BUZZ - Constellation Brands shares rise on strong quarterly performance
路透社2026/10/07 14:26Latest Updates October 7 - Constellation Brands (STZ.N) shares once rose by 3.96%, trading at $120.25. On Tuesday, the company reported second-quarter profit and sales figures that exceeded expectations, thanks to strong demand for beer products such as Modelo Especial and Victoria, which helped offset challenges facing the alcohol industry in a sluggish consumer environment. The company will pay $75 million upon closing to acquire the vodka-based ready-to-drink brand SpikedAde (RTD), and will make additional payments of up to $278 million over five years, depending on the brand’s performance and capital allocation priorities. “The acquisition of SpikedAde could be quite promising, even though the brand and category are still in their early stages,” said JPMorgan. BNP Paribas analyst Kevin Grundy noted that the acquisition gives new CEO Nick Fink an opportunity to demonstrate his ability to scale “growth areas.” During the earnings call, the company stated that if the positive trend in September continues, performance is expected to reach the upper end of the forecast range. As of the previous trading day’s close, the stock had fallen 16% year-to-date. (For the convenience of non-English speakers, Reuters provides automated translations of its reports into several languages. As automated translations may be inaccurate or lack required context, Reuters does not guarantee the accuracy of the automated translations, which are provided solely for reader convenience. Reuters accepts no responsibility for any damage or loss arising from the use of the automated translation function.)
Latest Updates
October 7 - ** Constellation Brands (STZ.N) shares rose as much as 3.96%, closing at $120.25
** On Tuesday, the company reported second-quarter profit and sales that exceeded expectations (link), thanks to strong demand for its beer products such as Modelo Especial and Victoria, which helped offset challenges faced by the alcohol industry amid weak consumer spending
** The company will pay $75 million upon completion of the transaction to acquire ready-to-drink alcohol brand SpikedAde (RTD), which uses vodka as its base spirit; in addition, it may pay up to $278 million more over five years, depending on the brand's performance and capital allocation priorities
** “The acquisition of SpikedAde could be quite promising, even though the brand and category are still in their early stages” — JPMorgan
** BNP Paribas analyst Kevin Grundy said the acquisition offers new CEO Nick Fink an opportunity to demonstrate scaled capabilities in ‘growth segments’
** During its earnings call, the company said that if positive trends in September continue, it expects results to reach the upper end of its guidance range
** As of the previous trading day's close, the stock was down 16% year-to-date
(To facilitate non-native English speakers, Reuters has automatically translated its reports into several other languages. As the automated translation may contain errors or lack required context, Reuters does not guarantee the accuracy of the automated translation and provides it solely for the convenience of readers. Reuters bears no responsibility for any harm or loss resulting from the use of the automated translation function.)
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Tesla (TSLA.US) drops over 10% in a week, but ARK keeps buying! Cathie Wood: This is the moment we've been waiting for
Despite the recent volatility in Tesla's stock price, ARK Invest founder Cathie Wood, known as the "Goddess of Wall Street," remains optimistic about the company.
U.S. stock futures fluctuate by $650 billions due to news related to Jensen Huang
Nikkei Average Index gains expand to 2.78%
Crypto prices
More
