This week, the company updated investors on its fiscal fourth-quarter performance and offered up guidance for fiscal 2018 that was better than industry watchers' expectations. In the quarter, Constellation Brands' sales were $1.63 billion, up 5.8% from the same quarter a year ago. Rising margins resulted in earnings per share of $1.48, or $0.12 better than analysts' forecasts. As you can see in the following chart, the quarter's growth wasn't an anomaly. Constellation Brands has been one of the steadiest growing companies in consumer goods for years.
The company's fiscal full-year 2017 revenue was $7.3 billion, up 12% from fiscal 2016, and its operating income surged 36% to $2.4 billion as operating margin expanded 5.7% to 32.7%. Driving the performance were beer sales, which jumped 17% because of organic growth from top brands including Corona and craft brewer Ballast Point. Wine and spirits sales grew a healthy 6%, too, and in fiscal 2018, management thinks comparable earnings per share will grow more than 10% to at least $7.70 from $6.76 in fiscal 2017.
Consumer beverage trends change, but Constellation Brands' exposure across beer, wine, and spirits helps protect its revenue and profit from that fickleness. And the company's ability to produce solid top- and bottom-line growth over time is compelling, particularly when we consider that its improving financial flexibility has it returning more money to investors. This week, the company boosted its quarterly dividend payout by 30% to $0.52 per share, and last fiscal year, management repurchased 7.4 million of its shares.
Overall, a larger and wealthier population should boost demand for beer, wine, and spirits, and because this is one of the best-run companies in this industry, and it's shareholder-friendly, I think it's a perfect addition to portfolios. If I'm right, this could be a fine time to pick up shares, because historically, the stock has run up ahead of summertime seasonal demand for beer and wine. Over the past 10 years, shares have posted a positive second-quarter return nine times, and while the past is no guarantee of the future, I think this company has a good shot at delivering yet again this year.
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