Constellation Brands beats second-quarter earnings, revenue estimates by Investing.com

Investing.com — Constellation Brands (NYSE: NYSE: ) reported better-than-expected second-quarter results on Thursday as its beer business continued to outperform the broader beverage industry. The company’s shares rose 0.7% following the announcement.

The company posted adjusted earnings per share (EPS) of $4.32, beating analysts’ estimates of $4.08. Revenue for the quarter was $3.14 billion, beating the consensus estimate of $2.95 billion and representing a year-over-year increase.

Constellation’s beer business, which includes popular brands like Corona and Modelo, delivered solid single-digit net sales growth and maintained momentum in operating margin expansion with double-digit operating income growth. The segment’s dollar sales growth outpaced the overall beverage industry in the channels tracked.

“While the current macroeconomic environment has impacted demand for alcoholic beverages – and consumer packaged goods more broadly – ​​we continued to deliver a strong performance in Q2 of FY25,” said Bill Newlands, Chairman and CEO of Constellation Brands.

The company reaffirmed its recently updated fiscal 2025 comparable EPS outlook from $13.60 to $13.80, in line with analysts’ expectations of $13.69. Constellation also upgraded its fiscal 2025 reported EPS outlook to $4.05 – $4.25, reflecting a $2.25 billion goodwill impairment loss for its wines and spirits business.

Constellation Brands maintained its fiscal 2025 operating cash flow target of $2.8 billion to $3.0 billion and free cash flow projection of $1.4 billion to $1.5 billion.