Brown-Forman Misses Where It Counts
Brown-Forman (NYS: BF.B) reported earnings on June 6. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended April 30 (Q4), Brown-Forman beat expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue improved slightly and GAAP earnings per share contracted significantly.
Gross margins grew, operating margins dropped, net margins contracted.
Brown-Forman notched revenue of $801.3 million. The six analysts polled by S&P Capital IQ anticipated a top line of $780.2 million on the same basis. GAAP reported sales were 1.2% lower than the prior-year quarter's $610.2 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.73. The nine earnings estimates compiled by S&P Capital IQ predicted $0.76 per share. GAAP EPS of $0.73 for Q4 were 35% lower than the prior-year quarter's $1.13 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 70.0%, 70 basis points better than the prior-year quarter. Operating margin was 24.9%, 140 basis points worse than the prior-year quarter. Net margin was 17.3%, 990 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $891.0 million. On the bottom line, the average EPS estimate is $0.91.
Next year's average estimate for revenue is $3.80 billion. The average EPS estimate is $3.91.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Brown-Forman is hold, with an average price target of $81.00.
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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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