-=Constellation Brands (STZ) reported earnings on Fri 5 Jan 2018 (b/o)

Constellation Brands Correction: Co beats on EPS; misses on revs excluding excise taxes 

• Reports Q3 (Nov) comparable earnings of $2.00 per share, $0.11 better than the Capital IQ Consensus of $1.89; revenues (ex excise taxes) declined 0.6% year/year to $1.8 bln vs the $1.87 bln Capital IQ Consensus.
• Shipment growth was below depletion growth primarily due to timing. Year-to-date shipments grew at almost 8.5%. The beer business continues to target high-single digit volume growth and 9% - 11% net sales growth for fiscal 2018, with EBIT growth in the 18% - 19% range./ Operating margin increased 290 basis points to 37.7%, driven primarily by strong operating performance and favorable pricing.
• Co issues raised guidancefor FY18, sees EPS of $8.40-8.50 from $8.25-8.40 vs. $8.44 Capital IQ Consensus Estimate.
• Co affirms fiscal 2018 operating cash flow target of approximately $2.0 billion and free cash flow projection of $725 - $825 million. Board of Directors authorizes new $3 billion share repurchase program; $308 million remaining on existing authorization.
• For fiscal 2018, the beer business continues to target net sales growth in the range of 9 - 11 percent and operating income growth is now targeted in the range of 18 - 19 percent. For the wine and spirits business, the company continues to expect net sales to decrease in the range of 4 - 6 percent and operating income to be flat. These projections include the estimated impact of the December 2016 divestiture of the Canadian wine business and the estimated incremental benefits from the High West, Charles Smith and Prisoner acquisitions.