Constellation Brands Sees Wine & Spirits Business Now Expects Medium-Term ~1-3% Net Sales Growth And ~25-26% Operating Margins; Company Targeting Annual Low Double-Digit Diluted EPS Growth
Portfolio Pulse from Benzinga Newsdesk
Constellation Brands (NYSE:STZ) has updated its medium-term outlook, expecting 1-3% net sales growth and 25-26% operating margins for its Wine & Spirits business, and 7-9% net sales growth and 39-40% operating margins for its Beer business. The company is targeting annual low double-digit diluted EPS growth and expects cumulative $15-17B operating cash flow and $10-12B free cash flow from fiscal 2024 to fiscal 2028. The company also announced an additional $2B share repurchase authorization.
November 02, 2023 | 5:04 pm
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Constellation Brands' updated medium-term outlook and additional $2B share repurchase authorization could potentially boost investor confidence and positively impact the company's stock price in the short term.
The company's updated medium-term outlook indicates a positive growth trajectory for both its Beer and Wine & Spirits businesses. This, coupled with the announcement of an additional $2B share repurchase authorization, signals the company's confidence in its financial health and future prospects, which could potentially boost investor confidence and positively impact the company's stock price in the short term.
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IMPORTANCE 80
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