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Here's Why Brown-Forman's (BF.B) Q1 Earnings Will Likely Beat
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Brown-Forman Corporation (BF.B - Free Report) is slated to release first-quarter fiscal 2023 results on Aug 31. The alcoholic beverage bigwig is likely to deliver revenue growth in the to-be-reported quarter. The Zacks Consensus Estimate for fiscal first-quarter revenues is pegged at $976 million, indicating an increase of 7.7% from that reported in the year-ago quarter.
The consensus mark for the to-be-reported quarter’s earnings is pegged at 45 cents per share, suggesting growth of 12.5% from the year-ago period’s recorded number. Earnings estimates for the fiscal first quarter have moved up by a penny in the past seven days.
The company delivered an earnings surprise of 29.2% in the last reported quarter. Its earnings outperformed the Zacks Consensus Estimate by 8.1%, on average, in the trailing four quarters.
Brown-Forman has been witnessing strong sales trends, driven by increased demand for its brands, mainly the resurgence of Jack Daniel’s Tennessee Whiskey due to the reopening of the on-premise channel. The company has also been benefiting from solid growth across all geographies and the Travel Retail channel despite the adverse effects of supply-chain headwinds. Growth in the tequila categories, mainly Herradura and el Jimado, has also been a key driver in recent quarters. Robust consumer demand, strong portfolio and growth across markets are expected to have aided the top line in the to-be-reported quarter.
BF.B’s commitment to cost-management efforts is expected to have boosted earnings growth in the fiscal first quarter. Brown-Forman is likely to have witnessed operating expense leverage in the to-be-reported quarter, aiding gross margin growth. The company’s gross margin is expected to have gained from the removal of EU and UK tariffs on American whiskey. Lower SG&A expenses are expected to have boosted the operating margin.
However, higher advertising expenses due to continued investments in its brands are likely to have partly dented margins and the bottom line in the to-be-reported quarter. Elevated discretionary spend and expenses like special employee bonuses and costs related to the impacts of Russia’s invasion of Ukraine are anticipated to have been other deterrents.
What the Zacks Model Unveils
Our proven model conclusively predicts an earnings beat for Brown-Forman this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Brown-Forman has a Zacks Rank #3 and an Earnings ESP of +5.03%.
Other Stocks With Favorable Combination
Here are some other companies you may want to consider, as our model shows that these also have the right combination of elements to post an earnings beat:
Campbell Soup (CPB - Free Report) currently has an Earnings ESP of +0.22% and a Zacks Rank #2. The company is anticipated to have registered top and bottom-line growth in fourth-quarter fiscal 2022. The Zacks Consensus Estimate for CPB’s quarterly earnings was unchanged in the last 30 days at 56 cents per share, suggesting 1.8% growth from the year-ago quarter's reported number.
The Zacks Consensus Estimate for Campbell Soup’s quarterly revenues is pegged at $1.97 billion, suggesting growth of 5.2% from the figure reported in the prior-year quarter. CPB has delivered an earnings beat of 10.8%, on average, in the trailing four quarters.
General Mills (GIS - Free Report) currently has an Earnings ESP of +3.63% and a Zacks Rank #2. The company is expected to register top-line growth when it reports first-quarter fiscal 2023 numbers. The Zacks Consensus Estimate for GIS’ quarterly earnings moved down by a penny in the last 30 days to 98 cents per share, suggesting a decline of 1% from the year-ago quarter's reported number.
The Zacks Consensus Estimate for General Mills’ quarterly revenues is pegged at $4.62 billion, which suggests growth of 1.7% from the figure reported in the prior-year quarter. GIS has delivered an earnings beat of 6.5%, on average, in the trailing four quarters.
Calavo Growers (CVGW - Free Report) currently has an Earnings ESP of +2.78% and a Zacks Rank of 3. The company is expected to have registered top and bottom-line growth in third-quarter fiscal 2022. The Zacks Consensus Estimate for CVGW’s quarterly revenues is pegged at $323.8 million, which suggests a rise of 13.6% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for CVGW’s quarterly earnings moved up by a penny in the last 30 days to 36 cents per share, suggesting 311.8% growth from the year-ago quarter's reported number. CVGW has delivered an earnings beat of 24.7%, on average, in the trailing four quarters.
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Here's Why Brown-Forman's (BF.B) Q1 Earnings Will Likely Beat
Brown-Forman Corporation (BF.B - Free Report) is slated to release first-quarter fiscal 2023 results on Aug 31. The alcoholic beverage bigwig is likely to deliver revenue growth in the to-be-reported quarter. The Zacks Consensus Estimate for fiscal first-quarter revenues is pegged at $976 million, indicating an increase of 7.7% from that reported in the year-ago quarter.
The consensus mark for the to-be-reported quarter’s earnings is pegged at 45 cents per share, suggesting growth of 12.5% from the year-ago period’s recorded number. Earnings estimates for the fiscal first quarter have moved up by a penny in the past seven days.
The company delivered an earnings surprise of 29.2% in the last reported quarter. Its earnings outperformed the Zacks Consensus Estimate by 8.1%, on average, in the trailing four quarters.
BrownForman Corporation Price and EPS Surprise
BrownForman Corporation price-eps-surprise | BrownForman Corporation Quote
Key Factors to Note
Brown-Forman has been witnessing strong sales trends, driven by increased demand for its brands, mainly the resurgence of Jack Daniel’s Tennessee Whiskey due to the reopening of the on-premise channel. The company has also been benefiting from solid growth across all geographies and the Travel Retail channel despite the adverse effects of supply-chain headwinds. Growth in the tequila categories, mainly Herradura and el Jimado, has also been a key driver in recent quarters. Robust consumer demand, strong portfolio and growth across markets are expected to have aided the top line in the to-be-reported quarter.
BF.B’s commitment to cost-management efforts is expected to have boosted earnings growth in the fiscal first quarter. Brown-Forman is likely to have witnessed operating expense leverage in the to-be-reported quarter, aiding gross margin growth. The company’s gross margin is expected to have gained from the removal of EU and UK tariffs on American whiskey. Lower SG&A expenses are expected to have boosted the operating margin.
However, higher advertising expenses due to continued investments in its brands are likely to have partly dented margins and the bottom line in the to-be-reported quarter. Elevated discretionary spend and expenses like special employee bonuses and costs related to the impacts of Russia’s invasion of Ukraine are anticipated to have been other deterrents.
What the Zacks Model Unveils
Our proven model conclusively predicts an earnings beat for Brown-Forman this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Brown-Forman has a Zacks Rank #3 and an Earnings ESP of +5.03%.
Other Stocks With Favorable Combination
Here are some other companies you may want to consider, as our model shows that these also have the right combination of elements to post an earnings beat:
Campbell Soup (CPB - Free Report) currently has an Earnings ESP of +0.22% and a Zacks Rank #2. The company is anticipated to have registered top and bottom-line growth in fourth-quarter fiscal 2022. The Zacks Consensus Estimate for CPB’s quarterly earnings was unchanged in the last 30 days at 56 cents per share, suggesting 1.8% growth from the year-ago quarter's reported number.
You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Campbell Soup’s quarterly revenues is pegged at $1.97 billion, suggesting growth of 5.2% from the figure reported in the prior-year quarter. CPB has delivered an earnings beat of 10.8%, on average, in the trailing four quarters.
General Mills (GIS - Free Report) currently has an Earnings ESP of +3.63% and a Zacks Rank #2. The company is expected to register top-line growth when it reports first-quarter fiscal 2023 numbers. The Zacks Consensus Estimate for GIS’ quarterly earnings moved down by a penny in the last 30 days to 98 cents per share, suggesting a decline of 1% from the year-ago quarter's reported number.
The Zacks Consensus Estimate for General Mills’ quarterly revenues is pegged at $4.62 billion, which suggests growth of 1.7% from the figure reported in the prior-year quarter. GIS has delivered an earnings beat of 6.5%, on average, in the trailing four quarters.
Calavo Growers (CVGW - Free Report) currently has an Earnings ESP of +2.78% and a Zacks Rank of 3. The company is expected to have registered top and bottom-line growth in third-quarter fiscal 2022. The Zacks Consensus Estimate for CVGW’s quarterly revenues is pegged at $323.8 million, which suggests a rise of 13.6% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for CVGW’s quarterly earnings moved up by a penny in the last 30 days to 36 cents per share, suggesting 311.8% growth from the year-ago quarter's reported number. CVGW has delivered an earnings beat of 24.7%, on average, in the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.