From Investing.com:

Constellation Brands’ Q3 sales fell short of analyst expectations, with revenue up 1.4% year on year to $2.47 billion. The company made a non-GAAP profit of $3.19 per share, surpassing its previous quarter’s profit of $2.83 per share. Constellation Brands saw better operating profit and a gross margin that narrowly outperformed expectations.

Analysts were disappointed as Constellation Brands didn’t meet revenue targets and missed full-year earnings guidance. The stock stayed flat at $243.99 per share following the report. The company has a market capitalization of $44.51 billion, with an organic sales growth of 2% year on year and an annualized revenue growth rate of 4.7% over the last three years.

Constellation Brands is a globally renowned producer and marketer of beer, wine, and spirits, with a presence in more than 100 countries. The company operates in a highly competitive industry, subject to varying degrees of government regulation and taxation. It benefits from its well-known brand, impacting customer decision-making and influence over purchasing decisions.

The beverage and alcohol industry is influenced by brand strength, marketing strategies, and changing consumer preferences. The industry includes large multinational corporations, niche brands, and startups competing for market share. This can be seen in the increasing popularity of craft alcoholic beverages and the declining demand for sugary sodas.

Constellation Brands’ performance has generally lagged behind its sector, with its organic sales growing by 4.8% year on year on average. In the latest quarter, its organic sales rose by 2% year on year, marking a significant deceleration from the previous year. The company’s annual revenue growth rate over the last three years was deemed mediocre. Wall Street expects sales to grow 7.9% over the next 12 months, which would be an acceleration from this quarter.



Read more: Constellation Brands (NYSE:STZ) Misses Q3 Sales Targets By Stock Story