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Will Q3 Earnings Hold a Surprise for Brown-Forman (BF.B)?
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Brown-Forman Corporation (BF.B - Free Report) , the leading producer and distributor of premium alcoholic beverages, is set to report third-quarter fiscal 2017 results on Mar 7. The question lingering in investors’ minds now is whether the company will be able to post a positive earnings surprise in the to-be-reported quarter. Brown-Forman outpaced the Zacks Consensus Estimate with an average of 2.8% in the trailing four quarters. Let’s see how things are shaping up prior to this announcement.
What to Expect?
A glimpse of Brown-Forman’s earnings estimate revision reveals that the Zacks Consensus Estimate of 47 cents for the fiscal third quarter has declined by a penny in the past seven days. The Zacks Consensus Estimate of $1.75 for fiscal 2017 has been stable over the said time frame. Further, analysts polled by Zacks expect revenues of $796.12 million for the upcoming release.
Brown-Forman forms part of the Consumer Staples sector. As per the latest Earnings Outlook, we note that the sector’s earnings growth looks impressive. Total earnings for the Consumer Staples sector are estimated to rise 10.8%, whereas revenues are projected to improve 4.7%.
A look at Brown-Forman’s share price movement in the past six months shows that the stock notably outperformed the Zacks categorized Beverages – Alcoholic industry, which occupies space in the top 50% of the Zacks classified industries. While the stock gained 1.4%, the industry declined 7.3%.
What Does the Zacks Model Unveil?
Our proven model does not conclusively show that Brown-Forman is likely to beat earnings estimates this quarter. This is because a stock needs to have both a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) and a positive Earnings ESP for this to happen. You may uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Brown Forman Corporation Price, Consensus and EPS Surprise
Brown-Forman has an Earnings ESP of 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 47 cents. However, the company has a Zacks Rank #3, which increases the predictive power of ESP. But we need to have a positive ESP in order to be confident about earnings surprise.
Factors Influencing the Quarter
Brown-Forman commands a robust portfolio of globally recognized brands and currently owns and produces a multitude of popular spirit brands. We expect the company’s continued focus on pricing, product innovation and expansion of operations in emerging markets to boost its operational performance and strengthen its market position.
Additionally, Brown-Forman expects to grow on the back of strong demand for its authentic American whiskey brands worldwide, consumer interest in flavored whiskey and a growing trend in premium spirits.
However, the company has been battling currency woes for a while now along with tough economic conditions in emerging markets and soft travel retail network. These have been hurting its top line, which missed the Zacks Consensus Estimate in five of the past seven quarters. Further, the company anticipates the perils of currency headwinds, unstable emerging market conditions and an uncertain geopolitical environment to linger in fiscal 2017.
Stocks Poised to Beat Earnings Estimates
Here are some companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:
Constellation Brands, Inc. (STZ - Free Report) has an Earnings ESP of +2.94% and a Zacks Rank #3.
Fred's, Inc. has an Earnings ESP of +15.79% and a Zacks Rank #3.
The Best Place to Start Your Stock Search
Today, you are invited to download the full list of 220 Zacks Rank #1 "Strong Buy" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 "Strong Sells" and other private research. See these stocks free >>
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Will Q3 Earnings Hold a Surprise for Brown-Forman (BF.B)?
Brown-Forman Corporation (BF.B - Free Report) , the leading producer and distributor of premium alcoholic beverages, is set to report third-quarter fiscal 2017 results on Mar 7. The question lingering in investors’ minds now is whether the company will be able to post a positive earnings surprise in the to-be-reported quarter. Brown-Forman outpaced the Zacks Consensus Estimate with an average of 2.8% in the trailing four quarters. Let’s see how things are shaping up prior to this announcement.
What to Expect?
A glimpse of Brown-Forman’s earnings estimate revision reveals that the Zacks Consensus Estimate of 47 cents for the fiscal third quarter has declined by a penny in the past seven days. The Zacks Consensus Estimate of $1.75 for fiscal 2017 has been stable over the said time frame. Further, analysts polled by Zacks expect revenues of $796.12 million for the upcoming release.
Brown-Forman forms part of the Consumer Staples sector. As per the latest Earnings Outlook, we note that the sector’s earnings growth looks impressive. Total earnings for the Consumer Staples sector are estimated to rise 10.8%, whereas revenues are projected to improve 4.7%.
A look at Brown-Forman’s share price movement in the past six months shows that the stock notably outperformed the Zacks categorized Beverages – Alcoholic industry, which occupies space in the top 50% of the Zacks classified industries. While the stock gained 1.4%, the industry declined 7.3%.
What Does the Zacks Model Unveil?
Our proven model does not conclusively show that Brown-Forman is likely to beat earnings estimates this quarter. This is because a stock needs to have both a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) and a positive Earnings ESP for this to happen. You may uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Brown Forman Corporation Price, Consensus and EPS Surprise
Brown Forman Corporation Price, Consensus and EPS Surprise | Brown Forman Corporation Quote
Brown-Forman has an Earnings ESP of 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 47 cents. However, the company has a Zacks Rank #3, which increases the predictive power of ESP. But we need to have a positive ESP in order to be confident about earnings surprise.
Factors Influencing the Quarter
Brown-Forman commands a robust portfolio of globally recognized brands and currently owns and produces a multitude of popular spirit brands. We expect the company’s continued focus on pricing, product innovation and expansion of operations in emerging markets to boost its operational performance and strengthen its market position.
Additionally, Brown-Forman expects to grow on the back of strong demand for its authentic American whiskey brands worldwide, consumer interest in flavored whiskey and a growing trend in premium spirits.
However, the company has been battling currency woes for a while now along with tough economic conditions in emerging markets and soft travel retail network. These have been hurting its top line, which missed the Zacks Consensus Estimate in five of the past seven quarters. Further, the company anticipates the perils of currency headwinds, unstable emerging market conditions and an uncertain geopolitical environment to linger in fiscal 2017.
Stocks Poised to Beat Earnings Estimates
Here are some companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:
Tailored Brands, Inc. has an Earnings ESP of +9.09% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Constellation Brands, Inc. (STZ - Free Report) has an Earnings ESP of +2.94% and a Zacks Rank #3.
Fred's, Inc. has an Earnings ESP of +15.79% and a Zacks Rank #3.
The Best Place to Start Your Stock Search
Today, you are invited to download the full list of 220 Zacks Rank #1 "Strong Buy" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 "Strong Sells" and other private research. See these stocks free >>