We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Things You Must Know Before Brown-Forman's (BF.B) Q2 Earnings
Read MoreHide Full Article
Brown-Forman Corporation (BF.B - Free Report) is set to release second-quarter fiscal 2020 results on Dec 5, before the market opens.
The leading producer and distributor of premium alcoholic beverages delivered a positive earnings surprise of 5.4% in the last reported quarter. Moreover, its bottom line beat estimates by 7%, on average, over the trailing four quarters.
The Zacks Consensus Estimate for the company’s fiscal second-quarter earnings is pegged at 53 cents, which suggests a 1.9% increase from the year-ago quarter’s reported figure. Notably, the consensus mark has been unchanged in the past 30 days. The consensus estimate for fiscal second-quarter sales is pegged at $974 million, indicating 7% growth from the prior-year quarter’s reported number.
Brown-Forman has been witnessing a positive earnings surprise trend on robust brand portfolio, expansion plans, product innovation and shareholder-friendly initiatives. It has been experiencing solid improvement in underlying sales, owing to broad-based growth across geographies and balanced contribution from the brand portfolio.
The company has also been gaining from sustained sales growth in its portfolio of premium spirit brands, particularly bourbon and tequila. Additionally, international expansion for the Jack Daniel’s trademark has been a major contributor to sales growth. These trends are expected to have aided the company’s earnings and sales performance in the fiscal second quarter as well.
Additionally, its continued focus on pricing, product innovation and expanding operations in emerging markets to boost operational performance and strengthen market position is anticipated to get reflected in the results for the fiscal second quarter .
However, Brown-Forman has been grappling with a soft margin trend due to tariff-related and higher input costs, particularly of agave and wood. In the last reported quarter, management had predicted tariff-related and higher input costs will affect gross margin growth throughout fiscal 2020. It expects cost of tariffs to have negatively impacted gross margin and bottom line in the fiscal second quarter.
Furthermore, the impacts of tariffs imposed on American spirits are anticipated to get reflected in the company’s top-line number for the quarter under review.
Zacks Model
Our proven model does not conclusively predict an earnings beat for Brown-Forman this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Brown-Forman carries a Zacks Rank #3 but an Earnings ESP of 0.00% makes surprise prediction difficult.
Stocks Poised to Beat Estimates
Here are some companies that you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:
General Mills, Inc (GIS - Free Report) currently has an Earnings ESP of +1.58% and a Zacks Rank #3.
lululemon athletica inc (LULU - Free Report) has an Earnings ESP of +0.73% and a Zacks Rank #3 at present.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Image: Bigstock
Things You Must Know Before Brown-Forman's (BF.B) Q2 Earnings
Brown-Forman Corporation (BF.B - Free Report) is set to release second-quarter fiscal 2020 results on Dec 5, before the market opens.
The leading producer and distributor of premium alcoholic beverages delivered a positive earnings surprise of 5.4% in the last reported quarter. Moreover, its bottom line beat estimates by 7%, on average, over the trailing four quarters.
The Zacks Consensus Estimate for the company’s fiscal second-quarter earnings is pegged at 53 cents, which suggests a 1.9% increase from the year-ago quarter’s reported figure. Notably, the consensus mark has been unchanged in the past 30 days. The consensus estimate for fiscal second-quarter sales is pegged at $974 million, indicating 7% growth from the prior-year quarter’s reported number.
Brown-Forman Corporation Price and EPS Surprise
Brown-Forman Corporation price-eps-surprise | Brown-Forman Corporation Quote
Key Factors to Note
Brown-Forman has been witnessing a positive earnings surprise trend on robust brand portfolio, expansion plans, product innovation and shareholder-friendly initiatives. It has been experiencing solid improvement in underlying sales, owing to broad-based growth across geographies and balanced contribution from the brand portfolio.
The company has also been gaining from sustained sales growth in its portfolio of premium spirit brands, particularly bourbon and tequila. Additionally, international expansion for the Jack Daniel’s trademark has been a major contributor to sales growth. These trends are expected to have aided the company’s earnings and sales performance in the fiscal second quarter as well.
Additionally, its continued focus on pricing, product innovation and expanding operations in emerging markets to boost operational performance and strengthen market position is anticipated to get reflected in the results for the fiscal second quarter .
However, Brown-Forman has been grappling with a soft margin trend due to tariff-related and higher input costs, particularly of agave and wood. In the last reported quarter, management had predicted tariff-related and higher input costs will affect gross margin growth throughout fiscal 2020. It expects cost of tariffs to have negatively impacted gross margin and bottom line in the fiscal second quarter.
Furthermore, the impacts of tariffs imposed on American spirits are anticipated to get reflected in the company’s top-line number for the quarter under review.
Zacks Model
Our proven model does not conclusively predict an earnings beat for Brown-Forman this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Brown-Forman carries a Zacks Rank #3 but an Earnings ESP of 0.00% makes surprise prediction difficult.
Stocks Poised to Beat Estimates
Here are some companies that you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:
Costco Wholesale Corporation (COST - Free Report) presently has an Earnings ESP of +1.01% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
General Mills, Inc (GIS - Free Report) currently has an Earnings ESP of +1.58% and a Zacks Rank #3.
lululemon athletica inc (LULU - Free Report) has an Earnings ESP of +0.73% and a Zacks Rank #3 at present.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>