Constellation Brands (NYSE:STZ) rose slightly after Constellation Brands reported its latest quarterly results. The company earned $1.98 per share, beating a Refinitiv forecast of $1.82 per share. Revenue came in line at $2 billion.
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 growth of 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 provide the long-term flexibility needed to support the expected future growth of its high-end Mexican beer 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.
The company also declared an 89-cent-per-share quarterly dividend, an 11.3% increase from prior dividend of $0.80.
The dividend is payable May 18; for shareholders of record May 4; ex-div May 3.
STZ shares gained 89 cents to $222.33.
