© Reuters. Constellation Brands positive on earnings beat
- Constellation Brands (NYSE:) reports organic net sales rose 8% to $2.07B in Q2.
- Beer segment sales increased 12.8% to $1.38B.
- Wine and spirits sales fell 11.7% to $705.6M.
- Adjusted gross margin rate expanded 290 bps to 50.9%.
- Adjusted operating margin rate advanced 340 bps to 34.1%.
- Shipment volume: Beer: 80.3M (+11.7%); Wine and spirits: 14.7M (-19.2%).
- FY2018 Guidance: Beer segment sales: +9% to +11%; Wine & Spirits segment sales: -4% to -6%; Beer operating income: +17% to +19%; Wine & Spirits operating income: flat; Interest expense: $330M to $340M; Tax rate: ~21%; Weighted average diluted shares outstanding: ~201M; Diluted EPS: $7.90 to $8.05; Adjusted diluted EPS: $8.25 to $8.40; Free cash flow: $725M to $825M; Operating cash flow: $1.9B to $2.1B; Capex: ~$1.175B to $1.275B.
- STZ +4.44% premarket.
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