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Constellation Brands Inc. (NYSE: STZ ) was down 1% on Tuesday. The stock has fallen 8% over the past 12 months. The company is scheduled to report its third quarter 2023 earnings results on Thursday, January 5th. Here’s what to expect:
results
Analysts expect Constellation Brands to generate revenue of $2.4 billion for the third quarter of 2023. This compares to $2.3 billion reported in the third quarter of 2022. For the second quarter of 2023, the company reported $2.6 billion in profit, reflects a year ago. – annual growth of 12%. The highest growth in the second quarter was driven by strong demand for the company’s products.
earnings
Analysts estimate EPS of $2.90 per share for Q3 2023. This represents a 7% decrease from the adjusted EPS of $3.12 reported in the same quarter last year. In Q2 2023, Constellation posted adjusted EPS of $3.17 which was up 33% YoY. On a reported basis, the company posted a net loss of $6.30 per share in Q2.
Segments and trends
During the second quarter, Constellation recorded a 15% growth in net sales for the Beer segment, driven by the strength of brands such as Modelo Especial, Modelo Chelada, Corona Extra and Pacifico. Sales in the Wine and Spirits segment increased 1%, including sales growth of 15% in the DTC channel and 10% in international markets.
The company continued to see strong demand for its beer and wine and premium spirits products during the second quarter and remains optimistic about its portfolio’s long-term growth prospects. Constellation’s efforts to transform its wine and spirits business to focus primarily on the higher end segment have paid off. The largest premium wine, fine wine and spirits brands such as Meiomi, Kim Crawford and Ruffino produced positive dilution growth in Q2.
Constellation posted growth of nearly 9% in its beer business in Q2, driven by strength in Modelo Especial and Corona Extra. Day sales volume declines were flat YoY in Q2 and the company expects to remain flat in Q3 as well.
During the third and fourth quarters of fiscal year 2023, Constellation expects to increase shipments from the second half of fiscal year 2022 as a result of rebuilding distributor and retailer inventory after supply shortages and severe weather caused shipping disruptions in the first half. from FY2022. Over the medium term, the company expects its beer business to generate net sales growth of 7-9%, helped by the momentum of its core brands, the addition of brewing capacity and the launch of new products.
Click here to read the full transcript of Constellation Brands Q2 2023 earnings conference call
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