Constellation Brands Beats on Both Top and Bottom Lines

Just the facts, Fool.

Seth Jayson
Seth Jayson
Jan 10, 2013 at 12:00AM
Other

Constellation Brands (NYSE: STZ) reported earnings on Jan. 9. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Nov. 30 (Q3), Constellation Brands beat expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue expanded and GAAP earnings per share contracted.

Gross margins were steady, operating margins dropped, net margins shrank.

Revenue details
Constellation Brands chalked up revenue of $767.0 million. The seven analysts polled by S&P Capital IQ predicted net sales of $748.0 million on the same basis. GAAP reported sales were 9.4% higher than the prior-year quarter's $700.7 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.63. The 11 earnings estimates compiled by S&P Capital IQ averaged $0.55 per share. GAAP EPS of $0.51 for Q3 were 1.9% lower than the prior-year quarter's $0.52 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 40.5%, about the same as the prior-year quarter. Operating margin was 20.7%, 270 basis points worse than the prior-year quarter. Net margin was 14.3%, 70 basis points worse than the prior-year quarter.


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Looking ahead
Next quarter's average estimate for revenue is $663.4 million. On the bottom line, the average EPS estimate is $0.42.

Next year's average estimate for revenue is $2.75 billion. The average EPS estimate is $2.09.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 319 members out of 352 rating the stock outperform, and 33 members rating it underperform. Among 101 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 98 give Constellation Brands a green thumbs-up, and three 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 $40.00.

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