Wednesday, July 24, 2024
Home Stock Analysis Constellation Brands (STZ) is preparing to report its first quarter earnings. Here’s what to expect.

Constellation Brands (STZ) is preparing to report its first quarter earnings. Here’s what to expect.

by xyonent
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Constellation Brands Q4 2024 Earnings Infographic.jpg

As Constellation Brands (NYSE: STZ) prepares to report its first quarter earnings, attention is focused on the company’s impressive performance in the beer market. Recent data shows the company has weathered recent market headwinds, with steady volume growth and price increases more than offsetting rising costs and weakness in the Wine & Spirits division.

STZ has had a rollercoaster ride so far this year, with shares hitting an all-time high in March and up about 6% so far this year, but the stock has retreated slightly in recent weeks, making it more affordable. The company’s optimism about its beer business’s success comes as Stock prices are expected to recover soon. With strong potential to steadily grow market share and create shareholder value, Constellation Brands is unlikely to disappoint long-term investors.

First Quarter Report Deadline

The New York-based beverage company is scheduled to release its first-quarter report at 7:30 a.m. ET on Wednesday, July 3, amid expectations of revenue and profit growth. Market participants expect net income of $3.46 per share for the May quarter. Earnings per share for the first quarter of 2024 were $2.91. First-quarter revenue is estimated to have risen to $2.67 billion from $2.51 billion in the same period last year.

The alcoholic beverage market faced significant pressure last year due to economic uncertainty, inventory issues and the ongoing shift towards non-alcoholic drinks, however Constellation Brands remains the market leader, with its beer business delivering 9% sales growth and 7% shipment growth in FY24. Brands Modelo, Pacifico and Corona played a key role in increasing market share last year.

Exceeding revenue expectations

Comparable earnings for the fourth quarter of 2024 rose to $2.26 per share from $1.98 per share in the year-ago period, beating Wall Street expectations and marking the fifth consecutive quarter in which the company beat expectations. On an unadjusted basis, the company posted fourth-quarter profits of $392.4 million, or $2.14 per share, up from $223 million, or $1.21 per share, in the fourth quarter of 2023. Fourth-quarter net sales were $2.14 billion, up 7% year-over-year and slightly above expectations. Beer Sales revenue: Wine & Spirits Split.

From Constellation Brands’ fourth quarter 2024 earnings call:

“Building on the success of our iconic brands, we are seeing strong traction with focused innovation aligned with consumer-driven trends of premiumization, flavor and improved quality. Our Modelo Chelada brand maintained its number one position in the chelada category, growing sales by 30% to more than 20 million cases, supported by the launch of our new flavor, Sandia Picante, and new pack sizes. We look forward to building on this momentum with two new flavors in FY25, Fresa Picante and Negra con Chile.”

Constellation Brands shares fell ahead of the earnings report and continued to fall in early trading on Monday, after remaining above their 12-month average for the past two weeks.

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