Constellation Brands shares fall on Q3 earnings miss

Investing.com -- Constellation Brands reported third quarter fiscal 2025 results that fell short of analyst expectations, leading to a 2.4% decline in its stock price premarket Friday. The company also lowered its full-year earnings guidance, citing subdued consumer spending.

Constellation Brands (NYSE:STZ ) reported adjusted earnings per share of $3.25, missing the analyst consensus of $3.33 by $0.08. Revenue for the quarter came in at $2.46 billion, below the expected $2.55 billion and up 3.8% YoY.

The company's Beer Business achieved its 59th consecutive quarter of depletion volume growth, continuing to outperform the total beverage industry in dollar sales growth. However, Constellation Brands noted "subdued spend and value seeking behaviors" among consumers that emerged in the second quarter.

"While we continue to face the subdued spend and value seeking behaviors that emerged among legal drinking age consumers in Q2, our Beer Business delivered a sequential increase in our depletions growth rate in Q3," said Bill Newlands, President and CEO.

Constellation Brands updated its fiscal 2025 outlook. The company now expects comparable EPS of $13.40 to $13.80, compared to the analyst consensus of $13.71. The previous guidance range was $13.60-$13.80.

Constellation Brands raised its fiscal 2025 operating cash flow target to $2.9 - $3.1 billion and free cash flow projection to $1.6 - $1.8 billion.

The company also declared a quarterly cash dividend of $1.01 per share of Class A Common Stock.

Source: Investing.com