Brown-Forman (BF.B) has current dividend yield of 2.2% and analysts expect the company to deliver long-term EPS growth of 10.1%.

This Zacks Rank #2 stock trades at about 17x fiscal 2011 EPS estimates.

Company Description

Brown-Forman Corp. is one of the leading producers and distributors of premium alcoholic beverages in the world. The company has a strong portfolio of 29 brands, including Jack Daniel’s, Southern Comfort, Canadian Mist, and Finlandia. The Kentucky-based company markets its products in more than 135 countries.

Fiscal Third-Quarter Results

Revenue was up by nearly 10% to $861.7 million. Excluding a 17% rise in excise taxes, sales were up 7.6% to $637.4 million.

Brown-Forman reported profit of $107.9 million, or 73 cents per share, down from 81 cents per share in the year prior but that was two cents better than the Zacks Consensus Estimate.

For the full year, the company narrowed its earnings forecast from a range of $2.95 to $3.15 to $2.98 to $3.08 per share.

Higher Estimates

In the last seven days, the Zacks Consensus Estimate for 2010 has increased 4 cents, while consensus estimates for 2011 is up 5 cents.

In addition, Brown-Forman has beaten the Zacks Consensus Estimate for the last five quarters by an average of 15.1%.

Favorable Industry Comps

Brown-Forman’s return on equity is 25.2%, above the industry average of 20.5%. It has a higher dividend yield (2.2% vs. 0%) and a lower debt/equity ratio (0.3% vs. 21.3%).

Zacks Investment Research