Constellation Brands (NYSE:STZ) on Thursday reported earnings and revenue that topped analysts’ expectations for its fiscal second quarter of 2024.
The Mexican beer powerhouse, owner of the Modelo Especial and Corona Extra brands, reported double-digit sales growth in its beer business as the division continues to dominate the overall beer and high-end categories. Meanwhile sales of wine and spirits lagged.
The company raised its fiscal 2024 earnings per share outlook to a range of $9.60 to $9.80, up from a prior range of $9.35 to $9.65.
In the three months ended August 31, the company reported earnings per share of $3.70 adjusted vs. $3.36 expected, on revenue of $2.84 billion vs. $2.82 billion expected
Constellation’s beer portfolio posted 12% sales growth, boosted by 8.7% growth in shipments. The Modelo brand family was a particular bright spot: Modelo Especial grew nearly 9%, while Modelo Chelada brands posted growth of more than 40%.
The company also noted Modelo Especial remains the best-selling brand in the U.S. beer category.
The company’s wine and spirits brands, however, underperformed year over year. The category posted a 14% decrease in sales and nearly 8% decrease in depletions — an industry term for the number of cases sold to retailers by a distributor.
STZ shares stumbled $5.76, or 2.3%, to $243.60.
