Shares of Constellation Brands (STZ) declined in pre-market trading after the company reported disappointing Fiscal Q3 results and slashed its FY25 outlook. The beer and wine producer now expects its FY25 earnings to be between $3.90 and $4.30 per share, a significant decline from earnings of $9.39 per share in the same period last year. This was below analysts’ estimates of earnings in the range of $4.05 to $4.25 per share. Comparable earnings in FY25 are projected to be between $13.40 and $13.80 per share, compared to Street estimates of $13.71 per share.
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STZ’s CEO Comments on the Lowered Outlook
Bill Newlands, President and CEO of Constellation Brands, commented on the lowered outlook, “That said, given near-term uncertainty on when consumers will revert to more normalized spending, we have prudently lowered our growth outlook for net sales and operating income in Fiscal 2025, and have also revised the lower end of our comparable EPS growth guidance.”
STZ’s Fiscal Q3 Results Miss Estimates
In the Fiscal third quarter, STZ’s adjusted earnings stayed flat year-over-year to $3.25 per share, below consensus estimates of $3.33 per share.
Furthermore, the company’s revenues remained flat year-over-year to $2.46 billion in the third quarter as it continues to experience lower sales of its wine and spirits. This fell short of Street estimates of $2.54 billion.
STZ Declares Quarterly Dividend
Additionally, the company’s Board of Directors declared a quarterly dividend of $1.01 per share of Class A Common Stock, payable on February 21 to stockholders of record as of the close of business on February 7, 2025.
Is STZ Stock a Good Buy?
Analysts remain cautiously optimistic about STZ stock, with a Moderate Buy consensus rating based on 11 Buys and four Holds. Over the past year, STZ has increased by more than 10%, and the average STZ price target of $289.47 implies an upside potential of 32% from current levels. These analyst ratings are likely to change following STZ’s results today.
