Constellation Brands Earnings: Here’s Why Investors Don’t Like These Results
Constellation Brands Inc. (NYSE:STZ) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 2.45%.
Constellation Brands Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share decreased 5% to $0.38 in the quarter versus EPS of $0.40 in the year-earlier quarter.
Revenue: Rose 6.02% to $673 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Constellation Brands Inc. reported adjusted EPS income of $0.38 per share. By that measure, the company missed the mean analyst estimate of $0.41. It missed the average revenue estimate of $674.24 million.
Quoting Management: “The recent closing of our transformational beer acquisition has been a rewarding way to kick off fiscal 2014. This deal positions Constellation within the top ranks of the U.S. beer industry and significantly increases the size and scope of our company,” said Rob Sands, president and chief executive officer, Constellation Brands. “From an operational perspective, we are off to a positive start for the year, as we achieved our first quarter goals and objectives. I am particularly pleased with our commercial results as we continued to gain market share in IRI channels across our beer, wine and spirits businesses during the quarter.”
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