NYSE$STZ

Constellation Brands Inc · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Constellation Brands delivered a strong start to fiscal year 2023 with double-digit net sales and operating income growth in the beer business and advanced capital allocation priorities by completing share repurchase goal.

Constellation Brands reported a strong first quarter for fiscal year 2023, with the beer business achieving double-digit net sales and operating income growth. The wine and spirits business also delivered net sales and depletion growth. The company generated $758 million of operating cash flow and $562 million of free cash flow.

  • Generated reported basis EPS of $2.06 and comparable basis EPS of $2.66, including Canopy equity losses of $0.24; excluding Canopy equity losses, achieved comparable basis EPS of $2.90.
  • Beer Business achieved double-digit net sales and operating income growth and strong depletion growth driven by continued solid performance from Modelo Especial and Corona Extra.
  • Wine and Spirits Business delivered net sales and depletion growth driven by strong performance of higher-end brands including Meiomi, Kim Crawford, SIMI, The Prisoner Wine Company, High West Whiskey, and Casa Noble Tequila.
  • Generated $758 million of operating cash flow, an increase of 6%, and $562 million of free cash flow.

Headline financials

Total Revenue

$2.36B

Previous: $2.03B+16.6%
EPS (adj)

$2.66

Previous: $2.33+14.2%
Wine and Spirits Shipments

6.8M

Previous: 6.7M+1.5%
Beer Shipments

99.5M

Previous: 84.8M+17.3%
Capital Expenditures

-$197M

Previous: -$114M-72.6%
Free Cash Flow

$193M

Previous: -$1.02B+118.9%
Net Income

$390M

Previous: -$908M+142.9%
Operating Income

$816M

Previous: $75.1M+987.1%
Gross Profit

$1.26B

Previous: $1.12B+12.1%
Cash & Equivalents

$102M

Previous: $504M-79.8%
Total Assets

$25.8B

Previous: $26.2B-1.3%

Revenue & EPS history

Constellation Brands · Revenue · Quarterly

$2.36B

Q1 2023+16.6%vs Q1 2022
Beat estimate in 15 of 16 quarters(94%)
ActualEstimate

Revenue by segment

Constellation Brands · $2.36B total across 2 segments · Q1 2023

  • Beer
    $1.9B+20.8%
  • Wine and Spirits
    $465M+2.3%

Forward guidance

Constellation Brands provided guidance for fiscal year 2023, including expectations for net sales and operating income growth in the beer business, net sales decline and operating income growth in the wine and spirits business, and targets for operating cash flow and free cash flow.

Tailwinds

  • Beer: net sales growth 7 - 9%
  • Beer: operating income growth 2 - 4%
  • Wine and Spirits: operating income growth 4 - 6%
  • Operating cash flow: $2.6 - $2.8 billion
  • Free cash flow: $1.3 - $1.4 billion

Headwinds

  • Wine and Spirits: net sales decline 1 - 3%
  • Interest expense: approximately $350 - $360 million
  • Tax rate: reported approximately 21.5%
  • Capital expenditures: $1.3 - $1.4 billion, including approximately $1.2 billion targeted for Mexico beer operations expansion, optimization, and/or construction activities
  • Weighted average diluted shares outstanding: approximately 186.5 million; includes shares repurchased through June 2022

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 2023

Historical avgQ1 2023

+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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