The 10-second takeaway
For the quarter ended Oct. 31 (Q2), Brown-Forman missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue was unchanged and GAAP earnings per share increased.
Margins expanded across the board.
Brown-Forman booked revenue of $1.01 billion. The three analysts polled by S&P Capital IQ predicted a top line of $1.05 billion on the same basis. GAAP reported sales were 0.6% lower than the prior-year quarter's $781.1 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.80. The nine earnings estimates compiled by S&P Capital IQ averaged $0.78 per share. GAAP EPS of $0.80 for Q2 were 9.6% higher than the prior-year quarter's $0.73 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 67.5%, 320 basis points better than the prior-year quarter. Operating margin was 33.8%, 220 basis points better than the prior-year quarter. Net margin was 22.3%, 210 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $1.04 billion. On the bottom line, the average EPS estimate is $0.70.
Next year's average estimate for revenue is $3.81 billion. The average EPS estimate is $2.68.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Brown-Forman is hold, with an average price target of $64.80.
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