What’s going on with STZ?
Constellation Brands, Inc. (STZ) was trading 3.82% lower after the international beverage alcohol company reported a decline in earnings per share in the fiscal year and fourth quarter 2021 financials. The shares were down $8.98 to $225.96 per share on Thursday afternoon.
What does this mean for Constellation Brands?
STZ reported fiscal fourth-quarter earnings of $1.44 per share, which is a year-over-year drop of more than 30% from $2.02 per share. Excluding Canopy Growth, its cannabis business, the company announced $9.97 in earnings per share for fiscal year 2021, and forecasted earnings per share to be in the $9.95 to $10.25 range for fiscal year 2022.
The Corona beer supplier expects revenue to decline nearly 3% to approximately $1.84 billion during the quarter ended February 2021, which contrasts with better-than-expected earnings in the previous quarter.
For fiscal 2022, Constellation Brands forecasts net sales growth of 7-9% and operating income to rise 3-5%, although wine and spirits are expected to see a decline of 22-24% in net sales with income down 23-25% as result.
STZ has an Overall Score of 66. Find out what this means to you and get the rest of the rankings on STZ!
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 been in flux, and it is currently 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 37% of Canopy Growth, a leading provider of medicinal and recreationally legal cannabis products.
