Brown Forman (NYSE:BF.A) Releases Earnings Results

Brown Forman (NYSE:BF.A) posted its quarterly earnings data on Wednesday. The company reported $0.38 earnings per share (EPS) for the quarter, FiscalAI reports. The firm had revenue of $911.00 million for the quarter. Brown Forman had a net margin of 18.42% and a return on equity of 17.80%.

Here are the key takeaways from Brown Forman’s conference call:

• Innovation supported first-quarter performance, with New Mix, the broader ready-to-drink portfolio, and Jack Daniel’s Tennessee Blackberry driving growth. U.S. RTDs contributed approximately one percentage point of value growth, while Blackberry contributed more than two points based on Nielsen trends.
• Brown-Forman reaffirmed its fiscal 2027 outlook, including approximately flat organic net sales and a 3%–5% decline in organic operating income, while expressing greater confidence that profit will trend toward the favorable end of that range.
• Significant headwinds remain, including a more than 60% decline in used-barrel sales, low-teens declines in the full-strength tequila portfolio, and soft consumer demand in developed markets, particularly across Europe.
• Gross margin expanded 40 basis points to 60.2%, earnings per share rose 6% to $0.38, and operating cash flow increased to $173 million. Free cash flow grew to $161 million, supported by lower capital spending and efforts to reduce inventory.
• CEO Lawson Whiting plans to retire after nearly 30 years with the company once a successor is named. Brown-Forman’s board is conducting an internal and external search without providing a specific timeline, with Whiting expected to assist with the transition.

Brown Forman Stock Down 0.1%

NYSE:BF.A opened at $27.88 on Friday. Brown Forman has a twelve month low of $23.01 and a twelve month high of $31.14. The company’s 50 day moving average is $27.74 and its two-hundred day moving average is $27.38. The company has a current ratio of 3.26, a quick ratio of 1.18 and a debt-to-equity ratio of 0.52. The company has a market cap of $12.79 billion, a PE ratio of 17.99 and a beta of 0.32.

Brown Forman News Roundup

Here are the key news stories impacting Brown Forman this week:

• Positive Sentiment: Brown-Forman reported quarterly EPS of $0.38, meeting estimates in some reports and modestly exceeding expectations in others. The company generated $911 million in revenue, an 18.20% net margin and a 17.63% return on equity. Brown-Forman Posts $0.38 EPS for Q1 2027, In Line With Estimates
• Positive Sentiment: The company’s cash-generation profile and shareholder-return potential remain supportive for income-oriented investors, although the appeal is tempered by limited expected growth. Brown-Forman Q1: Decent Cash Yield, Uninspiring Growth Prospects
• Neutral Sentiment: Management’s quarterly performance showed resilient profitability despite a difficult spirits market, but investors appear likely to focus more on the forward outlook than on the EPS result itself. Brown-Forman Corporation 2027 Q1 Results
• Negative Sentiment: Quarterly sales declined as tequila demand slowed, highlighting continued softness across the spirits category and limiting the company’s near-term growth prospects. Brown-Forman Quarterly Sales Slip on Tequila Slowdown
• Negative Sentiment: Brown-Forman warned that first-quarter margin could be the high point for the fiscal year. It also flagged soft full-year alcohol demand and persistent weakness in Canada, suggesting pressure on future earnings and margins. Brown-Forman Warns First-Quarter Margin May Be the Year’s High Point

About Brown Forman

Brown-Forman Corporation manufactures, bottles, imports, exports, markets, and sells various alcoholic beverages. It provides spirits, wines, whiskey spirits, whiskey-based flavored liqueurs, ready-to-drink and ready-to-pour products, ready-to-drink cocktails, vodkas, tequilas, champagnes, brandy, bourbons, and liqueurs. The company offers its products primarily under the Jack Daniel's, Woodford Reserve, Canadian Mist, GlenDronach, BenRiach, Glenglassaugh, Old Forester, Early Times, Slane Irish Whiskey, Coopers' Craft, el Jimador, Herradura, New Mix, Pepe Lopez, Antiguo, Finlandia, Korbel Champagne, and Sonoma-Cutrer brands.