Constellation Brands Inc Down 1.88% To $231.54 After Earnings Beat

Constellation Brands Inc (STZ) said before open Thursday that it earned $3.17 per share in quarter two 2023. The company reported earnings on an adjusted basis, so it may not be directly comparable to analyst estimates or prior periods.

On the revenue line, the company reported $2.7 billion, beating estimates by $145 million.

In the same quarter a year ago, the company earned $2.38 per share on revenue of $2.4 billion.

The stock is down 1.88% to $231.54 after the report.

The firm's lower revenue growth to earnings signals that the firm has been able to reduce costs and improve its profit margin overall.

The average recommendation from Wall Street analysts was a Strong Buy which may get revised based on this new data.

InvestorsObserver gives the stock a Bullish Sentiment score at the moment based on recent trading.

Constellation Brands Inc has been a strong performer over the past few months, garnering a high Long-Term Technical Rank by InvestorsObserver of 93, putting Constellation Brands Inc in the top 25% of stocks. The firm set a 52-week high on April 21, 2022 at $261.52 and set a 52-week low on February 24, 2022 at $207.59.

Constellation Brands is the largest multi-category alcohol supplier in the U.S. The business is anchored by a portfolio of Mexican beer trademarks, including Corona and Modelo, for which it acquired exclusive and perpetual U.S. ownership from AB InBev. The latter had to divest these rights due to antitrust mandates as it consummated its 2013 acquisition of dominant Mexican brewer, Grupo Modelo. Constellation's wine/spirits business has recently transitioned, divesting several lower-margin assets, including myriad wine brands and its Ballast Point craft beer brand. The firm imports most products after manufacturing them abroad, going to market through independent wholesalers. It owns 36% of Canopy Growth, a leading provider of medicinal and recreational cannabis products.