Constellation Brands Earnings: Here’s Why Shares Are Dipping Now

Constellation Brands Inc. (NYSE:STZ) saw its net income decrease, yet revenue climbed in the latest quarterly report unveiled today. Shareholders were not too impressed as shares are down 1.66%.

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Constellation Brands Inc. Earnings Cheat Sheet

Results: Net income increased 4.96% to $110 million (57 cents per diluted share) in the quarter versus a net gain of $104.8 million in the year-earlier quarter.

Revenue: Rose 9.46% to $767 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Constellation Brands Inc. reported adjusted net income of 57 cents per share. By that measure, the company beat the mean analyst estimate of $0.55. It beat the average revenue estimate of $751.83 million.

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Quoting Management: “The year is unfolding as we expected and we are on track to meet our financial and strategic goals for the year,” said Rob Sands, president and chief executive officer, Constellation Brands. “We continue to experience strong marketplace momentum across our beer, wine and spirits portfolio and we were well positioned at retail during the key holiday selling season.  We are especially excited about the prospect of achieving the next significant milestone in the history of our company by obtaining 100 percent ownership of Crown Imports, which will solidify Constellation`s position as the largest U.S. multi-category supplier across the beverage alcohol segment. We continue to expect this transaction to close during the first calendar quarter of this year.”

Key Stats:

Revenue increased 9.81% from $698.5 million in the previous quarter. Net income decreased 11.72% from $124.6 million in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.43 to a profit $0.42. For the current year, the average estimate has moved up from a profit of $2.05 to a profit of $2.07 over the last ninety days.

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(Company fundamentals provided by Xignite Financials.)

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