Brown-Forman Q1 Revenue Misses Slightly, Guides to Flat Sales and Lower Operating Income
BFA sits 17% above its 52-week low of $23.01.
Summary
Brown-Forman's fiscal Q1 revenue fell 1% to $911 million, slightly below the $914.86 million consensus, while EPS rose 6% to $0.38. The company cited the end of the Korbel relationship and a 12% decline in tequila net sales as key drags, partially offset by growth in ready-to-drink products. Management guided fiscal 2027 organic net sales to be approximately flat and organic operating income to decline 3-5%, citing macroeconomic and geopolitical pressures. This follows a 63% drop in Q4 net income reported in June and an unsolicited acquisition proposal from Sazerac that the board rejected in July. The stock trades at 16 times forward earnings, with a median price target of $28.00, about 6% above the prior close.
At the time of this announcement, BFA was trading at $27.01 on NYSE in the Trade & Services sector, with a market capitalization of approximately $12.2B. The 52-week trading range was $23.01 to $31.14. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Reuters.