LONDON, UK / ACCESSWIRE / October 13, 2017 /Pro-Trader Daily has just published a free post-earnings coverage on Constellation Brands, Inc. (NYSE: STZ) ("Constellation"), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=STZ, following the Company's reporting of its financial results on October 05, 2017, for the second quarter of the fiscal year 2018. The Company's revenue increased 3.6% on a y-o-y basis. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:
At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on STZ. With the links below you can directly download the report of your stock of interest, free of charge, at:
For the three months ended August 31, 2017, Constellation's revenue increased 3.6% to $2.30 billion from $2.22 billion in Q2 FY17. During Q2 FY18, the Company's net revenue increased 3% to $2.08 billion from $2.02 billion in Q2 FY17. For the reported quarter, the Company's organic net revenue increased 8% to $2.07 billion from $1.92 billion in Q2 FY17. The net revenue figures surpassed analysts' expectations of $2.06 billion.
During Q2 FY18, Constellation's gross profit increased 10.4% to $1.07 billion from $969.0 million in Q2 FY17. For the reported quarter, the Company's gross margin increased 350 basis points to 51.4% of revenue from 47.9% of revenue in Q2 FY17. For the reported quarter, the Company's adjusted gross profit increased 9.1% to $1.06 billion from $971.0 million in Q2 FY17.
For the reported quarter, Constellation's operating income increased 16.8% to $713.9 million from $610.9 million in Q2 FY17. For the reported quarter, the Company's operating margin increased 410 basis points to 34.3% of revenue from 30.2% of revenue in Q2 FY17. For the reported quarter, the Company's adjusted operating income increased 14.4% to $709.8 million from $620.2 million in Q2 FY17.
During Q2 FY18, Constellation's effective tax rate was 20.4% compared to 31.7% in Q2 FY17. For the reported quarter, the Company's adjusted effective tax rate was 20.5% compared to 31.8% in Q2 FY17.
During Q2 FY18, Constellation's net income increased 39.1% to $499.5 million on a y-o-y basis from $358.9 million in Q2 FY17. For the reported quarter, the Company's adjusted net income increased 36.4% to $497.1 million on a y-o-y basis from $364.4 million in Q2 FY17. During Q2 FY18, Constellation's diluted earnings per share (EPS) increased 41.7% to $2.48 on a y-o-y basis from $1.75 in Q2 FY17. For the reported quarter, the Company's adjusted diluted EPS increased 39.5% to $2.47 on a y-o-y basis from $1.77 in Q2 FY17. The adjusted diluted EPS surpassed analysts' expectations of $2.16.
On October 04, 2017, the Company's Board of Directors declared a quarterly cash dividend of $0.52 per share of Class A Common Stock and $0.47 per share of Class B Common Stock, payable on November 21, 2017, to stockholders of record as of the close of business on November 07, 2017.
Beer - During Q2 FY18, Constellation's Beer segment's net revenue increased 13.1% to $1.38 billion from $1.22 billion in Q2 FY17. For the reported quarter, the segment's gross margin increased 390 basis points to 54.2% of revenue from 50.3% of revenue in Q2 FY17. During Q2 FY18, the segment's operating margin increased 420 basis points to 41.1% of revenue from 36.9% of revenue in Q2 FY17. The increase was due to lower COGS, favorable pricing, and foreign currency benefits.
Wine and Spirits - During Q2 FY18, Constellation's Wine and Spirits segment's net revenue decreased 11.6% to $705.6 million from $798.7 million in Q2 FY17. For the reported quarter, the segment's gross margin increased 10 basis points to 44.6% of revenue from 44.5% of revenue in Q2 FY17. During Q2 FY18, the segment's operating margin increased 40 basis points to 26.2% of revenue from 25.8% of revenue in Q2 FY17. The increase was due to the divestiture of the lower-margin Canadian wine business and to a favorable mix.
As on August 31, 2017, Constellation's cash and cash equivalents decreased 29.1% to $125.6 million from $177.4 million in Q4 FY17.
During Q2 FY18, the Company's accounts receivable increased 15.7% to $853.3 million from $737.0 million in Q4 FY17.
For the reported quarter, Constellation's inventories decreased 1.5% to $1.93 billion from $1.96 billion in Q4 FY17.
For the reported quarter, the Company's accounts payable increased 7.4% to $601.7 million from $559.8 million in Q4 FY17.
During H1 FY17, the Company's cash provided by operating activities increased 5.7% to $1.10 billion from $1.04 billion in H1 FY16. During H1 FY17, Constellation's free cash flow decreased 11.6% to $597.8 million from $676.3 million in H1 FY16.
For FY18, Constellation expects EPS to be in the range of $7.90 - $8.05 and adjusted diluted EPS to be in the band of $8.25 - $8.40. The Company estimates free cash flow to be in the range of $725.0 million - $825.0 million for the fiscal year 2018.
At the closing bell, on Thursday, October 12, 2017, Constellation Brands' stock fell slightly by 0.16%, ending the trading session at $207.40. A total volume of 1.29 million shares have exchanged hands, which was higher than the 3-month average volume of 1.23 million shares. The Company's stock price surged 4.58% in the last three months, 22.76% in the past six months, and 22.00% in the previous twelve months. Moreover, the stock soared 35.28% since the start of the year. The stock is trading at a PE ratio of 27.58 and has a dividend yield of 1.00%. The stock currently has a market cap of $38.87 billion.
Pro-Trader Daily (Pro-TD) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and Canadian stocks. PRO-TD has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles, and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.
PRO-TD has not been compensated; directly or indirectly; for producing or publishing this document.
PRESS RELEASE PROCEDURES:
The non-sponsored content contained herein has been prepared by a writer (the "Author") and is fact checked and reviewed by a third party research service company (the "Reviewer") represented by a credentialed financial analyst [for further information on analyst credentials, please email email@example.com. Rohit Tuli, a CFA® charterholder (the "Sponsor"), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable-effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by PRO-TD. PRO-TD is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.
PRO-TD, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. PRO-TD, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, PRO-TD, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.
NOT AN OFFERING
This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither PRO-TD nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://protraderdaily.com/disclaimer/.
For any questions, inquiries, or comments reach out to us directly. If you're a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:
Phone number: (917) 341.4653
Office Address: Mainzer Landstrasse 50 Frankfurt am Main, Germany 60325
CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.
© 2017 Accesswire. All Rights Reserved.