Brown-Forman $BF.B just reported a double miss, and the market didn’t hold back.
Shares dropped nearly 18%, marking the worst earnings reaction in company history.
This isn’t an overreaction. It’s a reflection of deepening concerns about the company’s fundamentals.
Organic sales growth is slowing, margins are compressing, and iconic brands like Jack Daniel’s are struggling to maintain momentum in an increasingly competitive and cost-sensitive environment.
What used to be seen as a premium, defensive name in consumer staples is now being priced more like a challenged value trap.
Even before this report, sentiment had been weakening.
The stock has been punished for 8 of the last 12 earnings reports, a sign that investor confidence has been eroding for quarters.
Until management proves it can regain margin control and reignite consistent demand growth, things will continue worsening.
So what else did we learn from this earnings report? Let’s dive into the details.
Here are the latest earnings stats for BF.B 👇
*Click the image to enlarge it
Brown-Forman had a -7.34 reaction score after reporting a double miss.
The company reported revenues of $890M, versus the expected $970M, and earnings per share of $0.31, versus the expected $0.34.
Now let's dive into the data and talk about what happened with this report 👇
BF.B had its worst earnings reaction ever:
Brown-Forman fell 17.9% after this earnings report, and here's why:
Gross profit declined 7%, and diluted earnings per share fell 14% year-over-year.
Shipments closely matched depletions for the first time in six years, meaning the company no longer benefits from distributors building inventory. This is a significant change from recent years.
In addition to the bad quarterly results, the management team lowered its forward guidance.
This has quietly become one of the biggest disaster stories in the S&P 500, and there’s little reason to expect a turnaround anytime soon.
The latest earnings reaction was brutal, reflecting a clear message from the market: the fundamental deterioration is accelerating.
This isn’t a one-off either. The stock has now been punished in 8 of its last 12 earnings reports.
And technically? The damage is done.
Price has broken down from a textbook multi-decade distribution pattern, confirming what the fundamentals have been hinting at for quarters.
If BF.B is below 33, the path of least resistance will likely remain lower for the foreseeable future.
Thank you for reading.
- The Beat Report Team
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