Brown-Forman
What analysts say:
- Buy, sell, or waffle? Nine analysts currently follow the company. Six recommend you drink in the stock; two suggest you simply hold on to it; one is bearish.
- Revenue. Analysts are projecting $747.5 million in first-quarter sales, or approximately 17% more than last year's second-quarter sales amount.
- Earnings. Analysts see quarterly earnings of $0.82, for a year-over-year gain of almost 8%.
What management says:
Back when Brown-Forman released fourth-quarter results, management said it expected full-year diluted earnings growth of 8%-13%, excluding "transition-related costs" to integrate last year's acquisition of Casa Herradura.
What management does:
The company possesses a favorable mix of steady sales growth, cash flow generation, and double-digit net profit margins. Profitability trends have dipped lately but include a number of charges related to acquisitions and the company's sale of its Hartmann luggage, Lenox crystal, and Brooks & Bentley jewelry businesses.
01/06 |
04/06 |
07/06 |
10/06 |
01/07 |
04/07 |
|
---|---|---|---|---|---|---|
Gross |
66.8% |
67.3% |
67.2% |
67.3% |
67.2% |
66.8% |
Operating |
28.1% |
26.7% |
26.5% |
26.5% |
25.8% |
26.6% |
Net |
16.0% |
16.5% |
19.7% |
20.0% |
18.5% |
17.5% |
One Fool says:
From here on out, alcohol will drive Brown-Forman, as it has successfully sold its non-liquor operating segments. As a result, the company, along with Britain-based Diageo
Current consumer trends favor the above firms, which is working to the detriment of beer-based firms such as Anheuser-Busch
For more related Foolishness:
Diageo is a recommendation of Motley Fool Income Investor. Anheuser-Busch is a recommendation of Motley Fool Inside Value. Whatever your taste preference, the Motley Fool has brewed up an investing service to quench your stock thirst.
Fool contributor Ryan Fuhrmann is long shares of Diageo but has no financial interest in any other company mentioned. Feel free to email him with feedback or to discuss any companies mentioned further. The Fool has an ironclad disclosure policy.