Brown-Forman Corp shares are ticking lower after the company reported fourth-quarter FY24 earnings and provided an outlook.

The company reported a fourth-quarter FY24 sales decline of 8% year-on-year to $964 million, missing the analyst consensus estimate of $1.031 billion.

EPS of $0.56 beat the analyst consensus estimate of $0.41.

The gross margin contracted about 180 basis points Y/Y to 59%. The operating margin expanded 1,040 basis points to 38.9%, and operating income for the quarter climbed 25.8% to $375 million.

The company held $446 million in cash and equivalents as of April-end. Cash provided by operating activities for twelve months totaled $647 million.

Lawson Whiting, Brown-Forman’s President and Chief Executive Officer, shared, “In a challenging year within the spirits industry, Brown-Forman remained agile and focused on the long-term growth of our brands and our business.”

Brown-Forman’s regular quarterly cash dividend of $0.2178 per share on its Class A and Class B Common Stock is payable on July 1 to stockholders of record on June 7.

Outlook: Brown-Forman sees FY25 organic net sales growth of 2-4% and organic operating income growth of 2-4%.

The company anticipates FY24 capital expenditure of $195 million – $205 million.

The company noted that its outlook is tempered by global macroeconomic and geopolitical uncertainties, which will continue to create a challenging operating environment. 

Price Action: BF-A shares are trading lower by 3.04% at $44.33 at the last check Wednesday.