Earnings Results

Liquor giant Brown-Forman’s stock rises on growth signals ahead despite market challenges

Company seeing traction in international markets as well as a boost from Woodford Reserve and Old Forester whiskeys

Last Updated: Dec. 5, 2024 at 3:46 p.m. ET
First Published: Dec. 5, 2024 at 8:56 a.m. ET

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Brown-Forman Corp.’s stock rose 11% as the top gainer in the S&P 500 on Thursday after the liquor maker beat Wall Street estimates for profit and revenue in its latest quarter and said it expects to generate positive net sales and operating income in its current fiscal year despite “macroeconomic uncertainties.”

Core whiskey sales dipped 1%, but the company booked growth from its Woodford Reserve and Old Forester brands.

Truist analyst Bill Chappell reiterated a buy rating on Brown-Forman’s stock and said the company signaled an increase in distributor whiskey inventories.

“This is the first time we have heard this from any player in the spirits category in over two years,” Chappell said in a research note. “[The] results should calm investor fears that the American whiskey category is in a free fall and get investors interested in the category once again.”

Brown-Forman’s

second-quarter 2025 profit rose 7% to $258 million, or 55 cents a share from $242 million, or 50 cents a share, in the year-ago quarter.

Brown-Forman beat the FactSet consensus estimate of 49 cents a share.

Sales fell 1% to $1.11 billion and topped analysts’ expectation of $1.07 billion.

The sales dip was mostly due to the sale of its Sonoma-Cutrer and Finlandia brands, the company said.

Looking ahead, Brown-Forman said a boost from international markets and the “benefit of normalizing industry trends” will help it generate organic net sales and organic operating income in fiscal 2025.

“This outlook is tempered by our belief that global macroeconomic and geopolitical uncertainties will continue to create a challenging operating environment,” the company said.

Prior to Thursday’s trading, Brown-Forman’s stock had fallen 28% so far in 2024, while the S&P 50

has risen by 27.6%.