Constellation Brands exceeds Wall Street’s second quarter profit and revenue estimates.
The U.S. company’s net profit for the second quarter was £394.92 million.
The largest U.S. beer importer reported a 4% year-on-year decline in sales.
Constellation Brands Inc (NYSE: STZ) released its second quarter earnings report on Thursday, exceeding Wall Street earnings estimates despite the ongoing coronavirus pandemic crisis that has so far infected more than 7.4 million people in the United States and caused over 210,000 deaths.
Constellation Brands saw a slight decline in pre-trade trading on Thursday. Including the price action, the company’s shares now trade hands at 145.55 pounds sterling.
The stock has rallied by more than 75% since March, when it hit its year-to-date low of £81.50 per share due to COVID-19, which forced U.S. bars and restaurants to temporarily close. Are you interested in investing in the stock market online? Here is a simple guide to help you get started.
Constellation Brands has a net income of £394.92 million.
However, the company admitted the uncertainty of COVID-19 as it refused to provide guidance for the future. In the previous quarter (Q1), Constellation Brands had reported annualized revenue growth of 6%.
Although the majority of bars in the U.S. have been closed to the public due to virus-related restrictions, the Victor-based company still has an EPS rating of 90 and a composite rating of 91. As Constellation stated in April, demand from stores helped it offset the decline in bars and restaurants.
Constellation Brands stated that its net profit for the second quarter of the fiscal year was £394.92 million, or £2.02 per share. In the same quarter last year, the company reported a loss of £405.02 million or £2.14 per share. In mid-September, the Fortune 500 company acquired the spirits producer Copper & Kings.
Constellation Brands reported a 4% annualized decline in revenues.
For the quarter ended August 31, the U.S. beer, wine and spirits producer and marketer reported adjusted earnings per share of £2.13, including equity losses from its investment in Canopy Growth Corp.
In terms of revenue, Constellation Brands recorded an annualized decline of 4% to £1.74 billion. This compares with a FactSet consensus of £1.69 billion in revenue and £1.94 per share in earnings per share for the second quarter.
Constellation Brands performed quite well on the stock market last year with an annual profit of approximately 15%. At the time of writing, the largest beer importing company in the United States has a market capitalisation of £27.98 billion and a price-to-earnings ratio of £719.94.
