VICTOR, NY - Constellation Brands Inc (NYSE:STZ), the producer and marketer of beer, wine, and spirits, announced a robust third-quarter financial performance for fiscal year 2024 today, underpinned by strong beer sales and an optimistic full-year earnings forecast.
The company's operating profit soared to $820 million, with a noteworthy increase in comparable earnings per share (EPS) to $3.19. This financial uptick was largely fueled by the beer segment, where Modelo Especial's success played a significant role. Beer segment revenues climbed by 4%, coupled with an 8.2% jump in depletion volume, a key indicator of consumer demand.
Despite encountering headwinds in the wine and spirits market, where organic net sales are expected to dip by 7-9%, Constellation Brands demonstrated resilience by revising its comparable EPS guidance for the full year upwards. The new forecast stands at $12 to $12.20, not accounting for the impact of Canopy EIE.
Further bolstering investor confidence, the company has upgraded its operating cash flow target to a range of $2.6 to $2.8 billion. Additionally, the reported EPS outlook has been adjusted to $9.15-$9.35.
Constellation Brands' management expressed confidence in the beer sector's robust performance, which is central to the company's positive outlook for FY2024. With a strategy focused on rewarding shareholders, the company is also keen on enhancing its brewing capabilities and pursuing strategic acquisitions, ensuring a continued trajectory of growth and market leadership.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.