Constellation Brands’ (STZ) investor day next month could have major implications for its stock price, CNBC’s Jim Cramer said Friday.
stock is just a few weeks away, CNBC's Jim Cramer said Friday. He suggested it could be more important than the alcoholic beverage company'sConstellation — which in addition to selling Modelo and Corona in the U.S. also has a spirits and wine business — is set to hold an investor day on Nov. 2. It comes a few months after the venerable activist hedge fund Elliott Management disclosed a stake in Constellation and struck an information sharing and cooperation agreement with the company.
"Elliott obviously… wants their stock higher," Cramer said on"Squawk on the Street." Constellation shares were sinking another 3% on Friday. Cramer thought the stock's 3% drop Thursday was unwarranted given the company's strong quarter and guidance boost. The ClubElliott has"the ability to suggest things including perhaps maybe getting rid of some of the disappointing spirits business," said Cramer.
Constellation on Thursday reported what Cramer said"was actually a pretty good number" for its fiscal 2024 second-quarter results, beating on both the top and bottom lines. However, there was a bifurcation between its two segments. The beer portfolio led by Modelo saw 11.8% year-over-year sales growth, while its wine-and-spirits division saw a 14% drop in revenue on an annual basis.
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