11:13 AM EDT, 07/03/2024 (MT Newswires) -- Constellation Brands' ( STZ ) earnings and revenue rose year over year during the fiscal first quarter, as the beer and wine company maintained its full-year revenue outlook.

Adjusted earnings came in at $3.57 a share for the three months through May 31, up from $3.04 a year earlier. The consensus on Capital IQ was for normalized EPS of $3.45. Sales advanced 6% to $2.66 billion, just shy of the Street's view for $2.67 billion.

Beer revenue gained 8% annually to about $2.27 billion as shipments grew 7.6%. The segment's depletion rate, or the pace at which units are sold to end consumers, came in at 6.4%. The company said it saw continuous high demand across most of its portfolio, led by a 21% jump in the Pacifico brand.

Operating margin for the beer division expanded 260 basis points year over year.

Sales of wine and spirits dropped 7% to $389 million, as shipments declined 5.1% amid tough market conditions, mainly in the US wholesale channel, according to the company. The division's depletion rate was negative 12.7%, while the operating margin contracted 370 basis points to 15.3% due to lower volumes and higher cost of goods sold.

"Our beer business continued to achieve strong volume growth well above that of its category and total beverage alcohol," Chief Executive Bill Newlands said in a statement. "Our wine and spirits business is making good progress against the operational and commercial execution initiatives identified in (the fourth quarter of fiscal 2024) to support its trajectory toward this year's guidance."

For fiscal 2025, Constellation Brands ( STZ ) continues to anticipate comparable EPS of $13.50 to $13.80, while analysts surveyed by Capital IQ are expecting $13.65. The company reiterated its enterprise sales growth guidance of 6% to 7%, with beer revenue expected to rise between 7% and 9% and wine and spirits to be down 0.5% to up 0.5%.

Constellation Brands ( STZ ) now expects reported EPS in fiscal 2025 to come in the range of $14.63 to $14.93, up from its prior guidance of $13.40 to $13.70.

"All in, we continue to make progress and remain focused on our fiscal (2025) outlook," according to Newlands.

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