) reached a new 52-week high of $89.85 yesterday and closed the
trading session at $89.06. Apart from strong third-quarter fiscal
2014 results and an upbeat guidance, the company has been
performing well on the back of brand building and inorganic
growth strategies. Notably, the stock price of this alcoholic
beverage company rose approximately 19.7% year-to-date.
The average volume of shares traded over the last 3 months was
approximately 467K. Moreover, the company currently trades at a
forward P/E of 29.5x, higher than the industry average of 19.6x.
The premium valuation is justified based on its long-term
estimated earnings per share (EPS) growth rate of 11.5%, which is
substantially higher than the industry average of 7.2%.
Investors are optimistic about this Zacks Rank #2 (Buy) stock
after it posted EPS of 82 cents on Mar 5, which handily surpassed
the Zacks Consensus Estimate of 75 cents and rose 13% year over
year. The bottom-line results were primarily attributable to
solid top-line growth, prudent cost management and lower
effective tax rate.
Brown-Forman reported net sales of $1,078 million, marking a
rise of 5% from the prior-year quarter. Moreover, after deducting
excise taxes, sales came in at $782 million, up 4.5% from the
year-earlier quarter figure of $747 million. The rise was
primarily driven by strong demand for whiskey across all regions
where the company operates and its geographical expansion
initiatives. The Zacks Consensus Estimate for the quarter was
Further, bolstered by better-than-expected third-quarter
results, Brown-Forman raised its fiscal 2014 outlook. The company
now expects fiscal 2014 earnings per share in the range of
$2.95-$3.05, up from the previous forecast of $2.80-$3.00.
Currently, the Zacks Consensus Estimate stands at $3.02 per
We expect the company's growth momentum to continue, given its
sustained focus on pricing, product innovation and penetration
into the emerging markets, which facilitate in boosting its
operational performance and strengthening its position. Moreover,
we consider Brown-Forman's consistent focus on developing the
premium Jack Daniel's brand through innovation and packaging
changes to have paid off, making it a thriving company.
Apart from Brown-Forman,
) achieved new 52-week highs of $124.79, $99.56 and $72.90
respectively, on March 19, 2014.
BROWN FORMAN B (BF.B): Free Stock Analysis
DST SYSTEMS (DST): Free Stock Analysis Report
EQUIFAX INC (EFX): Free Stock Analysis Report
UNDER ARMOUR-A (UA): Free Stock Analysis
To read this article on Zacks.com click here.