Companies and Brands
Constellation Brands Sinks Despite Solid Q3 Results
Published:
Last Updated:
When Constellation Brands Inc. (NYSE: STZ) reported its fiscal third-quarter financial results before the markets opened on Friday, the company said that it had $2.00 in earnings per share (EPS) and $1.8 billion in revenue. That compares with consensus estimates from Thomson Reuters that called for $1.89 in EPS and revenue of $1.87 billion. The same period of last year reportedly had EPS of $1.96 and $1.81 billion in revenue.
During the quarter, the board of directors approved a new $3 billion share buyback program. This is a sizable buyback considering Constellation’s market cap is only $44 billion.
Beer sales rose 8.0% in the quarter compared to last year, while wine and spirit sales fell 10.3%. The Beer segment benefited from increased sales during the Labor Day and Thanksgiving holidays. The drop in wine and spirit sales reflected the divestiture of the company’s Canadian wine business in December 2016.
In terms of guidance, the company now expects EPS for the fiscal full year to be in the range of $8.40 to $8.50. The consensus estimates call for $8.43 in EPS and $7.64 billion in revenue for the year.
It’s worth pointing out that during this quarter Constellation Brands invested $190 million for a minority stake in a Canadian pot company. This is the first major foray of an alcohol brand moving into the weed industry. Specifically, Constellation Brands bought a 10% stake in Canopy Growth.
Shares of Constellation Brands pulled back about 1% to $218.45 early Friday, with a consensus analyst price target of $239.47 and a 52-week trading range of $146.40 to $229.50.
Travel Cards Are Getting Too Good To Ignore (sponsored)
Credit card companies are pulling out all the stops, with the issuers are offering insane travel rewards and perks.
We’re talking huge sign-up bonuses, points on every purchase, and benefits like lounge access, travel credits, and free hotel nights. For travelers, these rewards can add up to thousands of dollars in flights, upgrades, and luxury experiences every year.
It’s like getting paid to travel — and it’s available to qualified borrowers who know where to look.
We’ve rounded up some of the best travel credit cards on the market. Click here to see the list. Don’t miss these offers — they won’t be this good forever.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.