Proactive Investors - Constellation Brands (NYSE:STZ) reported a slight year-over-year sales increase to $2.47 billion in fiscal 3Q on strong beer sales.
That was a slight miss compared to the Street’s estimates of $2.54 billion but Constellation’s earnings per share of $3.24 handily exceeded expectations of $3.02.
The beverage firm revised its fiscal 2024 guidance, projecting an 8-9% net sales growth for the Beer segment and a 7-8% increase in operating income.
The revised guidance underscores the company's confidence in sustained growth and profitability, backed by strong brand performance and strategic investments.
The company’s beer volumes, like Corona Extra and Modelo Especial, saw an 8.2% growth, meeting market expectations, while beer margins exceeded projections. However, wine and spirits faced operational challenges.
Analysts anticipate cautious optimism from management, with a focus on potential accelerations in beer depletions and upcoming shelf space gains.
Shares of Constellation opened 2.5% higher on Friday at US$248.37.