Constellation Brands (STZ) Tops Q2 EPS by 27c, Revenues Beat; Boosts FY19 EPS Above Consensus

October 4, 2018 7:34 AM EDT

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Constellation Brands (NYSE: STZ) reported Q2 EPS of $2.87, $0.27 better than the analyst estimate of $2.60. Revenue for the quarter came in at $2.3 billion versus the consensus estimate of $2.25 billion.


  • Increases fiscal 2019 reported basis EPS outlook to $14.10 - $14.25 and comparable basis EPS outlook to $9.60 - $9.75; excludes impact of the pending additional investment in Canopy Growth Corporation
  • Achieves reported basis EPS of $5.87 and comparable basis EPS of $2.87, an increase of 136% and 16%, respectively
  • Reported basis results reflect $639 million unrealized gain for an increase in fair value of the initial investment in Canopy Growth Corporation; $1.3 billion unrealized gain has been recognized since investment in November 2017
  • Generates $1.3 billion of operating cash flow and $968 million of free cash flow, an increase of 21% and 62%, respectively
  • Affirms fiscal 2019 operating cash flow target of approximately $2.45 billion and free cash flow projection of $1.2 - $1.3 billion
  • Plans additional $4 billion investment in Canopy Growth Corporation; transaction expected to close at the end of October
  • Repurchases 1.9 million shares of common stock for $404 million for the second quarter; 2.4 million shares for $504 million for the first half fiscal 2019


Constellation Brands sees FY2019 EPS of $9.60-$9.75, versus the consensus of $9.32.

For earnings history and earnings-related data on Constellation Brands (STZ) click here.

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