“We see this as pro- growth and as a further investment in the near double-digit growth that B-F has enjoyed in well-developed international markets. EBIT margin at 36.5% fell 140 BP yet was better than estimates (PVTL 34.8%/Street 35.6%) on a decline in SG&A; advertising spending fell 8%. The adjusted tax rate was 19.5%, favorable to our estimate and 830 BP lower than LY. Average diluted shares outstanding were up 0.1%; yet the company repurchase $122 million of its shares in the quarter. FY19 guidance remains $1.65-$1.75 compares to and GAAP EPS of $1.53. Guidance continues to imply 6%-7% underlying FY19 sales growth and the tariffs are assumed to remain. Our estimates remain $1.75 for for FY20. We have trimmed our sales growth slightly, but EBIT margins are a bit higher than previously and tax rate is a bit lower.”,” the firm’s analyst commented.
BF.B has been the topic of a number of other research reports. Zacks Investment Research cut Brown-Forman from a hold rating to a sell rating in a report on Wednesday, August 8th. Jefferies Financial Group started coverage on Brown-Forman in a report on Friday, September 7th. They set a hold rating on the stock. Finally, Deutsche Bank increased their target price on Brown-Forman from $52.00 to $53.00 and gave the company a hold rating in a report on Thursday, August 30th. Two research analysts have rated the stock with a sell rating, five have issued a hold rating and three have issued a buy rating to the stock. The company presently has a consensus rating of Hold and an average target price of $59.92.
Shares of NYSE:BF.B opened at $45.93 on Wednesday. The firm has a market cap of $22.51 billion, a price-to-earnings ratio of 31.03, a P/E/G ratio of 3.09 and a beta of 0.85. The company has a debt-to-equity ratio of 1.53, a quick ratio of 1.35 and a current ratio of 3.06. Brown-Forman has a one year low of $45.62 and a one year high of $59.58.
The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, January 2nd. Stockholders of record on Thursday, December 6th will be issued a dividend of $0.166 per share. This is a boost from Brown-Forman’s previous quarterly dividend of $0.16. The ex-dividend date is Wednesday, December 5th. This represents a $0.66 annualized dividend and a dividend yield of 1.45%. Brown-Forman’s dividend payout ratio (DPR) is 44.59%.
Brown-Forman Corporation is a spirit and wine company. The Company manufactures, bottles, imports, exports, markets and sells a range of alcoholic beverages. The Company has a portfolio of approximately 40 spirit, wine and ready-to-drink cocktail (RTD) brands. Its principal brands include Jack Daniel’s Tennessee Whiskey, Jack Daniel’s RTDs, Jack Daniel’s Tennessee Honey, Gentleman Jack Rare Tennessee Whiskey, Jack Daniel’s Tennessee Fire, Jack Daniel’s Single Barrel Collection, Jack Daniel’s Sinatra Select, Jack Daniel’s Winter Jack, Jack Daniel’s No.
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