Jim Cramer: Constellation stock would be much higher if it listened to me on wine and spirits
Constellation Brands moved higher Monday, adding to gains made Friday after the Modelo and Corona maker delivered solid quarterly beer numbers.
The company, overall, reported a mixed fiscal 2024 third quarter Friday morning, delivering solid Beer segment performance with strong profitability. However, its lagging Wine & Spirits continued to disappoint, with management cutting their full-year financial outlook on the segment. Still, overall, Constellation raised its full-year earnings and cash flow outlook.
While beer “is not affected so far” by the weight-loss GLP-1 drugs, health-conscious consumers are more concerned with consuming wine and spirits, Jim Cramer said Monday. Jim has been calling for the company to divest its underperforming Wine & Spirits business and focus its efforts on its outperforming beer business.
Constellation CEO Bill Newlands told Jim on Friday for “Mad Money” that the new GLP-1 weight loss drugs are “having next to no impact on us.” At the same time, he acknowledged wine remains “challenged” but said the brands have “a lot of runway.” $NVIDIA(NVDA.US$ $Advanced Micro Devices(AMD.US$ $Direxion Daily Semiconductor Bull 3x Shares ETF(SOXL.US$
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