NYSE$STZ

Constellation Brands Inc · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Constellation Brands' Q1 2022 earnings were released, showcasing strong performance in the beer business and strategic investments for future growth.

Constellation Brands reported a mixed performance in Q1 2022. The beer business delivered double-digit growth in depletion volume, net sales, and operating income. The wine and spirits business experienced a decline in net sales and operating income, though certain brands performed well. The company generated strong operating and free cash flow, and resumed share repurchase activity. EPS on a reported basis was $(4.74), and comparable EPS was $2.33.

  • Beer business achieved double-digit depletion volume, net sales, and operating income growth.
  • Wine and Spirits business delivered strong organic net sales growth, driven by Meiomi, The Prisoner Brand Family, Simi, Ruffino, and High West.
  • Company generated $716 million in operating cash flow and $602 million in free cash flow.
  • Constellation repurchased 2.2 million shares of common stock for $523 million through June of fiscal 2022.

Headline financials

Total Revenue

$2.03B

Previous: $1.96B+3.2%
EPS (adj)

$2.33

Previous: $2.30+1.3%
Wine and Spirits Shipments

6.7M

Previous: 10.8M-38.0%
Beer Shipments

84.8M

Previous: 76.2M+11.3%
Capital Expenditures

-$114M

Previous: -$144M+21.0%
Free Cash Flow

-$1.02B

Previous: -$322M-217.3%
Net Income

-$908M

Previous: -$178M-410.5%
Operating Income

$75.1M

Previous: $610M-87.7%
Gross Profit

$1.12B

Previous: $988M+13.3%
Cash & Equivalents

$504M

Previous: $303M+66.4%
Total Assets

$26.2B

Previous: $26.1B+0.2%

Revenue & EPS history

Constellation Brands · Revenue · Quarterly

$2.03B

Q1 2022+3.2%vs Q1 2021
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

Constellation Brands · $2.03B total across 2 segments · Q1 2022

  • Beer
    $1.57B+13.6%
  • Wine and Spirits
    $455M-21.5%

Forward guidance

Constellation Brands provided guidance for fiscal year 2022, including net sales and operating income growth targets for the beer business, and net sales decline for the wine and spirits business. The company also provided estimates for interest expense, tax rate, weighted average diluted shares outstanding, operating cash flow, capital expenditures, and free cash flow.

Tailwinds

  • Beer: net sales growth 7 - 9%
  • Beer: operating income growth 3 - 5%
  • Wine and Spirits: organic net sales growth 2 - 4%
  • Operating cash flow: $2.4 - $2.6 billion
  • Free cash flow: $1.4 - $1.5 billion

Headwinds

  • Wine and Spirits: net sales decline 22 - 24%
  • Wine and Spirits: operating income decline 23 - 25%
  • Interest expense: $360 - $370 million
  • Tax rate: reported approximately 37%
  • Capital expenditures: $1.0 - $1.1 billion, including approximately $900 million targeted for Mexico beer operations expansion activities

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q1 2022

Historical avgQ1 2022

+0.4%

Avg return

Earnings day

+0.5%

Avg return

5 days after

+1.0%

Avg return

30 days after

55%

36 / 65 earnings

Positive

+10.8%

Q3 2014

Best reaction

-16.8%

Q3 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2027
Q4 2026-0.1%+9.5%-1.6%
Q3 2026+2.5%+5.7%+11.1%
Q2 2026+1.1%+1.9%-7.8%
Q1 2026+1.3%+1.2%+1.3%
Q4 2025+0.7%+0.3%+3.6%
Q3 2025-16.8%-14.9%-22.7%
Q2 2025-0.8%-4.3%-9.8%
Q1 2025-2.3%+1.1%-4.3%
Q4 2024+2.0%-1.7%-0.4%
Q3 2024+2.5%+5.0%+3.8%
Q2 2024-2.8%-5.3%-2.7%
Q1 2024-0.3%+0.3%+10.4%
Q4 2023+2.9%+2.9%+2.4%
Q3 2023-8.3%-5.3%+1.4%
Q2 2023-2.1%-6.8%+3.1%
Q1 2023-5.1%-4.1%+0.3%
Q4 2022+5.3%+7.5%+7.4%
Q3 2022-3.9%-3.0%-6.8%
Q2 2022-0.7%+3.1%+3.0%
Q1 2022+2.0%+0.9%-2.1%
Q4 2021-5.1%-4.2%+2.0%
Q3 2021+5.5%+4.6%+5.1%
Q2 2021-1.6%-2.1%-11.9%
Q1 2021+6.7%+6.7%+3.8%
Q4 2020-3.4%+9.3%+18.0%
Q3 2020-0.1%-1.1%+4.9%
Q2 2020-6.3%-8.4%-7.6%
Q1 2020+4.2%+6.2%+8.3%
Q4 2019+7.6%+6.2%+17.6%
Q3 2019-7.2%-6.7%+1.7%
Q2 2019+5.9%+7.4%-4.5%
Q1 2019-7.1%-7.5%-7.9%
Q4 2018+3.5%+2.1%+6.2%
Q3 2018-4.0%-2.8%-4.4%
Q2 2018+4.4%+3.4%+7.3%
Q1 2018+5.5%+4.4%+5.9%
Q4 2017+5.6%+5.5%+10.6%
Q3 2017-5.4%-5.5%-5.6%
Q2 2017+3.1%+3.2%-3.8%
Q1 2017+2.6%+4.1%+3.3%
Q4 2016+4.0%
Q3 2016+2.7%
Q2 2016+4.1%
Q1 2016+0.9%
Q4 2015+2.1%
Q3 2015+4.2%
Q2 2015+1.9%
Q1 2015+3.1%
Q4 2014-1.7%
Q3 2014+10.8%
Q2 2014+6.4%
Q1 2014-5.1%
Q4 2013+1.6%
Q3 2013-1.1%
Q2 2013+1.2%
Q1 2013-0.4%
Q4 2012-0.3%
Q3 2012+5.3%
Q2 2012-2.7%
Q1 2012-3.4%
Q4 2011+0.8%
Q3 2010-1.3%
Q2 2010-0.2%
Q1 2010+1.8%
Q4 2009+0.4%

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