NYSE$STZ

Constellation Brands Inc · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Constellation Brands' Q4 2023 financial results were released, revealing a mix of challenges and successes across its business segments.

Constellation Brands reported Q4 net sales of $1.998 billion, a 5% decrease compared to the previous year. Reported EPS was $1.21, while comparable EPS was $1.98, a 16% decrease. The Beer Business experienced a slight sales decline but maintained strong depletion growth, while the Wine and Spirits Business saw sales decline but improved operating margins.

  • Net sales decreased by 5% compared to the prior year.
  • Reported EPS was $1.21, while comparable EPS decreased by 16% to $1.98.
  • Beer Business posted depletion growth of over 6% driven by Modelo Especial and Corona Extra.
  • Wine and Spirits Business delivered depletion growth across Premium Wine, Fine Wine, and Craft Spirits brand portfolios.

Headline financials

Total Revenue

$2B

Previous: $2.1B-5.0%
EPS (adj)

$1.98

Previous: $2.37-16.5%
Wine and Spirits Shipments

6

Previous: 7.7-22.1%
Beer Shipments

78.7

Previous: 83.2-5.4%
Net Income

$223M

Previous: $406M-45.0%
Operating Income

$467M

Previous: $678M-31.1%

Revenue & EPS history

Constellation Brands · Revenue · Quarterly

$2B

Q4 2023-5%vs Q4 2022
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Revenue by segment

Constellation Brands · $2B total across 2 segments · Q4 2023

  • Beer
    $1.54B-1.9%
  • Wine and Spirits
    $462M-13.9%

Forward guidance

Constellation Brands provided its fiscal year 2024 outlook, including expectations for 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 operating cash flow and free cash flow.

Tailwinds

  • Beer: net sales growth 7 - 9%
  • Beer: operating income growth 5 - 7%
  • Wine and Spirits: organic net sales decline 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
  • Tax rate: reported and comparable excluding Canopy equity earnings impact approximately 19%

Headwinds

  • Corporate expense: $270 million
  • Interest expense: $500 million
  • 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
  • Free cash flow: $1.2 - $1.3 billion

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 Q4 2023

Historical avgQ4 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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