Constellation Brands Q3 sales lag estimates and company lowers full-year EPS guidance

Constellation Brands Inc.’s stock
STZ,
+0.38%
fell 0.9% early Friday, after the wine and spirits distributor posted weaker-than-expected sales for its fiscal third quarter and lowered its full-year guidance. The company posted net income of $509.1 million. or $2.76 a share, for the quarter to Nov. 30, up from $467.7 million, or $2.52 a share, in the year-earlier period. Adjusted per-share earnings came to $3.19, ahead of the $3.01 FactSet consensus. Sales rose to $2.471 billion from $2.437 billion a year ago, below the $2.538 billion FactSet consensus. CEO Bill Newlands said Modelo Especial delivered double-digit volume growth and retained its position as number one beer brand in the U.S. by dollar sales, while Corona Extra and Pacifico were top 10 share gainers in the U.S. beer category. That performance “has reinforced our conviction in our Fiscal 2024 enterprise outlook, despite an adjustment to our Wine and Spirits Business guidance due to near-term headwinds in the wine market,” he said in a statement. The company is now expecting fiscal 2024 EPS of $9.15 to $9.35, down from prior guidance of $9.60 to $9.60. The stock has gained 16% in the last 12 months, while the S&P 500
SPX,
-0.34%
has gained 23%.