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Brown-Forman Stock Rises on Stronger-Than-Expected Results

Brown-Forman revenue jumped 20% to $906 million in the latest quarter. The analyst consensus called for $831 million.
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Brown-Forman  (BF.B) - Get Brown-Forman Corporation Class B Report shares rose Wednesday, after the owner of Jack Daniel’s reported stronger-than-expected results for the fiscal 2022 first quarter ended July 31.

Revenue jumped 20% to $906 million in the quarter from $753 million last year. The FactSet analyst consensus called for $831 million in the latest quarter.

Net income totaled $192 million, or 40 cents a share, down from $324 million, or 67 cents a share a year ago. Analysts called for 39 cents in the latest quarter.

Louisville-based Brown-Forman on Wednesday traded at $72.59, up 3.4% at last check. It has firmed 1% over the past six months.

“Brown-Forman delivered a strong start to fiscal 2022. These results were driven by the strength of our portfolio, which benefited from the re-opening of the on-premise, sustained at-home consumption, and continued premiumization trends.” said Chief Executive Lawson Whiting.

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“While we are optimistic the operating environment will continue to improve, we are closely monitoring the potential volatility associated with the evolving pandemic and continued supply chain disruptions.”

First-quarter highlights included a 20% sales increase for Jack Daniel’s brands, 34% for premium bourbons and 32% for tequilas.

Perhaps the biggest U.S. alcohol company is New York City-based Constellation Brands  (STZ) - Get Constellation Brands, Inc. Class A Report, which owns Corona and Modelo beers among others.

“We now view the firm as one of the most stellar brewers across our global coverage,” Morningstar analyst Jaime Katz wrote last month. “We see the firm’s overall Mexican beer portfolio as auspiciously situated at the confluence of unwavering secular and demographic trends.”

She puts fair value at $252. The stock on Wednesday traded at $215.18, up 1.9% at last check.