Next month, the European Union intends to introduce new tariffs on various U.S. imports as a reaction to President Donald Trump's recently implemented taxes on imported aluminum and steel. These taxes took effect on Wednesday.
Brown-Forman Corporation (NYSE:BF.B) will hold its Q3 2025 Earnings Conference Call on March 5, 2025, at 10:00 AM ET. The call will feature company leaders, including Susanne Perram, Campbell Brown, and Lawson Whiting, among others. Participants from various financial institutions will also join the call, but currently, everyone is in listen-only mode.
Brown-Forman, a top spirits producer, has seen a 40% drop in a year, but it still has a solid foundation with a 2.7% dividend yield and an A-rating. The company's well-known brands, such as Jack Daniels, and the rise in ready-to-drink items indicate potential for growth, even with current market challenges. While job cuts and possible tariffs present risks, managing costs and focusing on premium products lead to a cautious price target of $55 per share.
The company that produces Jack Daniel's is selling its barrel-making business because bourbon sales are going down.
Brown-Forman Corp., the company that makes Jack Daniels whiskey, announced on Tuesday that it will reduce its workforce by 12%, which means around 648 jobs will be lost. This decision comes as the company's stock price has reached a 10-year low and it has experienced four consecutive quarters of falling sales.
Brown-Forman's shares are at their lowest price since 2009. Even with difficulties in the industry, the company's long-term revenue and profit margins are steady, showing that it can withstand challenges and has room for growth. Additionally, warning labels on alcohol are not expected to greatly affect demand, much like the limited impact of warnings on cigarettes.
I have a hold rating on Brown-Forman Corporation because it continues to face growth difficulties and is unlikely to reach its sales growth targets for FY25. The results for the second quarter of FY25 show a 1% drop in net sales, although organic growth is at 3% year-on-year, and the EBIT margin has slightly increased to 31.1%. Weak demand, higher promotional efforts, and competition indicate that BF.B may have trouble achieving its FY25 goals, which could affect its margins and stock price.
Brown-Forman Corp (NYSE:BF.B), the producer of Jack Daniel's Tennessee whiskey, saw its stock rise over 10% on the New York Stock Exchange after releasing its financial results for the first half of the year. While sales experienced a slight decrease compared to last year, they met the company's earlier goals, and growth is expected to return soon.
Brown-Forman Corp.'s shares increased by 8% in premarket trading on Thursday after the company surpassed Wall Street's expectations for profit and revenue in its most recent quarter. The liquor producer also mentioned that it anticipates achieving positive net sales and operating income in the current fiscal year, even with "macroeconomic uncertainties."
Brown-Forman has experienced significant challenges in recent quarters after strong performance during the pandemic. It's somewhat comforting to know that other major competitors are dealing with similar issues, suggesting that the difficulties are not unique to Brown-Forman. I believe that the spirits industry, which has seen steady growth for many years, will recover, and this current downturn presents a chance for improvement.