- STZ’s comparable EPS forecast for 2025 outperforms estimates with a value between $13.50 and $13.80, whereas the estimate was $13.43.
- Operating cash flow is forecasted to be between $2.8 billion and $3 billion, slightly below the estimated $3.06 billion.
- The company estimates its free cash flow to fall between $1.4 billion and $1.5 billion, which is less than the estimated $1.67 billion.
- The capital expenditure is projected to be between $1.4 billion and $1.5 billion, exceeding the $1.3 billion estimate.
- STZ’s fourth quarter results showed comparable EPS of $2.26, up from $1.98 a year earlier and beating the estimate of $2.10.
- Comparable net sales registered at $2.14 billion, a 7.1% year-on-year increase and above the estimate of $2.1 billion.
- Beer net sales came up to $1.70 billion, beating the estimate of $1.66 billion.
- Wine and spirits net sales were marginally higher than estimates at $436.4 million.
- Despite a 12% year-on-year increase in beer operating income, the wine & spirits operating income dipped by 13%.
- The company made gains of 3.7% as profit outlook surpassed estimates.
- Modelo Especial reported a 14% increase in depletions in the fourth quarter.
- For fiscal 2025, STZ projects a beer net sales growth of 7% to 9% and a wine and spirits net sales growth between -0.5% and 0.5%.
- Current investment consensus includes 21 buys, 5 holds and 0 sells.
Constellation Brands on Smartkarma
Analyst coverage of Constellation Brands on Smartkarma reveals positive sentiment from Baptista Research. In their report titled “Constellation Brands Inc.: Innovative Strategies Fueling Record Market Shares! – Major Drivers,” Baptista Research highlights how Constellation Brands exceeded revenue and earnings expectations set by Wall Street. The success was attributed to Modelo Especial, which showcased exceptional performance with double-digit volume growth, solidifying its position as the leading US beer brand. The report also suggests that Constellation Brands foresees continued growth in the beer business, driven by trends such as premiumization and the expanding Hispanic population.
A look at Constellation Brands Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 3 | |
| Resilience | 2 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 2.6 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
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Constellation Brands, Inc. is positioned with a diverse portfolio of alcoholic beverage brands across different regions. While the company’s Value and Dividend scores are moderate, its Growth and Momentum scores are notably higher, indicating promising long-term potential in these areas. With a Resilience score in the middle range, Constellation Brands is seemingly well-prepared to navigate market uncertainties. The company’s strategic focus on growth and strong momentum suggest a positive outlook on its future performance.
As a major player in the alcoholic beverages industry, Constellation Brands stands out with its mix of wine, imported beer, and distilled spirits brands. Leveraging its position in North America, Europe, Australia, and New Zealand, the company operates through subsidiaries and strategic joint ventures. With favorable scores in Growth and Momentum, Constellation Brands seems poised for expansion and market success in the long term, providing investors with potential opportunities for growth and value creation.
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Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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