Constellation Brands reports earnings beat, stock gains 3%
ROCHESTER, N.Y. – Constellation Brands, Inc. (NYSE: NYSE: STZ), a prominent beverage alcohol company, today announced its first quarter fiscal 2025 earnings, surpassing analyst expectations for adjusted earnings per share (EPS).
The company reported a first quarter EPS of $3.57, which was $0.11 higher than the analyst estimates of $3.46. However, revenue for the quarter was slightly below expectations at $2.66 billion, just shy of the consensus estimate of $2.67 billion.
The company’s performance led to a positive market response, with the stock price rising by 3.4% following the announcement.
Constellation Brands also provided guidance for the full fiscal year 2025, projecting an EPS range of $13.50 to $13.80. The midpoint of this guidance, $13.65, aligns with the analyst consensus.
President and CEO Bill Newlands commented on the results, stating, “Our ability to exceed EPS expectations this quarter reflects our ongoing commitment to delivering quality and value to our shareholders. We continue to focus on driving growth through our iconic brands and are pleased with the positive response from our consumers and investors alike.”
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EU governments hesitant on Chinese EV tariffs as trade spat escalates.
By Philip Blenkinsop and Nick Carey
BRUSSELS/LONDON (Reuters) -EU countries are wavering over whether to back additional tariffs on Chinese-built electric vehicles, highlighting Brussels’ challenge in building support for its largest trade case yet as Beijing threatens wide-ranging retaliation.
Germany, whose carmakers made a third of their sales last year in China, wants to stop the tariffs, according to a government source, while France has been among the firmest backers.
But many countries are still weighing the pros and cons of the escalating trade spat, according to an informal poll by Reuters of EU governments.
The issue will be put to members in an advisory vote in the coming weeks, the first official test of support in a landmark case for the Commission. The EU initiated the probe without an industry complaint, the first such trade case of this kind.
The bloc is set to confirm on Thursday provisional duties of up to 37.6% on Chinese brands such as BYD (SZ:002594), Geely and SAIC, as well as on China-made models of Tesla (NASDAQ: TSLA), BMW (ETR: BMWG) and other western automakers.
Carmakers are bracing for billions of dollars in new costs as a result, which analysts say could slow their European expansion.
EU members will also vote in October if the Commission proposes multi-year tariffs at the end of its investigation. These would be blocked if a “qualified majority” of at least 15 countries representing 65% of the EU population votes against them.
France, Italy, and Spain, with 40% of the EU population, have indicated they would back tariffs.
First Foundation plunges as ‘unexpected’ fundraise puts real estate loans in focus.
(Reuters) -First Foundation shares slumped 30% in premarket trading on Wednesday after the Texas-based lender with a huge portfolio of multifamily real estate loans disclosed a $228 million “unexpected” capital raise.
Banks’ exposure to commercial real estate (CRE) loans has rattled investors as higher-for-longer interest rates and low occupancy due to a shift in work patterns have fanned fears of defaults.
Worries about multifamily loans also crushed New York Community Bancorp (NYSE: NYCB)’s shares, which have lost nearly two-thirds of their value so far this year.
Loans secured by multifamily properties – apartment buildings with more than four units – accounted for nearly 52% of First Foundation (NYSE: FFWM)’s $10.1 billion portfolio as of March 31.
It was among lenders with the biggest CRE footprints last year, though it has pledged to reduce its multifamily concentration over time.
First Foundation wants to sell some of its multi-family loans but is being cautious to avoid losses from such sales, CEO Scott Kavanaugh said on a call on Wednesday.
Though the low yields from multifamily loans were hurting the bank’s earnings, “there has been no degradation in our credit whatsoever,” he said.
“We fundamentally did not believe the bank needed to raise additional capital. With limited details on the plans for the new capital and the roadmap going forward, we are forced to move to the sidelines for now,” Raymond James wrote in a note.
The brokerage downgraded the bank’s stock by a notch and said the deal was unexpected but conceded that “the worst-case scenario has now been taken off the table” because of the increased liquidity.