Constellation Brands, Inc. ($STZ) Earnings (Q4 FY22)

 Constellation Brands, Inc. ($STZ) Earnings and Opinion:


Constellation Brands, Inc. is a company in the Consumer Defensive sector and operates in the Beverages-Wine and Distilleries industry. The company produces and sells beer, wine, and spirits in the United States, Canada, Mexico, New Zealand, and Italy. Constellation Brands was founded in 1945 and is currently headquartered in Victor, New York. The company made its debut on the stock market in 1992.

Constellation Brands, Inc. EPS and Revenue (Q4 FY22):

  • EPS of $2.37 beating expectations of $2.15
  • Revenue of $2.1B beating expectations of $2.02B
  • EPS was up 30% (YOY) and Revenue was up 8% (YOY)
Constellation Brands, Inc. EPS and Revenue (FY22):
  • EPS of $10.20 beating expectations of $10.09
  • Revenue of $8.8B beating expectations of $8.73B
  • EPS was up 2% (YOY) and Revenue was up 2% (YOY)
Constellation Brands, Inc. Outlook (FY23):
  • EPS of $11.15-$11.45
  • Operating cash flow of $2.6B-$2.8B
  • Free cash flow of $1.3B-$1.4B
Opinion:
Shares of Constellations Brands are currently moving higher after reporting earnings this morning. The company beat its expectations on both EPS and Revenue. The Beer sector of the business was able to bring in strong net sales growth despite cost of goods rising for the product. They were also able to achieve operating cash flow of $2.7B and free cash flow of $1.7B. After wrapping up a pretty strong fiscal year, given the circumstances and headwinds a lot of production companies are facing with supply-chain woes and rising costs, the company gave an outlook for 2023 fiscal year. Constellation Brands looks to bring in about $11.15-11.45 for EPS and operating cash flow and free cash flow look to come in mild, maybe a tad bit lower than this past fiscal year. I still like where the company is headed though. Constellation seems to be continually growing by picking up acquisitions as well as growing their products. Personally, I had never heard of this company until today. Now that I know who they are, I am quite interested to see what they have to offer. I feel like this is more of a staple stock that is going to see an average return over time while paying out a dividend to give back to the shareholder. They only pay a 1.31% dividend, but that is better than nothing. I think if this company keeps growing, it will be hard to keep away from. If you think about the products they supply (beer, wine, and spirits), those won't be going away anytime soon and will continually be bought and consumed. This isn't a bad stock to own at all.


*Information from Yahoo Finance, Constellation Brands, and Nasdaq
*Estimates attained from Zacks 

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