Constellation Brands Shares Surge in 2023 After Earnings Beat and Dividend Hike
Discover how Constellation Brands, the company behind Corona beer and Robert Mondavi wines, outperformed expectations in 2023 with strong earnings, raised guidance, and an increased dividend.
Constellation Brands, renowned for Corona beer and Robert Mondavi wines, surpassed profit forecasts and boosted its dividend in 2023.
Shares of Constellation Brands (STZ) climbed following the announcement of better-than-expected fourth-quarter earnings and an optimistic full-year outlook. The company, a leading producer of alcoholic beverages including Corona beer and Robert Mondavi wines, also increased its quarterly dividend, signaling confidence in future growth.
For the fiscal 2023 fourth quarter, Constellation reported earnings per share (EPS) of $1.98, exceeding analyst predictions. Although sales approached $2 billion, they slightly missed estimates.
The beer segment experienced a 2% revenue decline due to rising logistics and operational costs, including workforce expansion to support brand momentum. Meanwhile, wine and spirits sales decreased by 14%, reflecting lower shipment volumes.
Despite these challenges, CFO Garth Hankinson highlighted that the beer division outperformed net sales and operating income guidance for the year, while the wine and spirits segment improved operating margins.
Raised Guidance and Dividend Boost
Looking ahead to fiscal 2024, Constellation projects EPS between $11.70 and $12, surpassing market expectations. Additionally, the company raised its quarterly dividend from $0.80 to $0.89 per share, rewarding shareholders.
While shares have gained 1% today, they remain down 3% year-to-date, reflecting broader market conditions.
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