Constellation Brands (STZ) Q2 2024 earnings

Constellation Brands on Thursday reported earnings and revenue that beat analysts’ expectations Second quarter of 2024.

The Mexican beer company, owner of the Modelo Especial and Corona Extra brands, reported double-digit sales growth in its beer business as the division continues to dominate the overall beer and high-end categories. Meanwhile, wine and spirits sales declined.

The company raised its earnings per share forecast for fiscal 2024 to a range of $9.60 to $9.80, up from the previous range of $9.35 to $9.65.

Here’s what Constellation reported for the three months ended August 31, compared to what Wall Street was expecting, based on a survey of analysts conducted by LSEG, formerly known as Refinitiv:

• Earnings per share: $3.70 was revised from $3.36 expected
• he won: $2.84 billion versus $2.82 billion expected

Constellation’s beer portfolio posted 12% sales growth, supported by 8.7% shipment growth. The Modelo brand family was a particular bright spot: Modelo Especial grew nearly 9%, while the Modelo Chelada brands posted growth of more than 40%.

Modelo Especial remains the best-selling brand in the U.S. beer category, the company said.

However, the company’s wine and spirits brands underperformed year over year. This category reported a 14% decline in sales and a roughly 8% decline in exhausts — an industry term for the number of cases a distributor sells to retailers.

The division wasn’t without notable brands, though: Constellation’s Meiomi and Kim Crawford wine brands saw attrition growth of 7% and 6%, respectively, while its craft spirit, Mi Campo tequila, posted attrition growth of over About 60%.

“We continue to expect strong growth acceleration and margin improvement from our overall wine and spirits businesses in the second half,” said CEO Bill Newlands.

Last June, the company posted higher earnings and reiterated its forecast. In the previous quarter, beer sales rose 11% year over year driven by stable consumer demand and higher prices.