Categories AlphaGraphs, Consumer, Earnings

Constellation gains after strong quarter driven by the beer business

Shares of Constellation Brands (NYSE: STZ) were up 1.7% in afternoon hours on Thursday after the company reported strong quarterly results a day ago. The company beat revenue and earnings estimates for the third quarter of 2020 and raised its guidance for the full year.

Revenue inched up 1% to $2 billion while comparable EPS fell 10% to $2.14. Sales in the Beer division increased 8.3% year-over-year to $1.31 billion. On its quarterly conference call, Constellation stated that the Modelo Especial brand saw depletion growth of 15% along with double-digit growth in 46 out of 50 states.

During the quarter, the Corona brand family grew around 7% in IRI channels aided by strength in Corona Premier, Corona Refresca and Corona Extra. Corona Premier posted double-digit depletion growth in 35 states.

Constellation Brands reports Q3 2020 results

Constellation plans to launch Corona Hard Seltzer this spring and this move is expected to help solidify the company’s leadership position in the high end of the US beer segment. Corona Hard Seltzer will be introduced in four flavors, including tropical lime, mango, cherry and blackberry lime.

Net sales in the Wine and Spirits division dropped 9.7% to around $689 million. Constellation expects the revised agreement with Gallo to lead to accelerated growth and margin performance in the segment.

The company also believes it will address the concerns of the FTC by excluding the sparkling wine, brandy, dessert wines and concentrate categories from the transaction. Constellation is looking at opportunities to divest most of the brands in these categories in order to optimize its portfolio.

Also Read:  Infographic: Key financials of Biogen (BIIB) Q2 2020 earnings report

Constellation is seeing upward progression in revenue for its Power Brands and expects mid-single digit sales growth for this collection of brands in the fourth quarter.

For fiscal year 2020, Constellation expects reported EPS of $0.95-1.05 and comparable EPS, excluding Canopy, of $9.45-9.55. 

Listen to publicly listed companies’ earnings conference calls along with the edited closed caption text.

Most Popular

Infographic: Ferrari (RACE) earnings and shipments in Q2

Ferrari NV (NYSE: RACE) reported second-quarter financial results before the regular trading hours on Monday. RACE shares fell 2.3% immediately following the announcement. The stock has increased by 8% since

Tyson Foods Q3 earnings drop on lower sales, but beat estimates

Tyson Foods, Inc. (NYSE: TSN) reported better-than-expected earnings for the third quarter. Meanwhile, revenues missed the Street view. The packaged food company posted adjusted earnings of $1.40 per share for the

After blockbuster Q2, Amazon (AMZN) is headed for a busy second half

As the business world limps back to normalcy from the crisis set off by coronavirus, most e-commerce companies are going through a period of hectic activity, thanks to the spurt

One thought on “Constellation gains after strong quarter driven by the beer business

Comments are closed.

Top