Jack Daniel's parent Brown-Forman stock gains after sales top expectations, amid strength in premium bourbons and RTDs
Shares of Jack Daniel's-parent Brown-Forman Corp. (BFA) edged up 0.3% in premarket trading Wednesday, after the spirits company reported fiscal fourth-quarter profit that matched expectations while sales rose above forecasts, amid strength in premium bourbons and the ready-to-drink category. Net income for the quarter to April 30 rose to $207 million, or 43 cents a share, from $151 million, or 31 cents a share, in the year-ago period. The FactSet consensus for earnings per share was 43 cents. Sales grew 5.0% to $1.05 billion, above the FactSet consensus of $990.4 million. For fiscal 2023, sales for the Jack Daniel's family of brands rose 4%, including 11% growth in ready-to-drink (RTD)/ready-to-pour (RTP) sales, while premium bourbon sales increased 23% and tequila sales increased 10%. "Ready-to-Drinks (RTDs) growth continued to be driven by consumer preference for convenience and flavor," the company said in a statement. For fiscal 2024, the company said it believes "trends will normalize" after two-straight years of double-digit organic sales growth. The stock has slipped 5.2% year to date through Tuesday, while the S&P 500 has gained 11.6%.
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June 07, 2023 08:39 ET (12:39 GMT)
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