- Constellation Brands has revised its fiscal year comparable EPS forecast to $13.40 to $13.80, slightly adjusting from $13.60 to $13.80.
- The company anticipates operating cash flow between $2.9 billion and $3.1 billion, up from the previous forecast of $2.8 billion to $3 billion.
- Free cash flow is expected to be between $1.6 billion and $1.8 billion, an increase from the earlier range of $1.4 billion to $1.5 billion.
- Capital expenditure is now projected at $1.3 billion, down from the previous estimate range of $1.4 billion to $1.5 billion.
- Enterprise net sales growth is forecasted at 2% to 5%.
- Projected beer net sales growth is 4% to 7%, adjusted from an earlier 6% to 8% estimate.
- The company expects a decline in wine and spirits net sales between -5% and -8%, compared to the previous forecast of -4% to -6%.
- In the third quarter, comparable EPS reached $3.25, a slight increase from $3.19 year-over-year.
- Comparable net sales for the quarter were $2.46 billion, representing a 0.3% decrease year-over-year.
- Beer net sales came in at $2.03 billion, below the estimated $2.07 billion.
- Wine and spirits net sales were $431.4 million for the quarter, falling short of the $470.7 million estimate.
- Beer operating income increased by 1.7% year-over-year to $769.9 million, though below the $804.6 million estimate.
- Wine & Spirits operating income was down 25% year-over-year at $95.2 million, underperforming the $102.9 million estimate.
- Beer shipment volume grew by 1.6%, short of the 3.66% estimate, while depletion volume rose by 3.2%, below the 4.29% estimate.
- Wine and spirits depletion volume decreased by 4.3%, slightly better than the -5.5% estimates, while shipment volume fell by 16.4% against an estimated -5.64%.
- Constellation Brands declared a quarterly cash dividend of $1.01 per share.
- The stock has received 22 buy ratings, 6 hold ratings, and no sell ratings.
A look at Constellation Brands Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 3 | |
| Growth | 3 | |
| Resilience | 2 | |
| Momentum | 3 | |
| 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
Constellation Brands, a renowned producer and marketer of alcoholic beverages, has garnered a mixed bag of ratings on Smartkarma Smart Scores. While showing moderate levels in Value, Dividend, and Growth, the company shines brighter in terms of Momentum and Resilience. With a diverse portfolio spanning wine, imported beer, and distilled spirits, Constellation Brands operates across North America, Europe, Australia, and New Zealand through a combination of wholly-owned subsidiaries and strategic joint ventures.
Looking towards the long-term future, Constellation Brands appears positioned for steady growth and sustained performance, backed by its solid Momentum and Resilience scores. Although the company may not be perceived as having the highest value based on the Smartkarma Smart Scores, its favorable momentum and resilience ratings highlight a positive outlook for the company’s ongoing success in the competitive alcoholic beverages market. Investors eyeing Constellation Brands can find encouragement in its promising trajectory and diversified brand presence across key regions.
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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