Constellation Brands Inc.'s stock (STZ) fell 0.9% in early Friday trading, following the release of its fiscal third-quarter sales report. The wine and spirits distributor reported weaker-than-expected sales for the quarter and adjusted its full-year guidance accordingly.
Q3 Results
For the quarter ending November 30th, the company posted a net income of $509.1 million, or $2.76 per share. This represents an increase from $467.7 million, or $2.52 per share, during the same period last year. Adjusted earnings per share came in at $3.19, surpassing the FactSet consensus of $3.01.
However, sales for the quarter were disappointing, totaling $2.471 billion compared to $2.437 billion in the prior year. This fell short of the FactSet consensus estimate of $2.538 billion.
Key Performance Highlights
Despite the overall mixed performance, CEO Bill Newlands highlighted notable achievements within the company's portfolio. Modelo Especial exhibited double-digit volume growth and maintained its position as the number one beer brand in the U.S. by dollar sales. Additionally, Corona Extra and Pacifico were among the top ten gainers in the U.S. beer category.
Newlands emphasized that these strong performances have reaffirmed the company's confidence in its fiscal 2024 enterprise outlook. He did acknowledge, however, that near-term headwinds in the wine market prompted an adjustment to their Wine and Spirits Business guidance.
Adjusted Full-Year Guidance
As a result of these market challenges, Constellation Brands now anticipates full-year earnings per share (EPS) of $9.15 to $9.35 for fiscal 2024. This is a downward revision from their previous guidance range of $9.60 to $9.60.
Stock Performance
Over the past 12 months, Constellation Brands' stock has gained 16%. In comparison, the S&P 500 has experienced a 23% increase during the same period.
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