Constellation Brands: Your Cheat Sheet on the Earnings Beat

Constellation Brands Inc. (NYSE: STZ) is a wine company with operations in the U.S., Canada, the United Kingdom, Australia and New Zealand. CONSTELLATION BRANDS, INC (NYSE: STZ) swung to a profit last quarter and beat Wall Street’s expectations in the process.


Earnings: Swung to a profit of $279.8 million ($1.32/diluted share) in the quarter. The beverage company had a net loss of $51 million a year earlier.

Revenue: Rose 0.9% to $715.3 million YoY.

Actual vs. Wall St. Expectations: STZ beat the street, as analysts were expecting EPS of 26 cents/share.

Quoting Management: “Fiscal 2011 marks another year of significant accomplishments as we successfully executed on several of our key strategic goals and business initiatives,” said Rob Sands, president and chief executive officer. “We are realizing the benefits from the implementation of our U.S. distributor initiative through improvements in depletion and consumer take-away trends. We generated record free cash flow, executed an accelerated stock buyback transaction and reduced debt by almost $600 million for the second consecutive year. Additionally, we sold our Australian and U.K. business as part of our efforts to further premiumize our portfolio, improve ROIC and generate profitable organic growth.”

Key Stats: Over the last four quarters, revenue has fallen an average of 1.4% year over year. The biggest drop came when revenue fell 3.6%.

From last quarter, the company’s current liabilities fell from $1.4 billion to $662.9 million.

Today’s Performance: Shares of STZ are trading at $21.68, down 0.5% after yesterday’s monster gain.