Yahoo Finance Brown-Forman (BF.B) to Post Q3 Earnings: What's in the Cards?
Brown-Forman Corporation (BF.B) is slated to release third-quarter fiscal 2023 results on Mar 8. The alcoholic beverage bigwig’s revenues and earnings are expected to have declined in the to-be-reported quarter. The Zacks Consensus Estimate for fiscal third-quarter revenues is pegged at $1.01 billion, indicating a decline of 2.2% from that reported in the year-ago quarter.
The consensus mark for the to-be-reported quarter’s earnings is pegged at 47 cents per share, suggesting a decline of 13% from the year-ago period’s recorded number. Earnings estimates for the fiscal third quarter have been unchanged in the past 30 days.
We expect the company’s fiscal third-quarter net sales to decline 4.6% year over year to $989.6 million and the bottom line to decline 17.5% to 45 cents per share.
The company delivered a negative earnings surprise of 14.6% in the last reported quarter. In the trailing four quarters, its earnings outperformed the Zacks Consensus Estimate by 8.7%, on average.
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 strong sales trends, driven by increased demand for its brands, mainly the resurgence of Jack Daniel’s Tennessee Whiskey, and growth across all geographic clusters. Sales have been benefiting from an increase in distributor inventories. The company’s geographic clusters and Travel Retail have been reporting robust sales growth, driven by a robust volume. The persistence of these trends is likely to have aided the company’s performance in the fiscal third quarter.
Growth in the tequila categories, mainly Herradura and el Jimado, has also been a key driver in recent quarters. On the last reported quarter’s earnings call, management expected the strength in its brand portfolio, strong consumer demand and easing supply constraints to aid the top line in the quarters ahead.
However, the company has been witnessing rising inflationary and supply-chain issues. Its fiscal third-quarter gross margin is expected to reflect the impacts of input cost inflation, elevated costs resulting from supply-chain disruptions and adverse currency rates.
Despite the cost-management initiatives, Brown-Forman’s higher SG&A and advertising costs have been concerning. Higher advertising expenses due to continued investments in its brands are likely to have partly dented margins and the bottom line in the to-be-reported quarter. Higher compensation expenses are expected to have led to higher SG&A expenses.
What the Zacks Model Unveils
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 has an Earnings ESP of -0.15% and a Zacks Rank #2.
Stocks With Favorable Combinations
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:
General Mills GIS currently has an Earnings ESP of +2.44% and a Zacks Rank #2. The company is anticipated to have registered top and bottom-line growth in third-quarter fiscal 2023. The Zacks Consensus Estimate for GIS’ quarterly earnings moved up 2.3% in the last 30 days to 90 cents per share, suggesting 7.1% growth from the year-ago quarter's reported number.
You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for General Mills’ quarterly revenues is pegged at $4.9 billion, suggesting growth of 8% from the figure reported in the prior-year quarter. GIS delivered an earnings beat of 8.7%, on average, in the trailing four quarters.
Ollie's Bargain Outlet OLLI currently has an Earnings ESP of +4.12% and a Zacks Rank #2. The company is expected to register top and bottom-line growth when it reports fourth-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for OLLI’s quarterly earnings was unchanged in the last 30 days at 80 cents per share, suggesting growth of 15.9% from the year-ago quarter's reported number.
The Zacks Consensus Estimate for Ollie’s quarterly revenues is pegged at $542.9 million, which suggests growth of 8.3% from the figure reported in the prior-year quarter. OLLI delivered a negative earnings surprise of 18.7%, on average, in the trailing four quarters.
Purple Innovation PRPL currently has an Earnings ESP of +44.74% and a Zacks Rank of 2. The company is expected to register bottom-line growth when it reports fourth-quarter 2022 results. The Zacks Consensus Estimate for PRPL’s quarterly revenues is pegged at $144.5 million, which suggests a decline of 22.5% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for PRPL’s bottom line was unchanged in the last 30 days at a loss of 5 cents per share. The consensus mark suggests a narrowed loss per share from 35 cents reported in the prior-year quarter. PRPL has delivered an earnings beat of 7.2%, on average, in the trailing four quarters.
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Brown-Forman Corporation (BF.B) : Free Stock Analysis Report
General Mills, Inc. (GIS) : Free Stock Analysis Report
Ollie's Bargain Outlet Holdings, Inc. (OLLI) : Free Stock Analysis Report
PURPLE INNOVATION, INC. (PRPL) : Free Stock Analysis Report
