Brown-Forman Stock Ticks Down after Earnings Report

The Brown-Forman stock fell 7.46% following its Q3 earnings statement, even though earnings were better than expected.

Jack Daniel’s parent company saw Q3 earnings that were better than expected, with a $285 million profit. However, the company’s total revenue during the quarter fell somewhat.

Analysts predicted that Brown-Forman Corp would see a price of $0.56 per share, but the company managed to beat the estimates and saw stock shares rise to $0.60. That’s up from $100 million in earnings the previous year for the same quarter, back when Brown-Forman’s stock price was $0.21 a share. The total revenue fell, though, a total of 0.9%.

It is that number that has likely caused the stock price to dip following the earnings report. Revenue was down to $1.07 billion, a decline from last year’s $1.08 billion.

Outperforming but Dropping

The company has outperformed earnings estimates, which could help it in the next quarter, but for now, the stock dip is alarming. Short term losses are expected to continue, as they already have from Tuesday’s nearly 5% drop to Wednesday’s 7.46% drop that is only likely to get worse as the day progresses.

The stock price is up from where it was last month, though. This means that even though the price is dropping, the recent gains have not been eliminated. However, investors hoping that the earnings report would help the stock price are now severely disappointed. Short-term losses might not have negated long-term gains, but the stock’s current performance must be devastating to many investors.

The company managed to do quite well for itself during the last few years, exceeding expectations and holding strong through the pandemic and post-pandemic periods. Brown-Forman has continued to defy expectations as it navigates a struggling global economy and numerous recessions around the world. This may mean that the stock will rebound in the next few months and continue the company’s overall strong performance.