Brown-Forman Corporation's Earnings Report Highlights

Brown-Forman Corporation, trading under the symbol BF-B on the NYSE, is a prominent player in the alcoholic beverage industry, known for its iconic Jack Daniel's brand. The company operates in a competitive market, facing challenges from both traditional competitors and emerging trends like weight-loss drugs and cannabis, which are impacting liquor sales.

On June 5, 2025, Brown-Forman reported its earnings, revealing an EPS of $0.31, which fell short of the estimated $0.34. This was a significant decline from the $0.56 per share reported in the same quarter last year, as highlighted by Zacks. The earnings report reflected a negative surprise of 13.89%, contrasting with the previous quarter's positive surprise of 21.28%.

The company's revenue for the quarter was $894 million, missing the estimated $967.1 million and marking an 8.10% shortfall from the consensus estimate. This was also a decrease from the $964 million reported a year ago. Brown-Forman has only surpassed consensus revenue estimates once in the last four quarters, indicating ongoing challenges in meeting market expectations.

Brown-Forman's stock performance has been significantly affected, with shares plummeting to a 12-year low, marking the worst trading day in its history. The company's shares fell approximately 14% in premarket trading following the announcement of decreased annual revenue and profit projections due to tariffs and subdued consumer spending.

Despite these challenges, Brown-Forman maintains a price-to-earnings (P/E) ratio of approximately 13.12, reflecting the market's valuation of its earnings. The company's financial metrics, such as a price-to-sales ratio of about 3.20 and a debt-to-equity ratio of approximately 0.75, provide insights into its market valuation and financial health. The current ratio of around 3.49 indicates a strong ability to cover short-term liabilities with short-term assets.