Constellation Brands Inc. (STZ - Free Report) , a leading international producer and marketer of beverage alcohol brands, released first-quarter fiscal 2018 results, wherein adjusted earnings of $2.34 a share surpassed the Zacks Consensus Estimate of $1.98. Moreover, the bottom line surged 52% from the year-ago quarter.
Backed by solid growth at its beer business, Constellation Brands raised its fiscal 2018 adjusted earnings forecast to $7.90–$8.10 per share from the previous guidance of $7.70–$8.00. However, the company tweaked its GAAP earnings estimate to $7.55–$7.75 per share, compared with $7.65–$7.95 anticipated earlier.
Earnings Estimate Revision: The Zacks Consensus Estimate has been stable in the last 30 days. Constellation Brands’ performance in the trailing four quarters (excluding the quarter under review) gives a positive picture. The company outperformed the Zacks Consensus Estimate by an average of 7.7% in the trailing four quarters.
Revenues: Constellation Brands generated net sales of $1,936 million that increased 3% year over year but lagged the Zacks Consensus Estimate of $1,949 million. The lag was primarily due to the recent sale of its Canadian wine business. However, this was offset by organic sales growth of 7% and benefits from recent acquisitions.
The company reiterated its sales targets for fiscal 2018. It continues to anticipate beer business sales to grow 9%–11% in fiscal 2018, while sales for the wine and spirits business is expected to decline 4%–6%. These estimates include the expected impact from the divestiture of the Canadian wine business and the benefits from High West, Charles Smith and Prisoner acquisitions.
Key Events: On Jun 16, Constellation Brands acquired Schrader Cellars’ iconic wines, which enhanced its fine wines portfolio. The Schrader Cabernet Sauvignon portfolio is the highest-rated American Cabernet Sauvignon portfolio consisting of wines sourced from the premier vineyards of Napa Valley. The agreement comprises vineyard sourcing, current inventories, and eight Schrader Cabernet Sauvignons. Terms of the deal remained under covers.
In Dec 2016, Constellation Brands completed the sale of its Canadian Wine business to Ontario Teachers' Pension Plan, which is Canada’s largest single-profession pension plan for C$1.03 billion. The sale forms a part of the company’s strategy to focus on premium, margin accretive, growth opportunities.
The company declared a quarterly cash dividend of 52 cents per share for Class A shares and 47 cents per share for Class B shares. These dividends are payable on Aug 23, to shareholders with record as on Aug 9.
Zacks Rank: Currently, Constellation Brands carries a Zacks Rank #2 (Buy) which is subject to change following the earnings announcement. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Stock Movement: Constellation Brands’ shares jumped nearly 4.4% in the pre-market trading hours following the earnings release. Investors developed a positive sentiment following the company’s better-than-expected results and favorable fiscal 2018 view.
Check back later for our full write up on Constellation Brands’ earnings report!
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Constellation Brands Inc. (STZ - Free Report) , a leading international producer and marketer of beverage alcohol brands, released first-quarter fiscal 2018 results, wherein adjusted earnings of $2.34 a share surpassed the Zacks Consensus Estimate of $1.98. Moreover, the bottom line surged 52% from the year-ago quarter.
Backed by solid growth at its beer business, Constellation Brands raised its fiscal 2018 adjusted earnings forecast to $7.90–$8.10 per share from the previous guidance of $7.70–$8.00. However, the company tweaked its GAAP earnings estimate to $7.55–$7.75 per share, compared with $7.65–$7.95 anticipated earlier.
Earnings Estimate Revision: The Zacks Consensus Estimate has been stable in the last 30 days. Constellation Brands’ performance in the trailing four quarters (excluding the quarter under review) gives a positive picture. The company outperformed the Zacks Consensus Estimate by an average of 7.7% in the trailing four quarters.
Revenues: Constellation Brands generated net sales of $1,936 million that increased 3% year over year but lagged the Zacks Consensus Estimate of $1,949 million. The lag was primarily due to the recent sale of its Canadian wine business. However, this was offset by organic sales growth of 7% and benefits from recent acquisitions.
The company reiterated its sales targets for fiscal 2018. It continues to anticipate beer business sales to grow 9%–11% in fiscal 2018, while sales for the wine and spirits business is expected to decline 4%–6%. These estimates include the expected impact from the divestiture of the Canadian wine business and the benefits from High West, Charles Smith and Prisoner acquisitions.
Key Events: On Jun 16, Constellation Brands acquired Schrader Cellars’ iconic wines, which enhanced its fine wines portfolio. The Schrader Cabernet Sauvignon portfolio is the highest-rated American Cabernet Sauvignon portfolio consisting of wines sourced from the premier vineyards of Napa Valley. The agreement comprises vineyard sourcing, current inventories, and eight Schrader Cabernet Sauvignons. Terms of the deal remained under covers.
In Dec 2016, Constellation Brands completed the sale of its Canadian Wine business to Ontario Teachers' Pension Plan, which is Canada’s largest single-profession pension plan for C$1.03 billion. The sale forms a part of the company’s strategy to focus on premium, margin accretive, growth opportunities.
The company declared a quarterly cash dividend of 52 cents per share for Class A shares and 47 cents per share for Class B shares. These dividends are payable on Aug 23, to shareholders with record as on Aug 9.
Zacks Rank: Currently, Constellation Brands carries a Zacks Rank #2 (Buy) which is subject to change following the earnings announcement. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Stock Movement: Constellation Brands’ shares jumped nearly 4.4% in the pre-market trading hours following the earnings release. Investors developed a positive sentiment following the company’s better-than-expected results and favorable fiscal 2018 view.
Check back later for our full write up on Constellation Brands’ earnings report!
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation. See Them Free>>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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