Consumers are looking to lift their spirits.
Shares of Constellation Brands were buzzing slightly in late afternoon hours following the beverage company’s better than expected fourth quarter earnings and lifted fiscal 2025 year outlook.
Bill Newlands, Constellation Brands’ CEO, said the company’s “beer business continued its strong growth momentum,” adding that it nabbed “its 56th consecutive quarter of volume growth.”
That growth was led in part by its “industry-leading beer brands,” such as Modelo Especial, he said said during the company’s earnings call on Thursday.
“We achieved a significant milestone this year, as Modelo Especial became the number one beer in U.S. dollar sales,” Newlands said.
According to the company’s earnings report, Modelo Especial grew depletions by nearly 14% during the fourth quarter. Meanwhile, its Pacifico beer brand reached 22% of depletion growth, which refers to the products sold to a consumer at the retail level.
The Victor, New York-based Constellation Brands glided past Wall Street’s expectations. It reported revenue of $2.3 billion during the fourth quarter, about $2.26 earnings per share. Analysts had forecasted it would generate revenue of $2.1 billion, roughly $2.10 earnings per share.
Meanwhile, sales for the company’s wine and spirits category fell flat, largely led in part by “challenging marketplace dynamics,” which continued to pressure sales volumes, Newlands said.
But even so, the company lifted its adjusted fiscal 2025 outlook. Constellation Brands expects full-year earnings to be between $13.50 to $13.80 earnings per share. It expects sales to grow between 6% and 7%.
The international company is a top producer of beer, wine, and spirits. It has operations in the U.S., Mexico, New Zealand, and Italy.
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