Constellation Brands (STZ) fell 4.4% to close at $150.79 per share during the third week of December 2016. The stock’s weekly, monthly, and year-to-date (or YTD) price movements were -4.4%, -2.5%, and 6.9%, respectively, as of December 23.
STZ is trading 1.0% below its 20-day moving average, 4.4% below its 50-day moving average, and 5.1% below its 200-day moving average.
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Latest news on Constellation Brands
Constellation Brands has sold its Canadian wine business, which includes Jackson-Triggs and Inniskillin, wineries, vineyards, offices, facilities, and Wine Rack retail stores, to Ontario Teachers’ Pension Plan for ~$1.0 billion Canadian.
Constellation Brands reported, “The company received cash proceeds, net of repayment of outstanding debt, of approximately C$765 million, subject to post-closing adjustments. The sale of the Canadian wine business aligns with the company’s focus on driving higher growth, higher-margin business activities, and its capital allocation strategy, which includes returning value to shareholders through cash dividends and share repurchases, and making select, value-creating acquisitions while operating at a targeted leverage ratio.”
Constellation Brands’ performance in fiscal 2Q17
Constellation Brands reported fiscal 2Q17 net sales of $2.0 billion, a rise of 17.6% over $1.7 billion in fiscal 2Q16. The company’s net income, EPS (earnings per share) of its Class A common stock, and EPS of its Class B convertible common stock rose to $358.9 million, $1.75, and $1.61, respectively, in fiscal 2Q17. That compares to $302.4 million, $1.49, and $1.38, respectively, in fiscal 2Q16.
The company reported non-GAAP (generally accepted accounting principles) EPS of $1.77 in fiscal 2Q17, a rise of 13.5% over fiscal 2Q16.
STZ’s cash and cash equivalents and inventories rose 113.4% and 0.19%, respectively, between fiscal 4Q16 and fiscal 2Q17.
Constellation Brands has made the following projections for fiscal 2017:
- net sales growth of the Beer segment of 16.0%–17.0%, including an incremental benefit from its Ballast Point acquisition
- net sales growth of its Wine & Spirits business in the mid-single-digit range and operating income growth in the mid- to high-single-digit range
- EPS of $6.25–$6.40 on a reported basis and $6.30–$6.45 on a comparable basis
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