This spirits maker just saw its adjusted earnings rise by more than 72% in the fourth quarter, handily beating estimates.
Constellation Brands Inc. (STZ)
from Blue Chip Growth
On Wednesday morning Constellation Brands Inc. (STZ) revealed that it beat fiscal fourth-quarter earnings estimates by a hefty margin. The New York-based beverage maker reported that it earned $157.2 million on $1.29 billion in sales. Compared with a year ago this represents 92% annual earnings growth and 86% sales growth.
According to company leadership, beer sales skyrocketed after Constellation Brands acquired U.S. distribution rights for Corona, Modelo and several other Mexican beers. The company’s top line matched analyst estimates. Excluding one-time items, adjusted earnings were $0.81 per share, which topped the consensus estimate by $0.05, or 7%. Looking ahead to fiscal 2015, Constellation sees adjusted earnings between $3.95 and $4.15 per share. This is comfortably above the Street view of $3.95 EPS. Meanwhile, management expects free cash flow of $425 million to $500 million.
This was a strong earnings report, but the stock got caught up in the general consolidation later in the week. I expect the stock to bounce back. The consensus earnings estimates for this quarter, next quarter and the current fiscal year were all hiked up following the latest quarterly report so Constellation Brands is looking brighter than ever. I recommend you add shares of STZ up to $89.
Louis Navellier, Blue Chip Growth, www.bluechipgrowth.com, 800-718-8289, April 11, 2014