Constellation Brands (NYSE:STZ) shares are trending lower today after the alcoholic beverages provider announced third-quarter numbers.
Revenue rose 5.2% year-over-year to $2.44 billion, comfortably outpacing estimates by $60 million. EPS at $3.01 too came in ahead of expectations by $0.12. During this period, STZ witnessed robust performance in the Beer business as well as Wine and spirits business. Its Modelo Especial, Modelo Chelada as well as higher-end wine and craft spirits units continued to perform well.
Looking ahead to fiscal 2023, STZ expects Beer net sales to rise by 9% to 10%. Free cash flow generation is expected between $1.5 billion and $1.6 billion. EPS for the period is anticipated to land between $11 and $11.20.
Meanwhile, analysts remain buoyant about the stock with a Strong Buy consensus rating alongside an average price target of $277.50. This points to a 20.05% potential upside in the stock.
STZ shares have dropped nearly 9.3% over the past month alone and a weaker-than-expected bottom line estimate for 2023 is leading the stock further lower today.
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