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Why Is Brown-Forman B (BF.B) Up 2.4% Since Last Earnings Report?
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A month has gone by since the last earnings report for Brown-Forman B (BF.B - Free Report) . Shares have added about 2.4% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Brown-Forman B due for a pullback? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent drivers for Brown-Forman Corporation before we dive into how investors and analysts have reacted as of late.
Brown-Forman has reported third-quarter fiscal 2026 results, wherein the bottom and top lines beat the Zacks Consensus Estimate and grew year over year. In the fiscal third quarter, earnings per share (EPS) of 58 cents inched up 1% year over year and surpassed the Zacks Consensus Estimate of 48 cents.
Net sales of $1.056 billion jumped 2% on a reported basis and beat the Zacks Consensus Estimate of $1.000 billion. On an organic basis, net sales edged up 1% from the prior-year period.
Brown-Forman’s Margins & Expenses
In the fiscal third quarter, BF.B’s gross profit of $640 million jumped 4% year over year on a reported but decreased 1% on an organic basis. Also, the gross margin expanded 80 basis points (bps) to 60.6%, aided by the effect of acquisitions and divestitures. This gain was partly offset by higher costs.
Selling, general and administrative (SG&A) expenses of $184 million were up 3% year over year.
Operating income jumped 21% year over year to $340 million on a reported basis and fell 9% on an organic basis. The operating margin of 32.2% increased 510 bps from the year-ago quarter.
Understanding Brown-Forman’s Market Performance
In the first nine months of fiscal 2026, net sales in the United States decreased 8% year over year on a reported basis and 1% on an organic basis, reflecting the end of the Korbel relationship and the absence of the Sonoma-Cutrer prior-year TSA, and weak volumes of Jack Daniel’s Tennessee Whiskey. Such declines were partly offset by innovations, led by Jack Daniel’s Tennessee Blackberry, increased net pricing across the portfolio on changes to its distributor relationship terms and solid volumes of Woodford Reserve owing to the timing of distributor ordering patterns in the company’s transition markets.
The Travel Retail channel’s net sales jumped 9% on a reported basis and 7% on an organic basis, owing to increased passenger traffic leading to solid volumes of Jack Daniel’s Tennessee Whiskey and the positive impact of foreign exchange.
A Peek at BF.B’s Brand Performance
In the nine months of the fiscal year, net sales for Whiskey products were up 2% year over year on a reported basis and 1% on an organic basis, backed by innovation. The launch of Jack Daniel’s Tennessee Blackberry, gains from foreign exchange and growth of Jack Daniel’s Tennessee Apple in Brazil were somewhat offset by decreases of Jack Daniel’s Tennessee Whiskey and Jack Daniel’s Tennessee Honey.
Net sales for the Tequila portfolio dipped 6% on a reported and 7% on an organic basis. Herradura’s net sales dipped 11% on a reported basis and 12% on an organic basis, led by soft volumes in the United States, as the tequila category has been competitive. el Jimador’s net sales inched down 3% on a reported basis and 4% on an organic basis, backed by decreases in the United States and Mexico, partly offset by increased volumes in Colombia.
Net sales for the Ready-to-Drink (RTD) portfolio rose 8% on a reported basis and 6% on an organic basis. Net sales of New Mix surged 37% on a reported and 34% on an organic basis, bolstered by market share gains in Mexico in an accelerating category and the product’s launch in the United States. Jack Daniel’s RTD/RTP portfolio dipped 3% on a reported basis and 5% on an organic basis, thanks to the absence of American-made beverage alcohol from retail shelves across the majority provinces in Canada, soft volumes in the United States and a decline in net pricing in Germany.
Rest of Portfolio's net sales plunged 34% on a reported basis but jumped 16% on an organic basis, thanks to the unfavorable impact of acquisitions and divestitures, somewhat offset by the distribution of new agency brands in Japan and Mexico, and double-digit growth of Gin Mare and Diplomático.
BF.B’s Financial Health Snapshot
The company ended third-quarter fiscal 2026 with cash and cash equivalents of $383 million and long-term debt of $2.1 billion. Its total shareholders’ equity was $4.1 billion. As of Jan. 31, 2026, BF.B had $709 million in cash from operating activities and free cash flow of $628 million.
What’s Ahead For BF.B in FY26?
Management reiterates expectations for the fiscal year. For fiscal 2026, Brown-Forman still projects an organic net sales decrease in the low-single digit range. Organic operating income is likely to decline in the low single-digit range. Capital expenditures are still projected to be $110-$120 million for the current fiscal year. It has revised the effective tax rate to be 19-21% compared with 21-23% expected earlier.
How Have Estimates Been Moving Since Then?
Since the earnings release, investors have witnessed a downward trend in estimates revision.
VGM Scores
At this time, Brown-Forman B has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. Charting a somewhat similar path, the stock was allocated a score of C on the value side, putting it in the middle 20% for value investors.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Brown-Forman B has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Brown-Forman B belongs to the Zacks Beverages - Alcohol industry. Another stock from the same industry, Boston Beer (SAM - Free Report) , has gained 4.2% over the past month. More than a month has passed since the company reported results for the quarter ended December 2025.
Boston Beer reported revenues of $385.68 million in the last reported quarter, representing a year-over-year change of -4.1%. EPS of -$2.12 for the same period compares with -$1.68 a year ago.
For the current quarter, Boston Beer is expected to post earnings of $1.85 per share, indicating a change of -14.4% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #4 (Sell) for Boston Beer. Also, the stock has a VGM Score of B.
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Why Is Brown-Forman B (BF.B) Up 2.4% Since Last Earnings Report?
A month has gone by since the last earnings report for Brown-Forman B (BF.B - Free Report) . Shares have added about 2.4% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Brown-Forman B due for a pullback? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent drivers for Brown-Forman Corporation before we dive into how investors and analysts have reacted as of late.
Brown-Forman's Q3 Earnings Beat Mark, Organic Sales Rise
Brown-Forman has reported third-quarter fiscal 2026 results, wherein the bottom and top lines beat the Zacks Consensus Estimate and grew year over year. In the fiscal third quarter, earnings per share (EPS) of 58 cents inched up 1% year over year and surpassed the Zacks Consensus Estimate of 48 cents.
Net sales of $1.056 billion jumped 2% on a reported basis and beat the Zacks Consensus Estimate of $1.000 billion. On an organic basis, net sales edged up 1% from the prior-year period.
Brown-Forman’s Margins & Expenses
In the fiscal third quarter, BF.B’s gross profit of $640 million jumped 4% year over year on a reported but decreased 1% on an organic basis. Also, the gross margin expanded 80 basis points (bps) to 60.6%, aided by the effect of acquisitions and divestitures. This gain was partly offset by higher costs.
Selling, general and administrative (SG&A) expenses of $184 million were up 3% year over year.
Operating income jumped 21% year over year to $340 million on a reported basis and fell 9% on an organic basis. The operating margin of 32.2% increased 510 bps from the year-ago quarter.
Understanding Brown-Forman’s Market Performance
In the first nine months of fiscal 2026, net sales in the United States decreased 8% year over year on a reported basis and 1% on an organic basis, reflecting the end of the Korbel relationship and the absence of the Sonoma-Cutrer prior-year TSA, and weak volumes of Jack Daniel’s Tennessee Whiskey. Such declines were partly offset by innovations, led by Jack Daniel’s Tennessee Blackberry, increased net pricing across the portfolio on changes to its distributor relationship terms and solid volumes of Woodford Reserve owing to the timing of distributor ordering patterns in the company’s transition markets.
The Travel Retail channel’s net sales jumped 9% on a reported basis and 7% on an organic basis, owing to increased passenger traffic leading to solid volumes of Jack Daniel’s Tennessee Whiskey and the positive impact of foreign exchange.
A Peek at BF.B’s Brand Performance
In the nine months of the fiscal year, net sales for Whiskey products were up 2% year over year on a reported basis and 1% on an organic basis, backed by innovation. The launch of Jack Daniel’s Tennessee Blackberry, gains from foreign exchange and growth of Jack Daniel’s Tennessee Apple in Brazil were somewhat offset by decreases of Jack Daniel’s Tennessee Whiskey and Jack Daniel’s Tennessee Honey.
Net sales for the Tequila portfolio dipped 6% on a reported and 7% on an organic basis. Herradura’s net sales dipped 11% on a reported basis and 12% on an organic basis, led by soft volumes in the United States, as the tequila category has been competitive. el Jimador’s net sales inched down 3% on a reported basis and 4% on an organic basis, backed by decreases in the United States and Mexico, partly offset by increased volumes in Colombia.
Net sales for the Ready-to-Drink (RTD) portfolio rose 8% on a reported basis and 6% on an organic basis. Net sales of New Mix surged 37% on a reported and 34% on an organic basis, bolstered by market share gains in Mexico in an accelerating category and the product’s launch in the United States. Jack Daniel’s RTD/RTP portfolio dipped 3% on a reported basis and 5% on an organic basis, thanks to the absence of American-made beverage alcohol from retail shelves across the majority provinces in Canada, soft volumes in the United States and a decline in net pricing in Germany.
Rest of Portfolio's net sales plunged 34% on a reported basis but jumped 16% on an organic basis, thanks to the unfavorable impact of acquisitions and divestitures, somewhat offset by the distribution of new agency brands in Japan and Mexico, and double-digit growth of Gin Mare and Diplomático.
BF.B’s Financial Health Snapshot
The company ended third-quarter fiscal 2026 with cash and cash equivalents of $383 million and long-term debt of $2.1 billion. Its total shareholders’ equity was $4.1 billion. As of Jan. 31, 2026, BF.B had $709 million in cash from operating activities and free cash flow of $628 million.
What’s Ahead For BF.B in FY26?
Management reiterates expectations for the fiscal year. For fiscal 2026, Brown-Forman still projects an organic net sales decrease in the low-single digit range. Organic operating income is likely to decline in the low single-digit range. Capital expenditures are still projected to be $110-$120 million for the current fiscal year. It has revised the effective tax rate to be 19-21% compared with 21-23% expected earlier.
How Have Estimates Been Moving Since Then?
Since the earnings release, investors have witnessed a downward trend in estimates revision.
VGM Scores
At this time, Brown-Forman B has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. Charting a somewhat similar path, the stock was allocated a score of C on the value side, putting it in the middle 20% for value investors.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Brown-Forman B has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Brown-Forman B belongs to the Zacks Beverages - Alcohol industry. Another stock from the same industry, Boston Beer (SAM - Free Report) , has gained 4.2% over the past month. More than a month has passed since the company reported results for the quarter ended December 2025.
Boston Beer reported revenues of $385.68 million in the last reported quarter, representing a year-over-year change of -4.1%. EPS of -$2.12 for the same period compares with -$1.68 a year ago.
For the current quarter, Boston Beer is expected to post earnings of $1.85 per share, indicating a change of -14.4% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #4 (Sell) for Boston Beer. Also, the stock has a VGM Score of B.