NYSE$STZ

Constellation Brands Inc · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Constellation Brands' Q2 2024 earnings reflected double-digit net sales and operating income growth in the beer business, with Modelo Especial solidifying its position as the leading beer in the U.S. The wine and spirits business showed strong relative performance, driven by higher-end wine brands.

Constellation Brands reported a strong second quarter in fiscal year 2024, driven by the Beer Business. The company achieved reported EPS of $3.74 and comparable EPS of $3.70. The Beer Business experienced double-digit growth in net sales and operating income, while the Wine and Spirits Business delivered strong relative performance.

  • Achieved reported EPS of $3.74 and comparable EPS of $3.70; excluding Canopy EIE, generated comparable EPS of $3.80.
  • Beer Business achieved strong net sales and operating income each posting double-digit increases and a high-single digit depletion growth primarily driven by continued momentum of the Modelo brand family.
  • Wine and Spirits Business delivers strong relative performance, driven by our largest higher-end Wine brands, including Meiomi and Kim Crawford outpacing their corresponding category segment, in Circana channels.
  • Generates $1.6 billion of operating cash flow, a decrease of 2%, and $1.0 billion of free cash flow, a decrease of 15% driven by brewery capacity investments.

Headline financials

Total Revenue

$2.84B

Previous: $2.66B+6.8%
EPS (adj)

$3.70

Previous: $3.17+16.7%
Wine and Spirits Shipments

6.1M

Previous: 7.4M-17.6%
Beer Shipments

123.0M

Previous: 113.2M+8.7%
Capital Expenditures

-$305M

Previous: -$238M-27.9%
Free Cash Flow

$385M

Previous: -$1.39B+127.7%
Net Income

$690M

Previous: -$1.15B+159.9%
Operating Income

$979M

Previous: $813M+20.4%
Gross Profit

$1.45B

Previous: $1.33B+9.4%
Cash & Equivalents

$83.3M

Previous: $165M-49.5%
Total Assets

$24.9B

Previous: $24.3B+2.7%

Revenue & EPS history

Constellation Brands · Revenue · Quarterly

$2.84B

Q2 2024+6.8%vs Q2 2023
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Revenue by segment

Constellation Brands · $2.84B total across 2 segments · Q2 2024

  • Beer
    $2.39B+11.8%
  • Wine and Spirits
    $444M-13.9%

Forward guidance

Constellation Brands provided the following guidance for fiscal year 2024: Beer net sales growth of 8-9%, operating income growth of 6-7%; Wine and Spirits organic net sales decline of 0.5% to growth of 0.5%, operating income growth of 2-4%; Corporate expense of $270 million; Interest expense of $460 million.

Tailwinds

  • Beer: net sales growth of 8 - 9%
  • Beer: operating income growth of 6 - 7%
  • Wine and Spirits: organic net sales decline of 0.5% to growth of 0.5%
  • Wine and Spirits: operating income growth of 2 - 4%
  • Operating cash flow: $2.4 - $2.6 billion

Headwinds

  • Corporate expense: $270 million
  • Interest expense: $460 million
  • Tax rate: reported approximately 20%
  • 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 Q2 2024

Historical avgQ2 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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