Constellation Brands tops Street estimates for Q4

Constellation Brands Inc (NYSE: STZ) is trading up in premarket on Thursday after coming in ahead of Street estimates for its fiscal fourth quarter.

Constellation Brands stock gains on strong guidance

The stock is being rewarded also because $STZ issued strong guidance for the future. Adjusted earnings on a per-share basis, it said, are expected to fall between $13.50 and $13.80 in fiscal 2025.

Analysts, in comparison, were at $13.43 per share. Bill Newlands – the chief executive of Constellation Brands said in a press release today:

We remain confident and excited about growth trajectory of our Beer portfolio. We continue to see growth potential in our Wine and Spirits business as we focus on strong commercial and operational execution.

The beverage company expects its beer sales to improve another 7.0% to 9.0% this year. Constellation Brands stock is currently up well over 10% versus its year-to-date low.

Watch here: https://www.youtube.com/embed/bpXzMKE-3rA?feature=oembed

Constellation Brands Q4 earnings snapshot

Earned $392 million versus the year-ago $223 million

Per-share earnings also jumped from $1.21 to $2.14

Adjusted EPS printed at $2.26 as per the earnings report

Sales climbed 7.0% year-over-year to $2.14 billion

Consensus was $2.11 a share on $2.09 billion in revenue

Beer sales gained 11% while wine sales sank 6.0% in Q4

Constellation Brands increased its quarterly dividend by 13% to $1.01 a share on Thursday. According to its CEO Newlands:

Our beer business achieved 56^th consecutive quarter of volume growth while maintaining best-in-class margins … driven by sustained growth of our industry-leading beer brands that continue to gain share.

While overall beer consumption declines across the U.S., greater attention to health means drinkers are fueling a boom in nonalcoholic craft beer sales. https://t.co/Y544NLxvu9

— Inc. (@Inc) April 10, 2024

The post Constellation Brands tops Street estimates for Q4 appeared first on Invezz