Constellation Brands’ net income slides to £278 million in fiscal Q4

By: Wajeeh Khan
Wajeeh Khan
Wajeeh is an active follower of world affairs, technology, an avid reader, and loves to play table tennis in… read more.
on Apr 8, 2021
  • Constellation Brands’ net income slides to £278 million in fiscal Q4.
  • The U.S. company forecasts up to £7.45 of full-year adjusted EPS.
  • Constellation shares slid under 5% in premarket trading on Thursday.

Constellation Brands Inc. (NYSE: STZ) published its earnings report for the fiscal fourth quarter on Thursday that topped analysts’ estimates for earnings and revenue.

Constellation Brands shares slid just under 5% in premarket trading on Thursday. The stock is now trading at £162 per share versus £157.50 per share at the start of the year. Learn more about the different types of stock investments.

Constellation Brands’ Q4 financial results versus analysts’ estimates

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Constellation Brands said that its net income in the quarter that concluded on 28th February came in at £278.25 million that translates to £1.42 per share. In the same quarter last year, its net income stood at a higher £289.59 million or £1.48 per share. In the prior quarter (Q3), the NYSE-listed company had posted £950 million of net income.

On an adjusted basis, the owner of prominent brands like Corona beer earned £1.32 per share. Excluding losses attributed to its Canopy Growth Corp stake, Constellation Brands reported £1.40 of earnings per share. In comparison, FactSet consensus for per-share earnings was capped at a lower £1.15.

The Victor-based company generated £1.42 billion of revenue in Q4 that also beat expectations. In the comparable quarter of last year, Constellation Brands’ revenue had come in at a lower £1.38 billion.

In separate news from the United States, video game retailer GameStop expressed plans of appointing Ryan Cohen as the chairman of the board of directors.

Constellation Brands’ guidance for fiscal 2022

For fiscal 2022, Constellation Brands now forecasts its per-share earnings to fall in the range of £5.01 to £5.23. It expects up to £7.45 of full-year EPS on an adjusted basis. In comparison, analysts are calling for a higher £7.58 of adjusted earnings per share in fiscal 2022.

CEO Bill Newlands commented on the financial report on Thursday and said:

“Fiscal 2021 was dynamic and rewarding year as we produced excellent results while managing the challenges of the pandemic. I’d like to thank the Constellation team for driving success in the face of continued adversity. As we head into fiscal 2022, we’re operating from a position of strength.”

Constellation Brands performed fairly upbeat in the stock market last year with an annual gain of more than 15%. At the time of writing, the beer, wine, and spirits producer is valued at £31.20 billion and has a price to earnings ratio of 23.75.  

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