LONDON, October 6, 2014 /PRNewswire/ --

Investor-Edge.com has issued free post-earnings analysis on Constellation Brands Inc. (NYSE: STZ). On Thursday, October 02, 2014, the company reported its financial results for Q2 FY15. Click on www.investor-edge.com/FreeReports [http://www.investor-edge.com/FreeReports ] to read our free earnings review on Constellation Brands. During Q2 FY15, Constellation Brands Inc.'s net sales grew 10% Y-o-Y on comparable and reported basis. Further, the company's diluted EPS increased 16% on a comparable basis, while falling 87% on a reported basis. Our free coverage report can be accessed at:

www.investor-edge.com/register [http://www.investor-edge.com/register ]

Earnings Overview

During Q2 FY15, Constellation Brands Inc.'s comparable net sales increased to $1,608 million and reported net sales increased to $1,604 million. The company said that the 10% Y-o-Y increase in consolidated net sales was driven by $73 million of incremental net sales which benefitted due to an additional week of beer business in the reported quarter due to the timing of the beer business acquisition. In addition to this, the company's organic sales also grew by 5% Y-o-Y. However, the company's Q2 FY15 net sales fell short of Bloomberg analysts forecast of $1,640 million. The company's second quarter net sales for its beer segment increased 9%, primarily due to volume growth driven by strong consumer demand. Further, Constellation Brands Inc.'s wine and spirits net sales also grew 3% on a constant currency basis, majorly reflecting higher shipment volume and lower promotion expense in the quarter. The free research on STZ can be downloaded as in PDF format at:

www.Investor-Edge.com/STZFreeReport [http://www.investor-edge.com/STZFreeReport ]

Constellation Brands Inc.'s comparable operating income during the reported quarter grew 17% Y-o-Y to $413 million, while on reported basis, operating income fell by 77% Y-o-Y to $379 million. On a comparable basis, Q2 FY15 operating margin improved 160 basis points Y-o-Y to 25.7% and earnings before interest and taxes (EBIT) increased 16% Y-o-Y to $413 million. Further, Constellation Brands Inc.'s Q2 FY15 net income grew 18% Y-o-Y on a comparable basis to $222 million, and declined 87% Y-o-Y to $196 million on a reported basis. The company's comparable EPS came in at $1.11 per diluted share and reported EPS stood at $0.98. Bloomberg analysts' forecasted an EPS of $1.15 per diluted share for the second quarter.

Rob Sands, President and CEO of Constellation Brands, stated that the company's results reflected another quarter of excellent performance from its beer business, which was driven by the outstanding efforts of the company's wholesalers, retailers and employees in executing the company's plans in the marketplace during the key summer selling season as Constellation Brands achieved eight percent depletion growth during the quarter. He was grateful for the dedication and diligence of the aforesaid group who acted swiftly and thoroughly during the company's previously announced recall efforts. He further claimed that though the company is expected to see some shift in beer sales from the second quarter into the third quarter as a result of the recall; the company remains on track to achieve its comparable basis EPS goal for fiscal 2015. Sign up and read the free analyst's notes on STZ at:

www.Investor-Edge.com/STZ-06102014 [http://www.investor-edge.com/STZ-06102014 ]

In its outlook for full year FY15 (ending February 28, 2014), the company expects diluted EPS to be in the range of $3.85-$4.00 on a reported basis, compared with diluted EPS of $9.83 in FY14; while on a comparable basis, the company estimates diluted EPS in the range of $4.10-$4.25, compared with $3.25 in the previous year. Constellation Brands Inc.'s full year FY15 guidance assumes interest expense in the range of approximately $345 million-$355 million and tax rate of approximately 30%. Further, the company assumes weighted average diluted shares outstanding of approximately 201 million, free cash flow of approximately $275 million - $350 million, and capital expenditures of approximately $725 million - $775 million, including $600 million - $650 million for the beer business.

Stock Performance

On the day of earnings release, October 02, 2014, shares in Constellation Brands Inc. declined 1.01%, ending the session at $84.40. However, the stock more than reversed its losses on the last close, Friday, October, 03 and finished at $86.91, gaining 2.97% over its previous day's close. The stock vacillated between $84.79 and $87.03 during the last session. A total of 2.15 million shares were traded, which was almost double its three months average volume of 1.06 million shares. Over the last one month and from the beginning of 2014, the company's shares have advanced 0.03% and 23.49%, respectively, although, the stock has edged lower by 0.29% over the previous three trading sessions. Shares in Constellation Brands Inc. are trading above their 50-day and 200-day moving averages of $86.25 and $82.50, respectively. Further, the stock traded at a PE ratio of 23.22 and has a Relative Strength Index (RSI) of 51.50. Visit Investor-Edge and access the latest research on STZ at:

www.Investor-Edge.com/STZEarningsCoverage [http://www.investor-edge.com/STZEarningsCoverage ]

Sneak Peek to Corporate Insider Trading

In the last one month Constellation Brands Inc. has not reported any share transactions by insiders to the U.S. Securities and Exchange Commission (SEC). Complimentary in-depth research on STZ is available at:

www.Investor-Edge.com/STZInsiderTrading [http://www.investor-edge.com/STZInsiderTrading ]

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