Shares of Constellation Brands (NYSE:STZ) gained in pre-market trading after the producer of beer, wine, and spirits reported adjusted comparable earnings for the first quarter of $3.57 per share, compared to $3.04 in the same period last year. This was above consensus estimates of $3.46 per share.
Constellation Brands’ Sales Breakdown
The company behind brands like Corona posted net sales of $2.66 billion, an increase of 6% year-over-year. This fell short of analysts’ expectations of $2.67 billion.
When it comes to Constellation’s beer business, it achieved a solid 8% increase year-over-year with sales of $2.27 billion and shipment volumes increasing by 7.6% year-over-year to 115.1 million. This business saw its depletion volume rise by 6.4%. Depletion volume is the rate at which products are sold at the retail level.
The company’s beer business was the biggest contributor with a more than 80% share of its total Q1 revenues of $2.66 billion.
STZ’s Dividends and Buyback
The company has declared a quarterly dividend of $1.01 per share of Class A common stock, payable on August 23 to stockholders of record as of the close of business on August 14, 2024. STZ returned over $240 million to shareholders in stock buybacks through June 2024.
STZ’s FY25 Outlook
Looking forward, management now expects its FY25 net sales to grow in the range of 6% to 7%. STZ updated its FY25 earnings outlook to between $14.63 and $14.93 per share and affirmed its comparable earnings forecast in the range of $13.50 to $13.80 per share.
Should I Buy STZ Stock?
Analysts remain bullish about STZ stock, with a Strong Buy consensus rating based on 16 Buys and three Holds. Over the past year, STZ has increased by more than 6%, and the average STZ price target of $298 implies an upside potential of 15.1% from current levels. However, these analyst ratings are likely to change following STZ’s earnings today.
