Shares of Constellation Brands (STZ) fell 3% after the alcoholic beverage maker reported financial results that showed its sales of wines and spirits declined 14% year-over-year.
Overall, the company reported fiscal second-quarter numbers that beat Wall Street forecasts, driven by strong sales of its Modelo beer brand. In all, beer sales rose 12% from a year earlier.
However, Modelo’s sales were partially offset by a steep drop in sales of wines and spirits.
Constellation Brands announced earnings of $3.70 U.S. a share on revenue of $2.84 billion U.S. Wall Street had been expecting the company, which also makes Corona beer, to report earnings of $3.37 U.S. a share on revenue of $2.82 billion U.S.
Modelo has become the top-selling beer in the U.S., taking the lead from Anheuser-Busch InBev’s (BUD) Bud Light. Modelo pulled ahead after consumers began boycotting Bud Light in response to an advertising campaign that featured a transgender social media influencer.
Looking ahead, Constellation Brands raised its earnings outlook for its full fiscal 2024 year, saying it expects a profit of between $12 U.S. and $12.20 U.S. a share.
Analysts polled by FactSet had been expecting full-year earnings of $11.72 U.S. per share.
Constellation Brands’ stock has increased 6% this year and currently trades at $241.33 U.S. a share.
