STZ Earnings: Constellation Brands Reports Mixed First-Quarter Results

Constellation Brands shares (NYSE:STZ) gained in premarket trading yesterday after the beer, wine and spirits producer reported adjusted comparable first-quarter earnings of $3.57 per share, compared with $3.04 in the same period last year. That was above the consensus estimate of $3.46 per share.

Constellation Brands Sales Breakdown

The company behind brands such as Crown reported net sales of $2.66 billion, up 6% year over year. This was below analysts’ expectations of $2.67 billion.

As for Constellation’s beer business, it achieved solid growth of 8% year over year with sales of $2.27 billion and shipment volume up 7.6% year over year to $115.1 million. The business saw its run-off volume increase 6.4%. Run-off volume is the rate at which products are sold at the retail level.

The company’s largest revenue contributor was beer sales, which accounted for over 80% of its total revenue in the first quarter, amounting to $2.66 billion.

Dividends and share buyback STZ

The Company declared a quarterly dividend of $1.01 per Class A common share, payable on August 23 to shareholders of record as of the close of business on August 14, 2024. STZ has returned more than $240 million to shareholders through share repurchases through June 2024.

STZ Outlook for Fiscal Year 2025

Looking ahead, management expects net sales to increase by 6% to 7% in fiscal year 2025. STZ updated its fiscal year 2025 earnings guidance to $14.63 to $14.93 per share and reaffirmed its comparable earnings guidance of $13.50 to $13.80 per share.

Should I buy STZ shares?

Analysts remain bullish on STZ stock, with a Strong Buy consensus based on 16 Buys and three Holds. STZ is up over 6% over the past year, and STZ’s $298 average price target implies a potential upside of 15.1% from current levels. However, these analyst ratings are likely to change following STZ’s results today.