Constellation Brands' Continued Beer Strength Offsets Its Wine And Spirits Weakness
Portfolio Pulse from Upwallstreet
Constellation Brands (NYSE:STZ) reported a strong fourth quarter, driven by its beer segment's growth, offsetting weakness in wine and spirits. Revenue reached $2.3 billion, with earnings per share at $2.26, both surpassing estimates. Modelo Especial became the top beer in U.S. dollar sales. Full-year net sales rose 5%, with net income up 12%. The company raised its full-year earnings and sales forecasts, expecting beer sales to grow by 10%. Anheuser Busch InBev SA (NYSE:BUD) saw a drop in North American beer sales but growth in non-alcoholic beer, reflecting a shift towards health-conscious consumer behavior.
April 15, 2024 | 1:52 pm
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POSITIVE IMPACT
Constellation Brands exceeded Q4 expectations with significant beer sales growth, leading to raised full-year earnings and sales forecasts.
The strong performance of Constellation Brands' beer segment, particularly Modelo Especial's success, and the raised guidance for future earnings and sales, indicate a positive short-term impact on STZ's stock price.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100
NEUTRAL IMPACT
Anheuser Busch InBev SA faced a drop in North American beer sales but saw growth in non-alcoholic beer, aligning with a health-conscious consumer trend.
While Anheuser Busch experienced a decline in traditional beer sales in North America, the growth in non-alcoholic beer sales due to shifting consumer preferences towards healthier options could neutralize the impact on BUD's stock in the short term.
CONFIDENCE 85
IMPORTANCE 75
RELEVANCE 80