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Constellation Brands Stock Falls Despite Strong Q2 Earnings


Constellation Brands Inc.’s stock (STZ) fell 2% in premarket trade on Thursday, following the release of its fiscal second-quarter earnings report. Despite posting better-than-expected earnings, the company’s guidance for the future disappointed investors.

Impressive Financial Results

In the quarter ending on August 31, Constellation Brands recorded a net income of $690.0 million, or $3.74 per share. This is a significant improvement compared to the year-earlier quarter when the company suffered a loss of $1.15 billion, or $6.30 per share. Adjusted earnings per share (EPS) came to $3.70, surpassing the FactSet consensus of $3.37.

Robust Sales Growth

Constellation Brands also witnessed a rise in sales during the second quarter. Revenue increased to $2.837 billion from $2.655 billion year-over-year, exceeding the FactSet consensus of $2.824 billion. This growth can be attributed to the strong performance of Corona beer and Kim Crawford wines, both popular brands distributed by the company.

Disappointing Guidance for FY2024

Despite the positive financial results, Constellation Brands provided guidance for fiscal year 2024 that fell short of market expectations. The company expects EPS in the range of $9.60 to $9.80, well below the FactSet consensus of $11.72. This news has resulted in a decline in the company’s stock.


Despite delivering impressive earnings and robust sales growth, Constellation Brands’ weak guidance for fiscal year 2024 has negatively impacted investor confidence. As a result, its stock has fallen by 2% in premarket trade. The company will need to address these concerns and provide a clear strategy to regain market confidence moving forward.

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