Latest news with #PeterGrom
Yahoo
11-06-2025
- Business
- Yahoo
UBS Remains Neutral on Brown-Forman Corporation (BF-B), Trims PT to $30
Brown-Forman Corporation (NYSE:BF-B) is one of the . On June 9, UBS analyst Peter Grom maintained a Neutral rating on Brown-Forman and slashed the price target from $38 to $30. The price target was amended after the company disclosed challenges at the end of FY2025, with future forecasts suggesting that these issues will persist. Brown-Forman Corporation (NYSE:BF-B)'s Q4 results and outlook for the next year fell short of Street estimates. The company's financial outcomes triggered investor concerns about the present hindrances and whether they will continue in the future or remain a temporary setback. A close-up of bottles of whisky and other alcoholic beverages from a winery. The analyst commented that before the Q4 results, investors believed that the biggest headwinds had already been priced into the stock, and the possible cost cutting might result in more profits. However, the actual earnings were not aligned with this optimism, leading people to rethink the company's long-term growth potential. Despite the share price drop, Brown-Forman Corporation (NYSE:BF-B)'s valuation is promising, trading at roughly 17x the earnings, which is less than its 5-year average of about 33x. While the valuation is attractive, the analyst noted that the stock will potentially remain within a specific range until more compelling data emerges about future revenue growth. Brown-Forman Corporation (NYSE:BF-B) is a leading American producer of premium alcoholic beverages, known for iconic brands like Jack Daniel's, Woodford Reserve, and Herradura. While we acknowledge the potential of BF-B as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None.
Globe and Mail
09-04-2025
- Business
- Globe and Mail
Constellation Brands (STZ) Is About to Report Its Earnings Tomorrow. Here Is What to Expect
Constellation Brands (STZ) is set to release its fourth quarter of Fiscal 2025 financials on April 9. Wall Street analysts expect the alcohol company to report earnings of $2.28 per share, representing a 0.9% decrease year-over-year. Meanwhile, revenues are expected to decline by 0.5% from the year-ago quarter to $2.13 billion, according to data from the TipRanks Forecast page. Stay Ahead of the Market: Discover outperforming stocks and invest smarter with Top Smart Score Stocks. Filter, analyze, and streamline your search for investment opportunities using Tipranks' Stock Screener. STZ stock has declined over 22% year-to-date, primarily due to rising aluminum tariffs, ongoing weakness in its Wine and Spirits segment, a lowered sales forecast, and a growing trend of consumers cutting back on alcohol consumption. According to Main Street Data, Wine and Spirits segment contributed $431 million in the quarter ended November 30 ,2024, down 1.6% year-over-year. STZ is an alcohol company that produces beer, wine, and spirits. The company's portfolio features premium brands like Corona, Modelo, Robert Mondavi, and SVEDKA Vodka across the U.S., Canada, Mexico, and other international markets. Analysts' Views Ahead of STZ's Q4 Earnings Ahead of Constellation Brands' Q4 report, UBS analyst Peter Grom pointed out that the company will release results after the market closes on April 9, with a conference call the next morning. This is a change from its usual routine of announcing results and holding the call in the morning. Along with this shift, concerns about tariffs and weaker demand for beer, wine, and spirits have made investors more cautious. In response to recent market trends, Grom lowered his Q4 EPS estimate slightly from $2.30 to $2.29. Still, he thinks the main focus won't be on the numbers themselves but on the company's outlook. While near-term challenges remain, Grom stays positive on the stock over the long run. He believes Constellation Brands can deliver stronger revenue and profit growth than many of its consumer staples peers. Meanwhile, Bank of America analyst Bryan Spillane kept a Hold rating on Constellation Brands with a $205 price target. He raised his Q4 earnings estimate due to a short-term boost from higher inventory levels ahead of a new tariff. However, he expects this benefit to fade in the first half of FY26. Spillane also pointed to ongoing challenges in beer and wine, leading him to take a cautious view on the stock's growth potential. Options Traders Anticipate a 9.36% Move Using TipRanks' Options tool, we can see what options traders are expecting from the stock immediately after its earnings report. The expected earnings move is determined by calculating the at-the-money straddle of the options closest to expiration after the earnings announcement. If this sounds complicated, don't worry, the Options tool does this for you. Indeed, it currently says that options traders are expecting a 9.36% move in either direction. Is Constellation Brands a Good Stock to Buy? Turning to Wall Street, Constellation Brands has a Moderate Buy consensus rating based on 11 Buys and nine Holds assigned in the last three months. At $221.26, the average STZ price target implies 29.42% upside potential. See more STZ analyst ratings Disclosure
Yahoo
10-02-2025
- Business
- Yahoo
Coca-Cola expected to report a quarter of growth as it battles for market share with PepsiCo
Coca-Cola (KO) is expected to post another strong quarter as it gains ground on rival PepsiCo (PEP). The soda giant will be providing 2025 guidance and issuing its fourth quarter earnings report before market open on Tuesday. Wall Street expects Q4 revenue of $10.67 billion and earnings per share of $0.52. The Street also estimates a price/mix increase of 6.71%, while unit case volume growth is expected to decline 0.21%. "It's only a handful of these consumer staple companies that are actually delivering the kind of growth that you would expect, or growth in line with their targets," Bank of America analyst Bryan Spillane told Yahoo Finance. The company strikes "a decent balance between volume growth and price." For the full year, organic revenue is expected to increase 10% as higher prices have helped counter headwinds like more cautious consumers, less favorable commodity costs, and more challenging trends in international markets. "We believe [Coca-Cola's] ability to deliver strong positive mid-single digit organic revenue growth in an environment where many global staples peers are likely to deliver positive low-single digit growth (and in some cases are struggling to hit their algorithm) continues to stand out," UBS analyst Peter Grom said in a note. Shares of the beverage giant are up 7% in the past year, compared to a 16% drop for PepsiCo. It still trails behind the S&P 500's (^GSPC) 20% gain. Here's what Wall Street expects Coca-Cola to report in the fourth quarter, compared to what the company reported a year ago: Revenue: $10.67 billion versus $10.85 billion Adjusted earnings per share: $0.52 versus $0.49 Price/mix growth: 6.71% versus 9.00% Unit case volume growth: -0.21% versus 2.00% Spillane is also watching the Latin America market, adding if the region ends the year "better than the last couple of quarters ... that would be a good sign for 2025." Investors are keeping an eye on whether the company can continue to deliver earnings growth. As the strength of the dollar grew "over the last several months, these concerns have increased considerably," Grom wrote. In the prior quarter, CEO James Quincey said Coca-Cola is willing to pull other levers to offset any weakness from the dollar in its international markets. "Over the last number of years, every time there's been a foreign exchange headwind of this kind of magnitude, we've grown US dollar earnings per share. Maybe not as much as we would have loved, but we've grown it," Quincy said. The impact of potential tariffs and inflation on agriculture commodities, including prices of orange juice, will also be headwinds for management to address. In the previous third quarter earnings call with investors, CFO John Murphy said he expects 2025 to be "a more normalized pricing environment." CFRA analyst Garrett Nelson, who has a Hold on shares, said he expects "stronger sales in emerging markets and newer products, such as Coke Energy and AHA flavored sparkling water, to help support sales." He said risks to the company include "foreign currency, consumer trends ... and lack of product diversification (no food/snack exposure)." Fast food chains like McDonald's (MCD), Burger King (QSR), and Taco Bell (YUM) have been trying to boost foot traffic with value and meal deals. Coca-Cola reportedly played a role in the $5 meal bundle at McDonald's. Costco (COST) will also be converting its food court fountain business back over to Coca-Cola, from rival PepsiCo. — Brooke DiPalma is a senior reporter for Yahoo Finance. Follow her on Twitter at @BrookeDiPalma or email her at bdipalma@ Sign in to access your portfolio
