Constellation Brands Inc
The company's sales, totaling $2.471 billion, marked a slight increase from $2.437 billion a year earlier but fell short of the anticipated $2.538 billion. This led to a downward revision of the full-year guidance, now expecting fiscal 2024 EPS to be between $9.15 and $9.35, a drop from the previous forecast of $9.60.
Q3 2024 Financial Highlights
- Revenue was $2.47 billion, a sight increase from the $2.44 million from the same period last year
- Net income was $509.1 million, compared to the $467.7 of Q3 2022
- Adjusted EBIT was $755.1 million, an increase compared to the $709.5 from Q3 2022
- Gross profit was $1.27 billion, also showing a modest growth in comparison to the $1.23 billion from the same period in 2022
Constellation's president and CEO, Bill Newlands, highlighted the robust performance of Modelo Especial, which saw double-digit volume growth and overtook Anheuser-Busch's
Challenges In The Wine Market And Future Outlook
The beer business reported a 4% sales increase, with shipment growth of 3.4% and a depletion volume rise of 8.2%. However, the wine and spirits segment experienced an 8% sales decline, with shipments dropping by 11.6% and depletions falling by 10%.
Facing near-term challenges in the wine market, the wine and spirits business anticipates a 7% to 9% drop in fiscal 2024 organic net sales and a 6% to 8% decrease in operating income, largely due to market slowdown and U.S. wholesale underperformance.
STZ Price Action
STZ's shares were trading 2.79% higher at $249.08 per share at the time of this writing around noon ET Friday.