Constellation (STZ), Acuity (AYI) post strong quarterly sales growth

Highlights

• Net sales of Constellation Brands, Inc. (NYSE:STZ) ticked up 5% in Q2, FY22.
• Net sales of Acuity Brands, Inc. (NYSE:AYI) surged 11.4% YoY in Q4, FY21.
• STZ expects its beer sales to grow between 9% and 11% in fiscal 2022.

Constellation Brands, Inc. (NYSE:STZ) and Acuity Brands, Inc. (NYSE:AYI) on Wednesday posted strong sales growth in their latest quarters. They reported their earnings before the opening bell.

The STZ stock traded at US$212.00, down 0.50 percent, while the AYI stock traded at US$179.70, up 1.91 percent at 8:26 am ET from their previous closing prices.

Here we explore the quarterly performance of the two stocks.

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Constellation Brands, Inc. (NYSE:STZ)

Constellation Brands is an alcohol beverage company based in New York. It produces beer, wine, and other spirits. Its primary markets are the US, New Zealand, Italy, and Canada.

The company's net sales were US$2.37 billion in Q2 FY22 compared to US$2.26 billion in the same quarter of the previous year. Its gross profit was US$1.22 billion against US$1.21 billion in Q2 FY21.

The operating income was US$739.2 million compared to US$838.7 million in Q2 FY21. On a GAAP basis, its net income was US$11.9 million, or EPS of US$0.01 in Q2 ended Aug 31 FY 22, compared to US$521.8 million, or US$2.62 per share in the second quarter of fiscal 2021.

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On an adjusted basis, its earnings were US$2.38 per share against US$2.76 per share in Q2, FY21.

The firm now expects its beer net sales growth to be between 9 percent and 11 percent in fiscal 2022. It also estimates its operating cash flow to be between US$2.4 billion and US$2.6 billion.

Constellation has a market cap of US$40.92 billion, a P/E ratio of 33.4, and a forward P/E one year of 21.18. Its EPS is US$6.38.

The stock’s 52-week highest and lowest stock prices were US$244.75 and US$160.63, respectively. The trading volume was 1,534,631 on October 5.

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Acuity Brands, Inc. (NYSE:AYI)

Acuity Brands is an Atlanta, Georgia-based industrial technology company that provides lighting and building management services.

Its net sales were US$992.7 million in Q4 FY21 compared to US$891.2 million in Q4 FY20. The gross profit was US$419.3 million compared to US$375.1 million in the year-ago quarter.

The company’s operating profit was US$132.8 million versus US$105.9 million in Q4 FY20. It reported a net income of US$98.1 million, or US$2.72 per diluted share, compared to US$73.7 million, or US$1.87 per diluted share, in the same quarter the previous year.

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For the full fiscal 2021, the company's revenue was US$3.46 billion, against US$3.32 billion in the previous fiscal year. The net income was US$306.3 million, or US$8.38 per diluted share, compared to US$248.3 million, or US$6.27 per diluted share, in the previous year.

Its market cap is US$6.29 billion, the P/E ratio is 23.36, and the forward P/E one year is 19.23. Its EPS is US$7.55. The 52-week highest and lowest stock prices were US$194.59 and US$87.90, respectively. Its share volume on October 5 was 414,986.

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Bottomline

The STZ stock did not see significant growth in the recent past. It fell 1.7 percent YTD. On the other hand, the AYI stock saw notable gains. It rose more than 46 percent YTD. Analysts expect a strong business recovery in the coming, with the economy regaining from covid slowdown. However, investors should evaluate the companies carefully before investing in the stock market.