Constellation Brands (STZ) Beats Revenue Expectations for Q1

Constellation Brands (NYSE:STZ) traces its roots back to 1945 when founder Marvin Sands established Canandaigua Industries to sell bulk wine to bottlers in New York. Over the years, the company grew by expanding into new territories and partly by acquisitions. Today, Constellation Brands is one of the biggest producers of alcoholic beverages, including beer, wine, and spirits. It is also the biggest importer of beer in the U.S. in terms of sales (see most expensive alcohols in the world).

The company recently reported mixed financial results for the first quarter. Constellation reported adjusted earnings of $2.33 per share for the three months ended May 31, just below the consensus forecast of $2.35 per share. Revenue for the quarter inched up to $2.19 billion, versus $2.13 billion in the year-ago quarter. Analysts, on average, were looking for revenue of $2.02 billion.

Constellation’s beer brands performed well in the quarter. Revenue from its beer segment jumped 14 percent on a year-over-year basis to $1.57 billion. However, revenue from the Wine and spirits segment fell 22 percent to $454.5 million.

Commenting on the quarter, CEO Bill Newlands said, “We’re emerging from the pandemic in a position of strength as we kick off our fiscal year. Our Beer Business delivered double-digit net sales and profit growth and our Wine & Spirits Business is poised to drive accelerated growth and profitability from its portfolio of high-end, industry-leading brands.”

Constellation also increased its earnings outlook for fiscal 2022. It expects adjusted earnings in the range of $10 per share $10.30 per share for the full year, slightly higher than its previous forecast between $9.95 per share to $10.25 per share.