Home / Business and Economy / Constellation Brands Beats Estimates on Beer Demand
Constellation Brands Beats Estimates on Beer Demand
8 Jan
Summary
- Constellation Brands reported Q3 sales and profit exceeding expectations.
- Demand for Modelo Especial and Corona beer brands remained strong.
- Company shares saw a 3% increase in extended trading.
Constellation Brands announced third-quarter financial results that surpassed analyst predictions, bolstered by consistent consumer interest in its flagship beer brands, Modelo Especial and Corona. This positive performance occurred despite broader challenges within the U.S. alcohol market, indicating the strength of its brand portfolio. Shares experienced a notable increase of 3% in after-hours trading.
The company's net sales saw a 10% decrease to $2.22 billion, a figure that was better than the anticipated 12.4% decline. Adjusted quarterly profit came in at $3.06 per share, surpassing the estimated $2.63 per share. While overall beer sales declined by 1% due to lower shipment volumes, this represented an improvement from the previous quarter's 7% drop.
Constellation Brands provided a fiscal year earnings per share forecast of $9.72 to $10.02. The company reaffirmed its expectation for an organic net sales decline of 4% to 6% for the year ending February 28, projecting a 2% to 4% drop in beer sales and a more significant 17% to 20% fall in wine and spirits.
