- Constellation Brands Inc (NYSE:STZ) reported fourth-quarter FY22 sales growth of 7.7% year-on-year, to $2.10 billion, beating the consensus of $2.02 billion.
- Net sales for the Beer segment grew 14% Y/Y to $1.6 billion, and wine and spirits fell 7% Y/Y to $536.8 million.
- Shipment volume for beer increased 9.9%, while wine and spirits declined 18.1%.
- Gross profit of $1.13 billion increased 14% Y/Y, while gross margin of 53.9% expanded by 300 basis points.
- Operating margin of 32.2% expanded by 360 basis points.
- Comparable EPS of $2.37 beat the consensus of $2.09. Comparable EPS, excluding Canopy equity losses, rose 32% Y/Y to $2.55.
- The company generated an operating cash flow of $2.7 billion, a free cash flow of $1.7 billion for the twelve months, and ended the quarter with $199.4 million in cash and equivalents.
- Constellation's board declared a quarterly cash dividend of $0.80 per share of Class A Common Stock and $0.72 per share of Class B Common Stock, payable on May 19, 2022, to stockholders of record on May 5, 2022.
- In addition, Constellation entered into an accelerated share repurchase (ASR) agreement with Bank of America, N.A. to repurchase $500.0 million of its Class A common stock.
- Guidance: Constellation sees FY23 adjusted EPS of $11.20 - $11.50, against the consensus of $11.53.
- Price Action: STZ shares are trading higher by 1.00% at $234.12 in premarket on the last check Thursday.
