Why Brown-Forman (BF.B) Shares Are Plunging Today

What Happened:

Shares of alcohol company Brown-Forman (NYSE:BF.B) fell 9.9% in the afternoon session after the company reported third quarter results with revenue falling below analysts' expectations. Its organic revenue also missed Wall Street's estimates. Moving on, the company's outlook for the full year was weak. Specifically, Brown-Forman sees "organic net sales to be flat, reflecting the slower than anticipated growth for the nine months" and 0-2% operating profit growth, below expectations. Overall, this was a weaker quarter for Brown-Forman.

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What is the market telling us:

Brown-Forman's shares are not very volatile than the market average and over the last year have had only 2 moves greater than 5%. In context of that, today's move is indicating the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.

Brown-Forman is down 2.2% since the beginning of the year, and at $55.58 per share it is trading 21.5% below its 52-week high of $70.82 from July 2023. Investors who bought $1,000 worth of Brown-Forman's shares 5 years ago would now be looking at an investment worth $1,138.

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