Shares of Constellation Brands Inc (NYSE: STZ) are up nearly 5.0% on Thursday after the alcoholic beverage company reported better-than-expected results for its fiscal fourth quarter.
Notable figures in Constellation Brands Q4 report
Net income printed at $395.4 million versus the year-ago figure of $382.9 million.
Per-share earnings stood at $1.91, an increase from last year’s $1.80.
Adjusted EPS came in at $2.37, as per the earnings press release.
Q4 Net sales were up 8.0% on a year-over-year basis to $2.10 billion.
FactSet consensus was for $2.09 of adjusted EPS on $2.02 billion in sales.
Fair value of its stake in Canopy Growth Corp went down by $110 million.
Future outlook and CEO’s remarks
For fiscal 2023, Constellation Brands forecasts adjusted per-share earnings to fall in the range of $11.20 to $11.45. In comparison, analysts had called for a higher $11.50 a share. The U.S. firm expects up to 9.0% growth in beer net sales this year.
Constellation Brands announced an accelerated share buyback programme worth $500 million. The Fortune 500 company will receive roughly 1.70 million shares on Friday – April 8th. In the earnings press release, CEO Bill Newlands said:
“Our business continues to gain momentum. Despite headwinds, we extended our leadership position in the high-end of the U.S. beer market, our high-end wine and spirits brands continue to outpace the industry.”
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