Brown-Forman Earnings: Resilient Premium Spirits Demand and Jack & Coke Release Buoy Growth Outlook

We expect to maintain our $67 fair value estimate for wide-moat Brown-Forman after absorbing the firm’s fiscal 2023 (ended in April) results that edged our projections on the top line (7.5% versus 7.1%) thanks to the firm’s strong performance across the whiskey, tequila, and ready-to-drink beverage categories. While demand held up well, results came in a touch soft on the EPS line ($1.63 versus $1.72) given ongoing input cost pressure. Our 10-year forecasts for mid-single-digit annual revenue growth and mid-30s average operating margins remain in place. Shares trade in a range we’d consider fairly valued.