Constellation Brands raised its fiscal year earnings forecast after reporting second-quarter earnings and revenue that beat Wall Street estimates, driven by strength in the Modelo brand. The stock is falling anyway.
Blame the company’s wine and spirits sales, which fell 14% in the second quarter to $444.1 million, sending shares down 2.4% on Thursday.
constellation…
Constellation Brands raised its fiscal year earnings forecast after reporting second-quarter earnings and revenue that beat Wall Street estimates, driven by strength in the Modelo brand. The stock is falling anyway.
Blame the company’s wine and spirits sales, which fell 14% in the second quarter to $444.1 million, sending shares down 2.4% on Thursday.
Constellation Brands (ticker: STZ) reported fiscal second-quarter adjusted earnings of $3.70 per share on sales of $2.84 billion. Analysts surveyed by FactSet had expected the parent company of Modelo and Corona beers to report earnings of $3.37 per share on revenue of $2.82 billion.
Beer sales rose 12% from the previous year, driven by strong Modelo.
“Modelo Especial continued to outperform the market as a top gainer and solidified its position as the No. 1 beer in tracked channels in the U.S.,” CEO Bill Newlands said in a press release.
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Constellation Brands raised its adjusted earnings forecast for fiscal 2024, saying it expects earnings between $12 and $12.20 per share, above previous estimates of $11.70 to $12 per share. Analysts surveyed by FactSet were expecting adjusted earnings of $11.72 per share.
Constellation stock fell 2.3% to $243.69 at 10:28 a.m.
Write to Angela Palumbo at [email protected]
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