What to Expect From Brown-Forman's Next Quarterly Earnings Report

Core Viewpoint - Brown-Forman Corporation is facing challenges with declining earnings expectations and stock performance, leading to a cautious outlook from analysts [2][4][5]. Financial Performance - The company is expected to report Q3 2026 earnings of $0.48 per share, a decrease of 15.8% from $0.57 per share in the same quarter last year [2]. - For fiscal 2026, analysts anticipate an EPS of $1.67, reflecting a 9.2% decline from $1.84 in fiscal 2025, but a projected increase to $1.75 in fiscal 2027, indicating a year-over-year growth of nearly 4.8% [3]. Stock Performance - Brown-Forman's stock has declined by 17.1% over the past 52 weeks, underperforming the S&P 500 Index, which rose by 13.7%, and the State Street Consumer Staples Select Sector SPDR ETF, which returned 6.2% [4]. Analyst Ratings - The consensus opinion among analysts is skeptical, with a "Hold" rating overall. Out of 17 analysts, three recommend a "Strong Buy," nine advise a "Hold," one suggests a "Moderate Sell," and four recommend a "Strong Sell" [6]. - The average analyst price target for Brown-Forman is $30.49, suggesting an upside potential of 8.9% from current levels [6]. Recent Developments - On January 16, the stock closed down more than 3% following a downgrade by BNP Paribas analyst Kevin Grundy from "Neutral" to "Underperform," with a revised price target of $24, down from $31, due to structural headwinds in the alcohol industry [5].