- Constellation Brands maintains its FY comparable EPS forecast at $13.50 to $13.80, with an estimate of $13.65.
- Expected operating cash flow remains between $2.8 billion to $3 billion, with an estimate of $3.06 billion.
- Forecasted free cash flow is $1.4 billion to $1.5 billion, closely aligning with the estimate of $1.51 billion.
- Capital expenditure anticipated to be in the range of $1.4 billion to $1.5 billion, matching the estimate of $1.42 billion.
- Net sales projected to grow by 6% to 7%.
- First Quarter Results:
- Comparable EPS was $3.57, up from $2.91 y/y, exceeding the estimate of $3.47.
- Comparable net sales hit $2.66 billion, a 5.8% increase y/y, just shy of the $2.67 billion estimate.
- Beer net sales were $2.27 billion, slightly less than the $2.28 billion estimate.
- Wine and spirits net sales were $389 million, below the estimate of $398.1 million.
- Beer operating income was $923 million, a 16% y/y increase, beating the $891.2 million estimate.
- Wine & Spirits operating income was $59.7 million, down 25% y/y, and lower than the $67.4 million estimate.
- Beer shipment volume rose by 7.6%, surpassing the 6.85% estimate.
- Beer depletion volume increased by 6.4%, just below the 6.67% estimate.
- Wine and spirits depletion volume decreased by 12.7%, worse than the 7.5% estimate.
- Wine and spirits shipment volume dropped by 5.1%, better than the 7.31% estimate.
- Analyst recommendations: 23 buys, 4 holds, 0 sells.
Constellation Brands on Smartkarma
Analyst coverage of Constellation Brands on Smartkarma includes a recent report by Baptista Research titled “Constellation Brands: What Is Its Portfolio Transformation Strategy in Wine and Spirits? – Major Drivers.” The report highlights Constellation Brands‘ strong Q3 results, fueled by robust beer business performance, with over 8% depletion growth for its beer portfolio. This growth reflects sustained consumer demand, leading to the company’s 55th consecutive quarter of depletion growth and tenth consecutive leading share gains. Additionally, in Q3, Constellation Brands executed $215 million of share repurchases, maintaining a net leverage ratio of 3.2x, excluding Canopy equity and earnings.
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
Constellation Brands, Inc., the alcoholic beverages producer, shows a promising long-term outlook based on its Smartkarma Smart Scores. With solid momentum and growth scores of 4 and 3 respectively, the company is positioned well for future expansion and market performance. While not the highest in value or dividend scores, Constellation Brands maintains respectable scores of 2 in these areas, indicating a balanced approach to financial returns. Moreover, the company’s resilience score of 2 suggests a steady ability to weather market challenges. Overall, Constellation Brands demonstrates a positive outlook for investors looking into the future.
Constellation Brands, Inc. operates with a diversified portfolio of brands in various alcoholic beverage categories across multiple regions. Through its subsidiaries and strategic joint ventures, the company has established a strong presence in North America, Europe, Australia, and New Zealand. Given its favorable Smartkarma Smart Scores, particularly in momentum and growth, Constellation Brands appears well-positioned to drive sustainable growth and profitability. Investors may find Constellation Brands a compelling choice for long-term investment based on its overall outlook and market positioning.
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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