Constellation Brands (STZ) has a market cap of $30.2 billion. It rose 0.68% and closed at $154.09 per share on January 25, 2017. The stock’s weekly, monthly, and YTD (year-to-date) price movements were 2.4%, 3.6%, and 0.51%, respectively, on the same day. Constellation Brands is trading 1.9% above its 20-day moving average, 1.3% above its 50-day moving average, and 3.1% below its 200-day moving average.
Related ETF and peers
The iShares Russell 3000 ETF (IWV) invests 0.12% of its holdings in Constellation Brands. IWV’s YTD price movement was 2.7% on January 25.
The market caps of Constellation Brands’ competitors are as follows:
Bill Newlands has been appointed as Constellation Brands’ executive vice president and chief operating officer. He will report to the company’s president and CEO, Rob Sands. The company said, “In his new role, Newlands will oversee the Beer Division, Wine & Spirits Division and Growth Organization.”
Performance in fiscal 3Q17
Constellation Brands reported fiscal 3Q17 net sales of $1.8 billion—a rise of 10.4% compared to net sales of $1.6 billion in fiscal 3Q16. Organic net sales of its Beer and Wine & Spirits segments rose 16.0% and 4.5%, respectively, in fiscal 3Q17—compared to fiscal 3Q16. The company’s gross profit margin and operating margin rose by 450 basis points and 220 basis points, respectively, in fiscal 3Q17—compared to the same period last year.
Constellation Brands’ net income, the EPS (earnings per share) of its Class A common stock, and the EPS of its Class B convertible common stock rose to $405.9 million, $1.98, and $1.82, respectively, in fiscal 3Q17—compared to $270.5 million, $1.33, and $1.22, respectively, in fiscal 3Q16. The company’s cash and cash equivalents and inventories rose 137.4% and 14.7%, respectively, between fiscal 3Q17 and fiscal 4Q16.
The company declared a quarterly cash dividend of $0.40 per share on its Class A common stock and $0.36 per share on its Class B common stock. The dividend will be paid on February 23, 2017, to shareholders of record at the close of business on February 9, 2017.
Constellation Brands made the following projections for fiscal 2017:
- net sales growth of 16.0%–17.0% in its Beer segment including an incremental benefit from its Ballast Point acquisition
- net sales growth in the mid-single digits and operating income growth in the mid to high single digits in its Wine & Spirits segment
- EPS of $7.55–$7.65 on a reported basis and $6.55–$6.65 on a comparable basis
In the next part, we’ll look at Carter’s (CRI).