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Constellation Brands: Its Strong Fiscal 2Q18 Results

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Fiscal 2Q18 results

Constellation Brands (STZ) stock rose 4.0% on October 5, 2017, in reaction to the company’s results for fiscal 2Q18, which ended August 31, 2017. Then the stock rose 0.40% on October 6, 2017. Constellation Brands exceeded analysts’ sales and earnings estimates for fiscal 2Q18 and raised its earnings guidance for fiscal 2018.

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Impressive YTD movement

Constellation Brands stock has risen an impressive 37.0% on a YTD (year-to-date) basis as of October 6, 2017. Anheuser-Busch InBev (BUD), Molson Coors Brewing (TAP), and Brown-Forman (BF.B) have returned 15.3%, -14.5%, and 21.4%, respectively, since the start of the year.

Constellation Brands stock has outperformed its alcoholic beverage peers as well as the S&P 500 Index on a YTD basis. The S&P 500 Index has risen 13.9% since the start of 2017. STZ has also delivered better returns than the Consumer Staples Select Sector SPDR ETF (XLP), which has risen 4.1% YTD.

Constellation Brands’ strong imported beer portfolio is driving its top-line growth. Its strategy of focusing on the high-end beer business and premium wine and spirit products is also boosting its profitability.

Series overview

In this series, we’ll look at Constellation Brands’ fiscal 2Q18 results and the key drivers behind its strong earnings growth. We’ll look at the company’s fiscal 2Q18 sales and segment performances. We’ll also discuss the impact of the fiscal 2Q18 results on the company’s valuation and look at analysts’ price targets for the stock.

In the next part of this series, we’ll focus on the company’s earnings.

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