Copyright Barchart
Louisville, Kentucky-based Brown-Forman Corporation (BF.B) manufactures, distills, bottles, imports, exports, markets, and sells various alcoholic beverages. Its offerings include wines, whiskey spirits, ready-to-drink cocktails, vodkas, gin, rum, brandy, bourbons, and more. With a market cap of $13.1 billion, Brown-Forman's operations span the Americas, Europe, Asia, and internationally. The company is expected to announce its second-quarter results by early December. Ahead of the event, analysts expect BF.B to report a profit of $0.48 per share, down 12.7% from $0.55 per share reported in the year-ago quarter. The company has a mixed earnings surprise history. It has surpassed the Street’s bottom-line estimates twice over the past four quarters while missing on two other occasions. For the full fiscal 2026, analysts expect Brown-Forman to deliver an EPS of $1.66, down 9.8% from $1.84 reported in 2025. While in fiscal 2027, its earnings are expected to grow 3.6% year-over-year to $1.72 per share. BF.B stock prices have tanked 41.1% over the past 52 weeks, notably underperforming the S&P 500 Index’s ($SPX) 18.4% gains and the Consumer Staples Select Sector SPDR Fund’s (XLP) 2.3% decline during the same time frame. Brown-Forman’s stock prices dropped 4.9% in the trading session following the release of its mixed Q2 results on Aug. 28. Due to the conclusion of Brown-Forman’s business relationship with Korbel Champagne Cellars and the absence of a transition services agreement related to Sonoma-Cutrer and Finlandia, the company’s revenues observed a notable decline, which was partly offset by revenue gains in other areas. Its topline came in at $924 million, down 2.8% year-over-year, but 1.4% ahead of the Street’s expectations. Meanwhile, its EPS dropped 12.2% year-over-year to $0.36 and missed the consensus estimates by 2.7%, making investors jittery. Analysts remain cautious about the stock’s prospects. Brown-Forman maintains a consensus “Hold” rating overall. Of the 18 analysts covering the stock, opinions include three “Strong Buys,” 12 “Holds,” one “Moderate Sell,” and two “Strong Sells.” Its mean price target of $31.93 suggests a 12% upside potential from current price levels.
