Constellation Brands' Q4 Earnings Top Estimates

Constellation Brands Inc STZ reported fourth-quarter FY22 sales growth of 7.7% year-on-year, to $2.10 billion, beating the consensus of $2.02 billion.
Net sales for the Beer segment grew 14% Y/Y to $1.6 billion, and wine and spirits fell 7% Y/Y to $536.8 million.
Shipment volume for beer increased 9.9%, while wine and spirits declined 18.1%.
Gross profit of $1.13 billion increased 14% Y/Y, while gross margin of 53.9% expanded by 300 basis points.
Operating margin of 32.2% expanded by 360 basis points.
Comparable EPS of $2.37 beat the consensus of $2.09. Comparable EPS, excluding Canopy equity losses, rose 32% Y/Y to $2.55.
The company generated an operating cash flow of $2.7 billion, a free cash flow of $1.7 billion for the twelve months, and ended the quarter with $199.4 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 May 19, 2022, to stockholders of record on May 5, 2022.
In addition, Constellation entered into an accelerated share repurchase (ASR) agreement with Bank of America, N.A. to repurchase $500.0 million of its Class A common stock.
Guidance: Constellation sees FY23 adjusted EPS of $11.20 - $11.50, against the consensus of $11.53.
Price Action: STZ shares are trading higher by 1.00% at $234.12 in premarket on the last check Thursday.

Momentum12.19

Growth6.15

Quality11.49

Value15.24

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