Constellation Brands Crushes Earnings Estimates
Constellation Brands (NYS: STZ) reported earnings on Oct. 5. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Aug. 31 (Q2), Constellation Brands missed slightly on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue increased slightly and GAAP earnings per share shrank.
Margins dropped across the board.
Constellation Brands recorded revenue of $699.0 million. The six analysts polled by S&P Capital IQ looked for revenue of $710.1 million on the same basis. GAAP reported sales were 1.2% higher than the prior-year quarter's $690.2 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.71. The 10 earnings estimates compiled by S&P Capital IQ predicted $0.54 per share. GAAP EPS of $0.70 for Q2 were 7.9% lower than the prior-year quarter's $0.76 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 40.8%, 20 basis points worse than the prior-year quarter. Operating margin was 18.7%, 270 basis points worse than the prior-year quarter. Net margin was 17.8%, 580 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $746.3 million. On the bottom line, the average EPS estimate is $0.56.
Next year's average estimate for revenue is $2.74 billion. The average EPS estimate is $2.07.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 324 members out of 359 rating the stock outperform, and 35 members rating it underperform. Among 105 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 100 give Constellation Brands a green thumbs-up, and five give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Constellation Brands is outperform, with an average price target of $32.91.
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The article Constellation Brands Crushes Earnings Estimates originally appeared on Fool.com.Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. TMFDisclosureHere
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