tempered by global macroeconomic and geopolitical uncertainties, which will continue to create a challenging operating environment. 

Price Action: BF-A shares are trading lower by 3.04% at $44.33 at the last check Wednesday.

Photo via Shutterstock

Market News and Data brought to you by Benzinga APIs
Actual EPS
EPS Surprise
Actual Rev
Rev Surprise
Posted In: EarningsEquitiesNewsGuidanceMoversGeneralAI GeneratedBriefsStories That Matterwhy it's moving
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!