Constellation Brands Inc. (STZ – Free Report) delivered robust fourth-quarter fiscal 2018 results, wherein both the top and bottom line topped estimates and improved year over year. Notably, this marked the 14th consecutive quarter of earnings beat for the company. Further, it provided an upbeat outlook for fiscal 2019.
Consequently, shares of Constellation Brands rose nearly 3.1% in the pre-market trading session. Overall, this Zacks Rank #3 (Hold) stock jumped 10.6% in the past six months, outperforming industry’s 2.4% growth.
Q4 Highlights
The company’s adjusted earnings for fourth-quarter fiscal 2018 rose 28% year over year to $1.90 per share, surpassing the Zacks Consensus Estimate of $1.74. Reported earnings were $4.64 per share, up 105% year over year.
Constellation Brands Inc Price, Consensus and EPS Surprise
Net sales improved 8% to $1,765.9 million and topped the Zacks Consensus Estimate of $1,757 million. Moreover, organic sales grew 10%.
Sales at the company’s beer business improved 11.9%, driven by 10.2% rise in shipment volumes and depletions growth of 11%. The solid portfolio depletions mainly stemmed from the strength in Modelo and Corona brand families with the rise in depletions of 18% and 16%, respectively. During the quarter, the company gained from the launch of Corona Familiar new packages in regionally expanded markets, which positioned it among the top 10 high-end beer share gainers alongside Modelo Especial, Modelo Chelada Tamarindo Picante and Pacifico.
Wine and spirits’ sales advanced 4.3% due to a 4.3% fall in shipment volumes, offset by 2.1% higher depletions. Organic sales for the segment rose 7.6%, driven by mix benefits, particularly due to strong Meiomi volumes. Further, the company’s focus wine brands reported 7% depletion growth, backed by marketing investments. This resulted in depletion growth of 24%, 18%, 16% and 10%, at Meiomi, The Prisoner, Black Box and Ruffino brands, respectively.
