Constellation Brands Earnings: Profit Slides Again

S&P 500 (NYSE:SPY) component Constellation Brands Inc. (NYSE:STZ) reported its results for the first quarter. Constellation Brands is a wine company with operations in the United States, Canada, the United Kingdom, Australia and New Zealand.

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Constellation Brands Inc. Earnings Cheat Sheet

Results: Net income for Constellation Brands Inc. fell to $72 million (38 cents per share) vs. $74.5 million (35 cents per share) a year earlier. This is a decline of 3.4% from the year-earlier quarter.

Revenue: Remained constant at $634.8 million.

Actual vs. Wall St. Expectations: Constellation Brands Inc. fell short of the mean analyst estimate of 39 cents per share. Analysts were expecting revenue of $646.6 million.

Quoting Management: “First quarter results were generally in line with our expectations. From an operational perspective, we are experiencing excellent marketplace momentum for our wine and spirits business and Crown’s imported beer business,” said Rob Sands, president and chief executive officer, Constellation Brands. “Earlier today, we announced we are purchasing the remaining 50 percent interest in the Crown joint venture, the leading beer importer in the U.S. This represents a significant milestone for Constellation Brands as we will become the sole importer of the Grupo Modelo brands in the U.S. and solidifies our place in this market for the long term. In addition, we are purchasing Mark West – the nation’s best-selling pinot noir brand.”

Key Stats:

The company’s net income has now fallen for three straight quarters. In the fourth quarter of the last fiscal year, net income fell 63.2% from the year earlier, while the figure fell 24.8% in the third quarter of the last fiscal year.

The company fell short of estimates last quarter after beating the mark the quarter before with net income of 69 cents versus a mean estimate of net income of 38 cents per share.

Looking Forward: The outlook for the company’s results in the upcoming quarter is unfavorable. The average estimate for the second quarter is 57 cents per share, down from 62 cents ninety days ago. At $2 per share, the average estimate for the fiscal year has fallen from $2.23 ninety days ago.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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