- Wednesday, October 16, 2024
Constellation Brands (ticker: STZ) has exceeded expectations for the second quarter, resulting in an upward revision of its fiscal-year earnings outlook. The company reported adjusted earnings of $3.70 per share on sales of $2.84 billion, surpassing the estimated earnings of $3.37 per share on revenue of $2.82 billion, according to FactSet analysts.
One of the key contributors to Constellation Brands' success is the continued strength of the Modelo brand. Beer sales have seen a significant increase of 12% compared to the previous year, primarily driven by the popularity of Modelo Especial. The brand has consistently outperformed the market and established itself as the leading beer in U.S. tracked channels, as stated by Chief Executive Bill Newlands.
As a result of its strong performance, Constellation Brands has raised its adjusted earnings outlook for fiscal 2024. The company now expects a profit range of $12 to $12.20 per share, up from the prior estimate of $11.70 to $12 per share. Analysts surveyed by FactSet had anticipated adjusted earnings of $11.72 per share.
Despite this positive news, shares of Constellation Brands experienced a slight dip of 1.7% in premarket trading. Nevertheless, the stock has achieved a 7.6% rise thus far in 2023.
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