The 10-second takeaway
For the quarter ended Jan. 31 (Q3), Brown-Forman met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded. GAAP earnings per share grew significantly.
Margins grew across the board.
Brown-Forman reported revenue of $1.03 billion. The five analysts polled by S&P Capital IQ foresaw revenue of $1.03 billion on the same basis. GAAP reported sales were 6.5% higher than the prior-year quarter's $701.6 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 $0.73. The 11 earnings estimates compiled by S&P Capital IQ predicted $0.70 per share. GAAP EPS of $0.73 for Q3 were 18% higher than the prior-year quarter's $0.62 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 67.8%, 350 basis points better than the prior-year quarter. Operating margin was 31.7%, 230 basis points better than the prior-year quarter. Net margin was 21.1%, 210 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $825.4 million. On the bottom line, the average EPS estimate is $0.50.
Next year's average estimate for revenue is $3.67 billion. The average EPS estimate is $2.69.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Brown-Forman is hold, with an average price target of $67.00.
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