Constellation Brands Sees FY25 Adj. EPS $3.05-$7.92 Vs $13.70 Estimate, Revised From $14.63 - $14.93 Prior
Portfolio Pulse from Benzinga Newsdesk
Constellation Brands has updated its FY25 adjusted EPS guidance to $3.05-$7.92, significantly lower than the previous estimate of $13.70. The company expects a decline in reported operating income due to a goodwill impairment loss in its Wine and Spirits segment, but anticipates growth in its Beer segment.
September 03, 2024 | 1:03 pm
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Constellation Brands has significantly lowered its FY25 adjusted EPS guidance, indicating potential challenges ahead. The company faces a goodwill impairment loss in its Wine and Spirits segment, but its Beer segment shows promising growth.
The significant reduction in EPS guidance from $13.70 to a range of $3.05-$7.92 suggests potential financial challenges, particularly due to a goodwill impairment loss in the Wine and Spirits segment. However, the Beer segment's growth could offset some negative impacts. Overall, the news is likely to negatively impact STZ's stock price in the short term.
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