NYSE$STZ

Constellation Brands Inc · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

Constellation Brands' Q1 2024 results showcased strong beer business growth and resilience in the wine and spirits segment.

Constellation Brands reported a mixed Q1 FY24, with strong double-digit net sales growth in the beer business offsetting declines in wine and spirits. The company's beer business was driven by the Modelo brand family, while the wine and spirits business outperformed the higher-end wine category. Overall, the company reaffirmed its fiscal year 2024 EPS and cash flow outlook.

  • Reported EPS was $0.74, and comparable EPS reached $2.91; excluding Canopy EIE, comparable EPS was $3.04.
  • Beer Business achieved double-digit net sales growth, spurred by the Modelo brand family's continued success.
  • Wine and Spirits Business performed strongly in Circana channels, particularly in the higher-end wine category.
  • Operating cash flow amounted to $665 million, a 12% decrease, while free cash flow was $388 million, a 31% decrease.

Headline financials

Total Revenue

$2.51B

Previous: $2.36B+6.4%
EPS (adj)

$2.91

Previous: $2.66+9.4%
Wine and Spirits Shipments

5.9M

Previous: 6.8M-13.2%
Beer Shipments

107.0M

Previous: 99.5M+7.5%
Capital Expenditures

-$277M

Previous: -$197M-40.9%
Free Cash Flow

-$141M

Previous: $193M-173.1%
Net Income

$136M

Previous: $390M-65.1%
Operating Income

$765M

Previous: $816M-6.3%
Gross Profit

$1.26B

Previous: $1.26B+0.2%
Cash & Equivalents

$193M

Previous: $102M+89.1%
Total Assets

$24.8B

Previous: $25.8B-4.2%

Revenue & EPS history

Constellation Brands · Revenue · Quarterly

$2.51B

Q1 2024+6.4%vs Q1 2023
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Revenue by segment

Constellation Brands · $2.51B total across 2 segments · Q1 2024

  • Beer
    $2.1B+10.6%
  • Wine and Spirits
    $416M-10.5%

Forward guidance

Constellation Brands provided guidance for fiscal year 2024, including net sales and operating income growth for the beer business, organic net sales and operating income growth for the wine and spirits business, and targets for corporate expense, interest expense, tax rate, weighted average diluted shares outstanding, operating cash flow, capital expenditures, and free cash flow.

Tailwinds

  • Beer: net sales growth of 7 - 9%
  • Beer: operating income growth of 5 - 7%
  • Wine and Spirits: organic net sales decline of 0.5% to growth of 0.5%
  • Wine and Spirits: operating income growth 2 - 4%, excluding $38.5 million of net sales and $19.5 million of gross profit less marketing that are no longer part of the Wine and Spirits Business results
  • Free cash flow: $1.2 - $1.3 billion

Headwinds

  • Corporate expense: $270 million
  • Interest expense: $500 million
  • Tax rate: reported approximately 20%; comparable excluding Canopy equity earnings impact approximately 19%
  • Weighted average diluted shares outstanding: approximately 184 million
  • Capital expenditures: $1.2 - $1.3 billion, including approximately $1 billion targeted for Mexico beer operations 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 2024

Historical avgQ1 2024

+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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