Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Brown-Forman Corporation: An Earnings Preview

Spirits maker Brown-Forman (NYSE: BF-B  ) will report earnings on Wednesday. Here's what you need to watch for in the company's fiscal year 2014 earnings release.

Earnings and sales results
The first issue that needs to be addressed is whether the liquor maker met expectations. For the fiscal year 2014, Brown-Forman anticipates high-single digit sales growth and earnings to come in near $3 per share. Brown-Forman's fiscal third-quarter organic net sales grew 5% to $1.1 billion, while profits jumped by 14% to $0.82 per share. Analysts expected sales of $1.1 billion and earnings of $0.76 a share. Wall Street has loved this spirits maker's stock. It's skyrocketed more than 22% so far this year, compared to the S&P 500's 4% return. 

Whiskey will likely spike sales
With the surging popularity in whiskey, Brown-Forman is doubling down on brown liquor. So far, its bets are paying off. For the first three quarters of fiscal 2014, Brown-Forman enjoyed a 10% jump in Jack Daniel's trademark brand. Meanwhile, its innovative Tennessee Honey grew lip-licking double digits. Vying for a piece of the growing flavored brown spirits market, Brown-Forman's Tennessee Honey grew net sales 99% globally last year! Yet that still represents just 7% of Jack Daniel's sales. The popular Jack Daniel's brand, which has achieved a spot on the Interbrand Best Global Brands list every year since its 2000 inception, jumped 7% in brand value last year. Brown-Forman's super-premium whiskey brands will also likely spike growth. As of the first nine months of Brown-Forman's fiscal 2014, sales of premium whiskey brands grew 16%, including a mouthwatering 27% jump from Woodford Reserve. During Wednesday's earnings announcement, I'll be watching to see what type of growth the company achieved from its whiskey portfolio for the fiscal year.

Recipe for growth
Premium bourbon and Tennessee whiskey sales drove U.S. spirits exports to record-setting highs in 2013, according to the Distilled Spirits Council of the U.S. Louisville-based Brown-Forman knows this, and is hanging its future success on the surging popularity of brown liquor in important emerging markets. In fact, its Jack Daniel's enjoyed 32% growth in Latin America in 2012. Brown-Forman recently opened a new whiskey barrel-making facility in order to meet growing demand for its Jack Daniel's, which the company produced more than 11 million cases of last year.

Foolish takeaway
The spirits maker's commitment to leverage its great brands and successfully increase its presence in emerging markets has resulted in strong quarterly and fiscal year-to-date results. When Brown-Forman reports results on Wednesday, I'll be looking to see how the liquor maker closed out its fiscal year.

Will this stock be your next multi-bagger?
Give us five minutes and we'll show how you could own the best stock for 2014. Every year, The Motley Fool's chief investment officer hand-picks one stock with outstanding potential. But it's not just any run-of-the-mill company. It's a stock perfectly positioned to cash in on one of the upcoming year's most lucrative trends. Last year his pick skyrocketed 134%. And previous top picks have gained upwards of 908%, 1,252% and 1,303% over the subsequent years! Believe me, you don't want to miss what could be his biggest winner yet! Just click here to download your free copy of "The Motley Fool's Top Stock for 2014" today.

Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2977631, ~/Articles/ArticleHandler.aspx, 8/28/2015 3:43:58 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Nicole Seghetti

Nicole is a contributing writer for The Motley Fool. She's worked as a financial advisor and planner for over a decade. Nicole holds an MBA from the University of the Pacific and a chemical engineering degree from Purdue University. She welcomes you to follow her on Twitter.

Today's Market

updated 6 hours ago Sponsored by:
DOW 16,654.77 369.26 2.27%
S&P 500 1,987.66 47.15 2.43%
NASD 4,812.71 115.17 2.45%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

8/27/2015 4:04 PM
BF-B $97.75 Down -0.52 -0.53%
Brown-Forman Corp CAPS Rating: ****