Constellation Brands narrowly misses profits and improves forecasts
Constellation brands (STZ) – Get a report posted slightly lower than expected profits in the first quarter, but raised its full-year profit guidance as improved beer sales offset the continued decline in its wines and spirits division.
Constellation Brands said comparable earnings for the three months ended May, the group’s first fiscal quarter, were set at $ 2.33 per share, up 3 cents from the same period last year, but at a dime of the Wall Street consensus forecast. The group’s revenue, Constellation said, rose 3.2% to $ 2.026 billion, a tally that once again narrowly missed analysts’ estimates of a tally of $ 2.03 billion.
Net beer sales were up 14% from a year ago, the Corona and Model maker said, while wine and spirits sales were down 22%.
Turning to its 2022 fiscal year, which ends in February, Constellation said it expects comparable earnings in the region of $ 10 to $ 10.30 per share, up 5 cents per share from its previous forecast. , with net beer sales up 7-9%. from 2021.
“We are emerging from the pandemic in a strong position as we begin our exercise,” said CEO Bill Newlands. “Our beer business delivered double-digit net sales and earnings growth and our wines and spirits business is poised to accelerate the growth and profitability of its portfolio of premium and industry-leading brands. ”
Constellation shares were marked at 0.1% in pre-market trading immediately after the results were released to indicate an opening bell price of $ 231.00 each.
Earlier this year, Anheuser-Bush InBev, through its Mexico-based Grupo Modelo division, filed a lawsuit against Constellation accusing it of applying the Corona name to products other than beer, a move it said violated the terms of their trademark agreement.
Constellation now uses the Corona label on its “Hard Seltzer” product, which contributed to a 7% exhaustion growth in the second quarter.