Brown Forman Inc. (NYSE: BF-B ) (NYSE: BF-A ) shares are trading higher on Thursday after the company reported better-than-expected second-quarter financial results.

The company reported second-quarter earnings per share of 55 cents, beating the street view of 51 cents.

Quarterly sales of $1.095 billion (down 1% year-over-year) beat the analyst consensus estimate of $1.076 billion. Sales rose 3% on an organic basis.

Net sales declines in the year’s first half were primarily due to the Finlandia and Sonoma-Cutrer divestitures.

Operating income rose 1% to $341 million in the second quarter. Gross profit slumped 4% year over year to $646 million.

In the first half of the year, gross profit declined 8% (-4 % organic) primarily due to the Finlandia and Sonoma-Cutrer divestitures. Gross margin contracted 240 basis points, largely due to the timing of input cost fluctuations coupled with high inventory levels, partially offset by favorable price/mix.

Also Read: Warren Buffett’s Portfolio Stock Kroger Pauses Buybacks For Albertsons Merger, Narrows FY24 Outlook

On November 22, the Brown-Forman Board of Directors approved a 4% increase in the quarterly cash dividend to $0.2265 per share on its Class A and Class B common stock. The dividend is payable on January 2, 2025, to stockholders of record on December 6.

Outlook: Brown-Forman’s FY25 outlook includes organic net sales growth and organic operating income growth in the 2% to 4% range.

The effective tax rate is expected to be between 21% and 23%, and the estimated capital expenditure range has been updated to $180 million to $190 million, down from $195 million to $205 million.

Price Action: BF.B shares are trading higher by 9.09% to $44.73 at the last check on Thursday.

Read This Next:

Photo by Marian Weyo via Shutterstock

Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market.

Get the latest stock analysis from Benzinga?

This article Jack Daniel's And Old Forester Parent Brown-Forman Stock Soars Thursday - Here's Why originally appeared on Benzinga.com

© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.