Overview

• U.S. spirits maker's Q4 revenue rose 2%, beating analyst expectations

• Q4 diluted EPS fell 62% yr/yr to $0.12

• Company completed $400 mln share repurchase program in fiscal 2026

Outlook

• Company expects fiscal 2027 organic net sales to be approximately flat

• Brown-Forman sees fiscal 2027 organic operating income declining 3% to 5%

• Company anticipates fiscal 2027 effective tax rate of 20% to 22%

Result Drivers

• INNOVATION & NEW PRODUCTS - Launch of Jack Daniel’s Tennessee Blackberry and innovation portfolio supported sales growth, per CEO Lawson Whiting

• EMERGING MARKETS & TRAVEL RETAIL - Net sales growth in emerging markets and travel retail channel helped offset declines in the U.S.

• HIGHER COSTS & IMPAIRMENT CHARGES - Operating income declined due to higher non-cash impairment charges and increased SG&A expenses

Company press release: ID:nBwbZ91QSa

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 10 "hold" and 4 "sell" or "strong sell"

• The average consensus recommendation for the distillers & wineries peer group is "buy."

• Wall Street's median 12-month price target for Brown-Forman Corp is $28.00, about 13.1% above its June 3 closing price of $24.76

• The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 17 three months ago

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