Constellation Brands beats by $0.24, reports revs in-line; raises FY16 EPS above consensus
- Reports Q2 (Aug) earnings of $1.56 per share (driven by beer business and favorable quarterly tax rate, excluding non-recurring items), $0.24 better than the Capital IQ Consensus of $1.32; revenues rose 7.8% year/year to $1.73 bln vs the $1.73 bln consensus.
- For the quarter, the co generated consolidated organic net sales growth on a constant currency basis of nine percent.
- Beer net sales increased 14%, primarily due to volume growth. Beer depletions grew 10 percent, reflecting strong consumer demand for the beer portfolio.
- Wine and spirits net sales on an organic constant currency basis increased three percent. This primarily reflects volume growth within the spirits portfolio.
- Co issues upside guidance for FY16, raises adj. EPS to $5.00-5.20 from $4.80-5.00 vs. $4.98 Capital IQ Consensus, driven primarily by strong beer business results
- For fiscal 2016, the beer business continues to expect net sales growth of ~10% but now expects operating income growth in the 15 - 18% range.
- For the wine and spirits business, the co continues to expect net sales and operating income growth to be in the low-to-mid single- digit range before any benefit from the Meiomi acquisition.