Summary by Futu AI
Constellation Brands reported strong Q1 FY2025 results with net sales increasing 6% to $2.66 billion, driven by robust performance in its Beer segment. Beer net sales grew 8% to $2.27 billion on 7.6% higher shipment volume and favorable pricing, while Wine and Spirits revenue declined 7% to $389 million due to lower shipment volumes.Operating income surged 23% to $941.6 million, benefiting from Beer segment improvements through volume growth, favorable pricing, and successful cost savings initiatives. The company recognized an $83.3 million net gain from converting its Canopy Growth investment into Exchangeable Shares. Net income attributable to CBI increased significantly to $877 million from $135.9 million last year.The company maintained its strong market position with Modelo Especial continuing as the #1 beer brand in the U.S. beer market by dollar sales. Management executed nearly $50 million in cost savings during Q1 through efficiency initiatives focused on logistics and procurement. The company expects its reported effective tax rate for FY2025 to be between 11% and 13%.
Today, after hitting the high near 24,000 in the early session and entering bearish positions, the index fell sharply by nearly over 600 points, immediately recouping yesterday's losses significantly.
Moreover, today it broke the new high again, reaching a maximum of 24,076, but by the end of the market, it fell back by about 70 points, producing a bearish candle. The current trend has not yet been broken, but from the previous low until now, it has risen close to 6,000 points. It is believed that those with positions can continue to hold until there is a clear trend reversal for profit-taking. Those without positions can wait for a pullback to get in. Actually, it is hoped for a quick pullback, as it allows for entry and also provides a healthy breath.
Currently, the outlook remains the same as before. It is believed that even if there is a pullback, it shouldn't be too deep. However, if Futures fail to stabilize and close below 22,350, there may still be room for decline. The chance of Futures falling below 21,400 in the short term should be low, so it is considered that if a significant pullback occurs, it presents a good opportunity to incrementally go long. Recently, there has been a consistent approach to not hold positions overnight, only focusing on immediate trades, as there is no high chasing and no casual short selling.
Comment(0)
Reason For Report