Constellation Brands Inc. STZ posted better-than-expected fiscal first-quarter earnings on Friday, boosted by strength in its beer business where sales rose 11%. The company had net income of $135.9 million, or 74 cents a share, for the quarter to May 31, down from $389.5 million, or $2.09 a share, in the year-earlier period. Adjusted per-share earnings came to $2.91, ahead of the $2.83 FactSet consensus. Sales rose 7% to $2.525 billion from $2.343 billion a year ago, also ahead of the $2.474 billion FactSet consensus. Beer sales rose 11%, driven by a 7.5% increase in shipments, due to strong growth for Modelo Especial, which recently replaced Bud Light as the best-selling beer in the U.S. The company is now expecting fiscal 2024 EPS of $9.35 to $9.65 or $11.70 to $12.00, excluding its investment in Canadian cannabis company Canopy Growth Corp. CGCCA:WEED, which is suffering a liquidity crisis and recently added “going concern” language to a regulatory filing. The FactSet consensus is for EPS of $11.66. The stock has gained 6.5% in the year to date, while the S&P 500 SPX has gained 14.5%.
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