Investing.com — Constellation Brands (NYSE: NYSE:STZ) reported better-than-expected second-quarter results on Thursday, as its beer business continued to outperform the broader beverage industry. The company’s stock edged up 0.7% following the announcement.
The company posted adjusted earnings per share (EPS) of $4.32, surpassing analyst estimates of $4.08. Revenue for the quarter came in at $3.14 billion, beating the consensus forecast of $2.95 billion and representing a YoY increase.
Constellation’s beer business, which includes popular brands like Corona and Modelo, delivered solid mid-single digit net sales growth and maintained momentum in operating margin expansion with double-digit operating income growth. The segment’s dollar sales growth outperformed the total beverage industry in tracked channels.
“While the current macroeconomic backdrop has weighed on demand for beverage alcohol – and for consumer packaged goods, more broadly – we continued to deliver strong performance in Q2 of Fiscal ’25,” said Bill Newlands, President and CEO of Constellation Brands.
The company reaffirmed its recently updated comparable EPS outlook for fiscal 2025 of $13.60 to $13.80, in line with analyst expectations of $13.69. Constellation also updated its fiscal 2025 reported EPS outlook to $4.05 – $4.25, reflecting a non-cash goodwill impairment loss of $2.25 billion for its Wine and Spirits business.
Constellation Brands maintained its fiscal 2025 operating cash flow target of $2.8 – $3.0 billion and free cash flow projection of $1.4 – $1.5 billion.
Comments (0)