Benzinga - Constellation Brands Inc (NYSE: NYSE:STZ) shares are trading lower Thursday after the company reported worse-than-expected earnings results for the third quarter.
What Happened: Constellation Brands reported fiscal third-quarter revenue of $2.44 billion, which beat average analyst estimates of $2.4 billion, according to Benzinga Pro. The company reported quarterly earnings of $2.83 per share, which missed average analyst estimates of $2.89 per share.
"The solid top-line performance of our Beer Business has given us confidence to again raise our outlook for the full-year increasing the low-end of our net sales and operating income growth ranges. And, the capacity added by productivity initiatives at our existing brewery operations gave us flexibility in our capex plans, yielding a higher free cash flow estimate for the year," said Garth Hankinson, CFO of Constellation Brands.
Constellation expects full-year earnings, excluding Canopy Growth Corp (NASDAQ: CGC), to be between $11 and $11.20 per share versus estimates of $10.94 per share.
Beer sales are expected to be up between 9% and 10% for fiscal-year 2023. Wine and spirits sales are expected to be flat to down 2%. Constellation now anticipates full-year free cash flow of $1.5 billion to $1.6 billion.
STZ Price Action: Constellation has a 52-week high of $261.53 and a 52-week low of $207.59.
The stock was down 3.75% at $222.50 at time of publication, according to Benzinga Pro.
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