- Constellation Brands‘ second-quarter comparable EPS was $4.32, beating both last year’s figure of $3.70 and the estimate of $4.07.
- Comparable net sales amounted to $2.92 billion, representing a 2.9% increase year-over-year, very close to the estimate of $2.93 billion.
- Beer net sales totaled $2.53 billion, slightly surpassing the estimate of $2.52 billion.
- Wine and spirits net sales were $388.7 million, falling short of the $413.6 million estimate.
- Beer operating income rose by 13% year-over-year to $1.08 billion, exceeding the estimate of $1.02 billion.
- Wine & spirits operating income was $70.5 million, down 13% year-over-year, yet above the estimate of $63.9 million.
- Beer shipment volume increased by 4.6%, surpassing the estimated growth of 4.19%.
- Wine and Spirits depletion volume increased by 2.4%, contrary to the negative estimate of -5.5%.
- Wine and Spirits shipment volume declined by 9.8%, greater than the estimated decrease of 6.26%.
- For the 2025 forecast, Constellation Brands maintains its EPS outlook of $13.60 to $13.80, with an estimate at $13.69.
- The operating cash flow forecast remains between $2.8 billion to $3 billion, with an estimated $2.84 billion.
- Free cash flow is projected to be $1.4 billion to $1.5 billion, compared to an estimate of $1.57 billion.
- Capital expenditure is expected to range from $1.4 billion to $1.5 billion, with an estimated $1.42 billion.
- Net sales are anticipated to grow by 4% to 6%.
- The stock has 24 buy ratings, 2 hold ratings, and no sell ratings.
Constellation Brands on Smartkarma
Independent analyst coverage on Constellation Brands by Baptista Research on Smartkarma reveals a bullish sentiment towards the company’s strong performance. In their insights, titled “Constellation Brands Inc.: Strong Brand Loyalty & Market Position In Beer & Other Major Drivers,” the analysts highlight the company’s solid start to the fiscal year 2025. Constellation Brands showcased significant market outperformance, with its Beer business driving high single-digit sales increases and achieving consecutive quarters of depletion growth.
Continuing their positive outlook, Baptista Research‘s report titled “Constellation Brands: What Is Its Portfolio Transformation Strategy in Wine and Spirits? – Major Drivers” emphasizes the company’s strong Q3 results. The analysts note robust performance in the beer business, leading to over 8% depletion growth for the beer portfolio. Additionally, Constellation Brands executed share repurchases worth $215 million in Q3, maintaining a healthy net leverage ratio. This ongoing success reflects strong consumer demand and consistent growth indicators for the company.
A look at Constellation Brands Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 3 | |
| Growth | 4 | |
| Resilience | 2 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.0 |
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
Constellation Brands, Inc. produces and markets alcoholic beverages across different continents. With a diverse portfolio of wine, beer, and spirits brands, the company operates through subsidiaries and multiple joint ventures. Looking at the Smartkarma Smart Scores, Constellation Brands shows promising signs for the long term. It scores well in growth and momentum, indicating strong potential for future expansion and market performance.
While the company’s value and resilience scores are moderate, the higher scores in growth and momentum suggest a positive outlook ahead. Additionally, the dividend score falls in the middle range, providing investors with a decent return. Overall, Constellation Brands appears to be in a favorable position for sustained growth and market resilience based on the Smart Scores analysis.
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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