Constellation Brands said adjusted earnings for the three months ended in August, the group’s fiscal second quarter, were pegged at $2.38 per share, down 13.8% from the same period last year and well shy of the Street consensus forecast of $2.77 per share. Group revenues, Constellation said, fell 5% to $2.371 billion, a figure that topped analysts’ estimates of a $2.302 billion tally.
President and CEO William Newlands pointed to the company’s beer portfolio as a bright spot saying, “our core imported beer brands provides a point of competitive strength versus industry peers as we are the leading share gainer in the high end of the U.S. beer market. The majority of our growth continues to be driven by Modelo Especial supported by strong consumer demand for Corona Extra and Pacifico and we expect this to continue for the foreseeable future.”
The company has high expectations headed into next year. “We now expect to achieve 9% to 11% net sales growth and 4% to 6% operating income growth for fiscal 2022,” said Newlands.