USA: Constellation Brands issues profit warning on 'negative' wine and spirits trends
Constellation Brands Inc.’s stock rose on September 3 after it raised the low end of the range for its adjusted fiscal 2025 profit outlook, despite its announcement of a goodwill impairment loss in its wine and spirits business of between $1.5 billion and $2.5 billion, MSN reported.
The impairment reflects a reduced fiscal 2025 outlook from Constellation Brands “due to continued negative trends primarily in its U.S. wholesale market, driven by declines in both the overall wine market and its mainstream and premium wine brands,” the company said.
Constellation Brands increased the low end of its adjusted profit outlook to a range of between $13.60 a share and $13.80 a share from its earlier view of a range between $13.50 a share and $13.80 a share.
Wall Street analysts currently expect adjusted earnings of $13.71 a share, according to FactSet data.
Constellation Brands slashed its outlook for reported fiscal 2025 net income to a range of between $3.05 a share and $7.92 a share from its earlier forecast for a range of between $14.63 a share and $14.93 a share. The lower outlook includes the cost of the goodwill impairment.
Constellation Brands’ stock rose 2.6% on September 3.
Înapoi
(libra 2.2656 sec.)