Brown-Forman Corporation (BF.B) is slated to release third-quarter fiscal 2025 results on March 5. The alcoholic beverage bigwig’s revenues are expected to have increased. The Zacks Consensus Estimate for fiscal third-quarter revenues is pegged at $1.07 billion, indicating a rise of 0.4% from the year-ago quarter.

The consensus mark for earnings is pegged at 47 cents per share, indicating a decrease of 21.7% from the year-ago period’s number. Earnings estimates for the fiscal third quarter have been unchanged in the past 30 days.

Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.

In the last reported quarter, the company’s earnings beat the Zacks Consensus Estimate by 7.8%. In the trailing four quarters, BF.B delivered an earnings surprise of 9.4%, on average.

Key Factors Likely to Affect BF.B’s Q3 Results

Brown-Forman has been benefiting from its premiumization strategy and strong brand investments. BF.B has also been on track with its pricing strategy that aims to increase prices, global expansion of its portfolio and revenue growth management initiatives. Such factors, along with gains across its premium and super-premium brands, are likely to have reflected in the company’s top-line performance.

BF.B has been seeing benefits from the easing of supply-chain disruption-related costs and improved operating costs. On its last earnings call, management said that the company’s performance will accelerate in the second half of fiscal 2025, fueled by a strong strategy, diverse portfolio and extensive geographic reach. Gains in the international markets and the benefit of normalizing inventory trends will further aid.

However, Brown-Forman has been grappling with soft performance due to lower volumes across brands and regions. Additionally, the Travel Retail channel’s revenues are being affected by reduced volumes of Jack Daniel’s super-premium expressions, Woodford Reserve and the Finlandia divestiture.

The Zacks Consensus Estimate for the Travel Retail channel’s revenues in the upcoming quarter indicates a decline of 23% from the preceding quarter. The persistence of these factors, along with global macroeconomic and geopolitical uncertainties, is anticipated to have weighed on the company’s third-quarter fiscal 2025 performance.

What the Zacks Model Unveils

Our proven model does not conclusively predict an earnings beat for Brown-Forman this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here. You can uncover the best stocks before they are reported with our Earnings ESP Filter.

Brown-Forman has an Earnings ESP of 0.00% and a Zacks Rank #4 (Sell) at present.

Stocks With the Favorable Combinations

Here are some companies, which according to our model, have the right combination of elements to post an earnings beat:

Costco Wholesale COST currently has an Earnings ESP of +0.14% and a Zacks Rank of 2.  You can see the complete list of today’s Zacks #1 Rank stocks here.

The company is likely to register growth in its top and bottom lines when it reports second-quarter fiscal 2025 numbers. The Zacks Consensus Estimate for Costco’s quarterly revenues is pegged at $63.20 billion, which indicates 8.2% growth from the prior-year quarter. 

The consensus estimate for Costco’s quarterly earnings per share is pegged at $4.09, indicating a 10.2% increase from the year-ago period. COST has a trailing four-quarter earnings surprise of 2%, on average.

Simply Good Foods SMPL currently has an Earnings ESP of +0.09% and a Zacks Rank of 3. The company is likely to register growth in its top line when it reports second-quarter fiscal 2025 numbers. The Zacks Consensus Estimate for Simply Good Foods’ quarterly revenues is pegged at $352.8 million, which indicates an increase of 13% from the prior-year quarter.

The consensus estimate for Simply Good Foods’ quarterly earnings per share is pegged at 39 cents a share, indicating a 2.5% drop from the year-ago period. SMPL has a trailing four-quarter earnings surprise of 5.7%, on average.

Sysco SYY currently has an Earnings ESP of +0.18% and a Zacks Rank of 3. The company is likely to register an increase in the top and bottom lines when it reports first-quarter 2025 numbers. The Zacks Consensus Estimate for quarterly earnings per share is pegged at $1.04, up 8.3% from the year-ago period. SYY has a trailing four-quarter negative earnings surprise of 0.4%, on average.

The consensus estimate for Sysco’s quarterly revenues is pegged at $20.09 billion, which implies an increase of 3.7% from the prior-year quarter.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Brown-Forman Corporation (BF.B) : Free Stock Analysis Report

Costco Wholesale Corporation (COST) : Free Stock Analysis Report

Sysco Corporation (SYY) : Free Stock Analysis Report

The Simply Good Foods Company (SMPL) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research