Constellation Brands stock fell in premarket trading Wednesday even though the Corona and Modelo maker beat Wall Street's earnings expectations for its second quarter. Net sales came in at $2.63 billion, above analysts' expectations of $2.54 billion, and adjusted earnings per share of $3.74 topped estimates of $3.55. Beer sales grew 5% in the quarter to $2.47 billion, but the company said it shipped slightly more cases to distributors rebuilding depleted inventory, raising questions about whether consumer demand is actually picking up. Sales of Modelo Especial and Corona Extra declined, partially offset by growth in smaller brands such as Pacifico, Victoria, and Modelo Chelada, while Wine and Spirits sales rose 17% on a 15.4% increase in shipment volumes. Constellation Brands reaffirmed its full-year adjusted earnings per share forecast of $11.20 to $11.90, and also announced it acquired ready-to-drink cocktail brand SpikedAde for $75 million up front plus payments of up to $278 million over the next five years based on the brand's future performance.
Corona Corporation
Victoria PLCConstellation Brands Inc Class ABeat Q2 estimates on sales and EPS and reaffirmed full-year guidance, but beer demand durability questioned as shipments to rebuild distributor inventory may mask weak consumer demand.
