2 Falling stocks could mean worse performance going forward

The stock returned to its downtrend on Thursday, picking up the gains from the previous session. Concerns over economic conditions have rebounded and market participants fear the Federal Reserve will continue to push interest rates higher.loss of S&P 500 (^GSPC -1.17%), NASDAQ Composite (^IXIC)When Dow Jones Industrial Average (^ DJI -1.02%) All were between 1% and 1.5%.

Data Source: Yahoo! Finance.

Earnings season doesn’t begin in earnest until next week, but several companies have released results that can’t stand scrutiny from shareholders.Not all numbers are bad, but neither walgreens boots alliance (WBA -6.13%) When constellation brands (STZ -9.72%) I saw their stock plummet. It’s a hint of what earnings season can mean for companies that are even slightly disappointed in their performance.

Walgreens stock doesn’t look healthy

Walgreens Boots Alliance shares fell 6%. The drugstore chain giant has reported financial results for the first quarter for the period ending November 30.

Walgreens’ quarterly numbers were generally weak. Sales fell 1.5% year-over-year to $33.4 billion, but adjusted for the stronger US dollar, constant currency sales would have increased by 3.2%. But Walgreens posted huge losses, and even after accounting for one-time effects, adjusted earnings of $1.16 per share were down 31% from last year’s levels. Investors expected Walgreens’ results to include his $6.5 billion charge related to settling opioid lawsuits and related matters, but it still took a heavy toll on the income statement. .

Shareholders did not appear to be satisfied with Walgreens’ strengthened guidance. As a result, we still believe earnings per share for the fiscal year will be between $4.45 and $4.65. raised to

Walgreens has expanded its healthcare business to take a broader approach beyond its focus on pharmacy services. That could pay off in the long run, but it may take time for Walgreens to see a return on its financial statements.

The Fall of Constellation Brands

In the beer and spirits industry, shares of Constellation Brands fell 10% after announcing third quarter results for the fiscal period ended November 30. The times are here again.

Constellation sales were $2.44 billion, up 5% from last year’s level. However, lower earnings saw his net income drop 11% to $525 million. That slashed his adjusted earnings to $2.83 per share, which was worse than some people who followed the stock had expected.

Constellation’s various businesses performed unevenly. In the beer division, Modelo Especial and Modelo Chelada stand out in their product lines, with sales and volume growth. However, shipments of wines and spirits were lower than in the same period last year, and despite higher prices, overall sales and operating income were lower than in the same period last year.In addition, holding a constellation of marijuana growers canopy growth Added to the loss.

Concerns about consumer behavior appear to be weighing on after Constellation and Walgreens’ earnings releases. This could be a troubling sign if the same thing happens to major consumer giants reported in the coming weeks.