Companies and Brands
Constellation Brands Earnings Buoyed by Strong Beer Sales
Published:
Last Updated:
Constellation Brands Inc. (NYSE: STZ) reported its most recent quarterly results before the markets opened on Thursday. The company posted $1.90 in earnings per share (EPS) on $1.94 billion in revenue, while consensus estimates from Thomson Reuters had called for $1.74 in EPS on revenue of $1.75 billion. The fiscal fourth quarter of last year reportedly had EPS of $1.48 and $1.63 billion in revenue.
Fiscal 2018 reported-basis results reflect a benefit of $363 million, or $1.81 EPS, for a net adjustment to deferred and long-term tax liabilities related to recently enacted U.S. tax reform.
Over the past year, Constellation’s Beer portfolio was the number one growth contributor to the U.S. beer market, with all import brand families achieving record volume levels.
During this quarter specifically, strong portfolio depletion performance was driven by the Modelo and Corona brand families, up 18% and 6%, respectively.
Looking ahead to the fiscal 2019 full year, the company expects to see EPS in the range of $9.40 to $9.70. The consensus estimates call for $9.58 in EPS on $8.13 billion in revenue for the year.
For 2018, the company generated record operating cash flow of more than $1.9 billion and $874 million of free cash flow. On the books, cash and cash equivalents totaled $90.3 million at the end of the quarter, compared with $177.4 million at the end of the previous fiscal year.
Rob Sands, CEO of Constellation Brands, commented:
Execution of our Total Beverage Alcohol premiumization strategy for fiscal 2018 produced best-in-class EPS growth of almost 30% as we continued to grow overall market share and improve margins across the business. We also completed significant operational expansion milestones at our Nava brewery and glass plant. We expect to capitalize on this momentum, as we are targeting impressive sales and earnings growth for the coming year.
Shares of Constellation Brands were last seen up nearly 3% at $226.88, with a consensus analyst price target of $251.00 and a 52-week trading range of $160.53 to $231.83.
24/7 Wall St.Want to Retire Early? Start Here (Sponsor)
Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?
Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Have questions about retirement or personal finance? Email us at [email protected]!
By emailing your questions to 24/7 Wall St., you agree to have them published anonymously on a673b.bigscoots-temp.com.
By submitting your story, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
