USA: Constellation Brands boosts full-year forecast after quarterly beer sales increase 14%
Constellation Brands stock rose on June 30 after the spirits maker boosted its full-year forecast.
Constellation said it lost $908.1 million, or $4.74 a share in its fiscal first quarter, compared with a 94-cent loss in the year-ago period. On an adjusted basis, which strips out nonrecurring items, earnings per share were $2.33. Revenue climbed 3.3% to $2.03 billion. Analysts were looking for EPS of $2.35 on revenue of $2.02 billion.
For the full year, Constellation now expects to earn an adjusted $10 to $10.30 a share in fiscal 2022, up from a previous range of $9.95 to $10.25 a share and above the $10.06 consensus estimate.
Constellation stock rose 1.3% to $234 in recent trading.
Although profits were slightly below expectations, strong sales were a theme in the quarter. Beer sales, including its Corona and Modelo brands, were up 14% year over year to $1.57 billion, offsetting a 22% decline in sales of wine and spirits. Beer depletions, which track how quickly beer leaves the distributor for retailers, were a robust 10.7%, nearly mirroring pre-pandemic levels. Constellation expects beer sales to climb between 7% and 9% for the full year.
The company said it also plans an incremental $500 million in share repurchases in the current second quarter.
Constellation reported upbeat results in April as well, although that did little to help the stock. The shares are up 5.4% year to date and have risen 24.3% in the past 12 months.
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