2023-04-06 07:50:50 ET
Constellation Brands ( NYSE: STZ ) reported a mixed Q4 and forecast continued growth in beer sales for fiscal 2024.
The Victor, New York-based beverage giant notched $1.98 in earnings per share on $2B in revenue. Analysts had anticipated $1.84 and $2.02B, respectively. The company reported “strong demand for our high-end brands” in the beer category as well as solid demand in the premium wine category. Constellation’s Beer Business reported depletion growthof over 6% as Modelo Especial and CoronaExtra performed well in the quarter.
“The company plans to invest in the next increment of capacity in Mexico that will providethe long-termflexibility needed to support the expected future growth of its high-end Mexicanbeer portfolio,” the earnings release stated. “Total capital expenditures for the Beer Business are expected to be $4B to $4.5B over fiscal 2024 to fiscal 2026.”
Management also provided an outlook reflecting the expectation of between $11.70 and $12.00 in comparable EPS. Additionally, net sales growth for the beer category is anticipated to range from 7% to 9% while net sales in wine and spirits are slated to range from a 0.5% decline to a 0.5% gain. Consensus estimates had pegged overall sales growth at a rate of 5.7% and EPS at $11.80.
Shares of Constellation Brands ( STZ ) edged modestly lower in premarket trading.
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Constellation Brands stock wavers on mixed earnings print, guidance