Constellation Brands (STZ)




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Constellation Brands Reports First Quarter Fiscal 2020 Results (06.28.19)

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Como la mayoría de compañías, parón en el incremento de dividendos.

Se estarán curando en salud ante lo que esperan que venga si es que viene algo.

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Se han endeudado un monton para comprar Canopy apostando a la marihuana en bebidas. Veremos si han asignado bien el capital. Ahora toca desapalancarse a costa de frenar el crecimiento del dividendo.

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Constellation Brands Reports Second Quarter Fiscal 2020 Results (3/10/2019)

  • Generates reported basis EPS of $(2.77) and comparable basis EPS of $2.72, including Canopy Growth equity losses of $0.20. Excluding Canopy Growth equity losses, achieved comparable basis EPS of $2.91
  • Generates $1.4 billion of operating cash flow and $1.1 billion of free cash flow, an increase of 6% and 10%, respectively
  • Repurchases approximately 266,000 shares of common stock for $50 million
  • Signs agreement with Heaven Hill Brands to divest Black Velvet Canadian Whisky for $266 million
  • Wine and Spirits Transaction now expected to close by yearend fiscal 2020
  • Updates fiscal 2020 reported basis EPS outlook to $0.55 - $0.75. Increases comparable basis EPS outlook to $9.00 - $9.20; for guidance purposes assumes close of the Wine and Spirits Transaction at the end of third quarter fiscal 2020 and close of the Black Velvet Transaction at the beginning of
    November 2019
  • Increases fiscal 2020 operating cash flow target to approximately $2.2 billion and free cash flow projection to $1.3 - $1.4 billion


The table below sets forth management’s current EPS expectations for fiscal 2020 compared to fiscal 2019 actual results, both on a reported basis, a comparable basis, and a comparable basis excluding Canopy equity losses and related activities.

  • Beer: net sales and operating income growth 7 - 9%
  • Wine and Spirits: net sales decline 15 - 20% and operating income decline of approximately 25%
  • Interest expense: $430 - $440 million
  • Tax rate: reported 95% to 97%, reflecting fiscal 2020 year to date Canopy fair value tax benefit, comparable excluding Canopy equity earnings impact approximately 17%
  • Weighted average diluted shares outstanding: approximately 195 million; assumes no additional share repurchases for fiscal 2020
  • Operating cash flow: $2.1 - $2.3 billion
  • Capital expenditures: $800 - $900 million, including approximately $600 million targeted for Mexico beer operations expansion activities
  • Free cash flow: $1.3 - $1.4 billion
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