On Thursday, April 5, alcoholic beverage producer and marketer Constellation Brands (NYSE:STZ) released fourth-quarter and year-end results for the period ended Feb. 28. Here are the quick and dirty details for the quarter.

  • Total sales grew 9% over the prior year's fourth quarter, primarily because of strong branded wines' organic growth and the acquisition of Vincor. This was partially offset by a 56% drop in imported beer and a smaller decrease in spirit sales.      
  • Diluted earnings jumped 21%, but Constellation is still struggling overall, thanks to tough business conditions in the U.K. and Australia.
  • Management expects 2008 reported earnings of $1.21-$1.31, down from this year's $1.38. It's currently calling for free cash flow of $170 million to $190 million, or $0.83-$0.93 per current diluted share.        
  • Constellation carries a three-star rating in the Motley Fool CAPS intelligence database, while rivals Diageo (NYSE:DEO) and Brown-Forman (NYSE:BF-B) (NYSE:BF-A) carry the coveted five-star rating. King of beers Anheuser Busch (NYSE:BUD) and Molson Coors (NYSE:TAP) have three-star ratings.           

(Figures in millions, except per-share data)

Income Statement Highlights

Avg. Est.

Q4 2007

Q4 2006

Change

Sales

$1,100

$1,142

$1,048

9.0%

Net Profit

--

$70

$56

25.8%

EPS

$0.34

$0.29

$0.24

20.8%

Diluted Shares

  

239,566

239,568

(0.0%)

Get back to basics with a look at the income statement.

Margin Checkup

Q4 2007

Q4 2006

Change*

Gross Margin

30.23%

27.33%

2.90

Operating Margin

12.16%

12.47%

(0.31)

Net Margin

6.15%

5.32%

0.83

*Expressed in percentage points.

Margins are the earnings engine.

Balance Sheet Highlights

Assets

Q4 2007

Q4 2006

Change

Cash + ST Invest.

$34

$11

207.3%

Accounts Rec.

$881

$772

14.1%

Inventory

$1,948

$1,704

14.3%

Liabilities

Q4 2007

Q4 2006

Change

Accounts Payable

$376

$313

20.2%

Long-Term Debt

$3,715

$2,516

47.7%

The balance sheet reflects the company's health.

Cash Flow Highlights

Q4 2007

Q4 2006

Change*

Cash From Ops.

$313

$436

(28.2%)

Capital Expenditures

$192

$133

44.9%

Free Cash Flow

$121

$304

(60.1%)

*Capex excludes business acquisitions.

Related Foolishness:

Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean.

Fool contributor Ryan Fuhrmann is long shares of Diageo but has no financial interest in any company mentioned. Feel free to email him with feedback or to discuss any companies mentioned further. Diageo is an Income Investor recommendation. Anheuser-Busch is a  Motley Fool Inside Value recommendation. The Fool has an ironclad disclosure policy.