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Jack Daniel's And Old Forester Parent Brown-Forman Stock Soars Thursday - Here's Why
Brown Forman Inc. (NYSE: BF-B ) (NYSE: BF-A ) shares are trading higher on Thursday after the company reported better-than-expected second-quarter financial results.
The company reported second-quarter earnings per share of 55 cents, beating the street view of 51 cents.
Quarterly sales of $1.095 billion (down 1% year-over-year) beat the analyst consensus estimate of $1.076 billion. Sales rose 3% on an organic basis.
Net sales declines in the year’s first half were primarily due to the Finlandia and Sonoma-Cutrer divestitures.
Operating income rose 1% to $341 million in the second quarter. Gross profit slumped 4% year over year to $646 million.
In the first half of the year, gross profit declined 8% (-4 % organic) primarily due to the Finlandia and Sonoma-Cutrer divestitures. Gross margin contracted 240 basis points, largely due to the timing of input cost fluctuations coupled with high inventory levels, partially offset by favorable price/mix.
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On November 22, the Brown-Forman Board of Directors approved a 4% increase in the quarterly cash dividend to $0.2265 per share on its Class A and Class B common stock. The dividend is payable on January 2, 2025, to stockholders of record on December 6.
Outlook: Brown-Forman’s FY25 outlook includes organic net sales growth and organic operating income growth in the 2% to 4% range.
The effective tax rate is expected to be between 21% and 23%, and the estimated capital expenditure range has been updated to $180 million to $190 million, down from $195 million to $205 million.
Price Action: BF.B shares are trading higher by 9.09% to $44.73 at the last check on Thursday.
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This article Jack Daniel's And Old Forester Parent Brown-Forman Stock Soars Thursday - Here's Why originally appeared on Benzinga.com
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