Constellation Brands (STZ) Tops Q2 Earnings & Sales Estimates

Constellation Brands Inc. (STZ – Free Report) posted robust second-quarter fiscal 2018 results, wherein both the top and bottom line topped estimates and improved year over year. Notably, this marked the 12th consecutive quarter of earnings beat for the company. Further, to perk up investors’ confidence management raised earnings guidance for fiscal 2018.

Consequently, shares of Constellation Brands rallied nearly 6% in the pre-market trading session following the sturdy results. Further, driven by splendid past performance, this Zacks Rank #2 (Buy) stock jumped 31.5% year to date, outperforming the industry’s 20.7% growth.

During the quarter, Constellation Brands benefited from efforts to drive consumer demand for its robust brand portfolio. Also, results were driven by contributions from acquisitions along with continued strength in the company’s beer business in particular.

Q2 Highlights

The company’s adjusted earnings for second-quarter fiscal 2018 surged 40% year over year to $2.47 per share, surpassing the Zacks Consensus Estimate of $2.16. Reported earnings came in at $2.48 per share, up 42% year over year.

Constellation Brands Inc Price, Consensus and EPS Surprise

Constellation Brands Inc Price, Consensus and EPS Surprise | Constellation Brands Inc Quote

Net sales advanced 3% to $2,084.5 million, on the back of a rise of 8% in organic sales and gains from recent buyouts. Moreover, the top line was ahead of the Zacks Consensus Estimate of $2,058 million, consequently returning to the beat trend after a miss in the prior quarter.

Sales at the company’s beer business improved 12.8%, thanks to 11.7% rise in shipment volumes and depletions growth of 8.1%. Further, beer sales benefited from strong portfolio as well as successful key summer selling season driven by its ‘120 Days of Summer’ marketing campaign. This campaign aided the market share gains in the 4th of July holiday and through the rest of the summer season into the Labor Day.

Print Friendly, PDF & Email

Author: Travis Esquivel

Travis Esquivel is an engineer, passionate soccer player and full-time dad. He enjoys writing about innovation and technology from time to time.

Share This Post On

Submit a Comment

Your email address will not be published. Required fields are marked *