These Analysts Revise Their Forecasts On Constellation Brands After Q1 Results

Constellation Brands Inc. STZ posted better-than-expected first-quarter FY25 adjusted earnings on Wednesday.

The company reported first-quarter sales growth of 6% year-on-year to $2.66 billion, missing the analyst consensus estimate of $2.67 billion. Comparable EPS of $3.57 beat the consensus estimate of $3.46, according to data from Benzinga Pro.

Net sales for the Beer segment increased 8% Y/Y to $2.272 billion, and Wine and Spirits declined 7% Y/Y to $389 million. Shipment volume for Beer climbed 7.6%, while Wine and Spirits declined 5.1%.

"This outstanding performance supported the second largest dollar share gain within the broader Beverage industry and reinforced our significant growth outperformance relative to the entire CPG sector," said CEO Bill Newlands.

Constellation Brands continues to see FY25 net sales growth of 6% – 7%. It reaffirmed comparable EPS guidance of $13.50 – $13.80 against an estimate of $13.67.

Constellation shares gained 0.3% to trade at $251.11 on Friday.

These analysts made changes to their price targets on Constellation after the company reported quarterly results.

• Roth MKM cut the price target on Constellation from $305 to $303. Roth MKM analyst Bill Kirk maintained a Buy rating.
• JP Morgan increased Constellation price target from $291 to $320. JP Morgan analyst Andrea Teixeira maintained an Overweight rating.
• Jefferies boosted the price target on Constellation from $310 to $311. Jefferies analyst Kaumil Gajrawala maintained a Buy rating.
• UBS increased the price target on Constellation from $315 to $320. UBS analyst Peter Grom maintained a Buy rating.

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