Constellation Brands Q2 Earnings Top Estimates - Constellation Brands (NYSE:STZ)

Constellation Brands Inc STZ reported second-quarter FY23 net sales growth of 12% year-on-year to $2.65 billion, beating the consensus of $2.51 billion.
Net sales for the Beer segment grew 15% Y/Y to $2.13 billion, and Wine and Spirits rose 1% Y/Y to $515.8 million.
Shipment volume for Beer increased 12.1%, while Wine and Spirits remained flat.
Gross profit of $1.33 billion rose 7.8% Y/Y, while gross margin of 50% contracted by 180 basis points.
Comparable EPS of $3.17 beat the consensus of $2.81. Comparable EPS, excluding Canopy equity losses, was $3.33.
The company generated an operating cash flow of $1.7 billion for six months, a free cash flow of $1.2 billion, and ended the quarter with $165.1 million in cash and equivalents.
Constellation's board declared a quarterly cash dividend of $0.80 per share of Class A Common Stock and $0.72 per share of Class B Common Stock, payable on November 18, 2022, to stockholders of record on November 4, 2022.
Guidance: Constellation sees FY23 comparable basis EPS of $11.20 - $11.60 (prior view $11.20 - $11.50), above the consensus of $11.05.
Price Action: STZ shares are trading lower by 2.50% at $230.06 on the last check Thursday.