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Most companies are about to close their books on the second quarter, but a few stragglers are left on the earnings calendar, including Nike (NKE) and Constellation Brands (STZ). Nike stock has been on an ugly downtrend since late 2021. Shares hit another 52-week low on Thursday as Nike tries to hold support near the 40 level.
Nike reports Tuesday after the close, along with Constellation Brands, known for its popular beer brands like Corona, Modelo and Pacifico. Its wine brands include Robert Mondavi and Kim Crawford.
But business has been challenging lately for Constellation amid the rise of GLP-1 weight-loss drugs from Eli Lilly (LLY) and Novo Nordisk (NVO). Health-conscious consumers have veered away from wine, beer and spirits in favor of healthier, nonalcoholic drinks. In early January, the company released its first-ever, nonalcoholic version of Modelo.
When Constellation reported fiscal fourth-quarter results in April, adjusted profit fell 28% year over year to $1.90 a share. Revenue declined 11% to $1.92 billion. The good news was that beer sales edged up to $1.73 billion, helped by higher shipments and pricing. But wine sales plummeted 58% to $194.2 million, partly because of the divestiture of some of its wine brands, including Meiomi, Woodbridge, Cook's and Robert Mondavi Private Selection to The Wine Group.
Earnings and sales have declined for four straight quarters. The FactSet consensus is for Constellation to report flat profit of $3.21 a share on a 5% year-over-year revenue decline to $2.39 billion.
Nike reports Tuesday after the close, along with Constellation Brands, known for its popular beer brands like Corona, Modelo and Pacifico. Its wine brands include Robert Mondavi and Kim Crawford.
But business has been challenging lately for Constellation amid the rise of GLP-1 weight-loss drugs from Eli Lilly (LLY) and Novo Nordisk (NVO). Health-conscious consumers have veered away from wine, beer and spirits in favor of healthier, nonalcoholic drinks. In early January, the company released its first-ever, nonalcoholic version of Modelo.
When Constellation reported fiscal fourth-quarter results in April, adjusted profit fell 28% year over year to $1.90 a share. Revenue declined 11% to $1.92 billion. The good news was that beer sales edged up to $1.73 billion, helped by higher shipments and pricing. But wine sales plummeted 58% to $194.2 million, partly because of the divestiture of some of its wine brands, including Meiomi, Woodbridge, Cook's and Robert Mondavi Private Selection to The Wine Group.
Earnings and sales have declined for four straight quarters. The FactSet consensus is for Constellation to report flat profit of $3.21 a share on a 5% year-over-year revenue decline to $2.39 billion.
