Constellation Brands Inc (NYSE: STZ)
Shares of Constellation Brands were up $9.62, or 4.56% to $220.38 in the normal hours of trading on Thursday after the company reported its fiscal second quarter results. The beer maker reported upbeat results and lifted its full-year profit guidance.
Shares of the New York-based company have gone down more than 3% since the beginning of the year so investors welcome this strong quarter.
STZ Earnings & Outlook
The producer and marketer of wines, spirits, and beer said it had net earnings of $1.15 billion, or $5.87 per share, from $501.6 million, or $2.49 per share, in the same period a year ago.
After stripping out special items, earnings were $2.87 per share for the quarter. Revenue came in at $2.30 billion, up 10% from $2.53 billion posted in the year-ago period.
Thompson Reuters, based on analyst estimates, was for adjusted earnings of $2.56 per share on revenues of $2.25 billion.
Beer sales climbed $1.53 billion, representing an increase 10.5% from the earlier-year period, and ahead of estimates of $1.52 billion. The company generated revenue of $772.0 million from its wine and spirits segment, above estimates of $728.9 million.
For the full year ending February 28, 2019, the company expects adjusted earnings of between $9.60 and $9.75 per share, compared with its previous projection of $9.40 to $9.70 per share.
Constellation Brands CEO Comments
“The double digit EPS growth we delivered in the second quarter is top-tier for consumer product companies. Constellation remains the high-end leader and the most significant growth contributor in the U.S. beer market, and we’re seeing strong growth trends for the super-premium plus segment of our wine portfolio. Our $4 billion investment in Canopy Growth provides us with a strong foothold in the emerging global cannabis market, which could be one of the most significant growth opportunities of the next decade,” commented Rob Sands, chief executive officer of Constellation Brands
Constellation Brands Company Profile
Constellation Brands, Inc., together with its subsidiaries, produces, imports, and markets beer, wine, and spirits in the United States, Canada, Mexico, New Zealand, and Italy. The company sells wine across various categories, including table wine, sparkling wine, and dessert wine.
The company offers wine under the 7 Moons, Black Box, Clos du Bois, Estancia, Mount Veeder, The Dreaming Tree, Franciscan Estate, Nobilo, The Prisoner, Kim Crawford, Ravage, The Velvet Devil, Kung Fu Girl, Mark West, Meiomi, Robert Mondavi, Ruffino, and Simi brands, as well as Schrader Cellars and Charles Smith brands; and spirits under the Casa Noble, High West, SVEDKA Vodka, Black Velvet Canadian Whisky, Casa Noble Tequila, and High West Whiskey brands.
It provides beer primarily under the Corona Extra, Corona Light, Modelo Especial, Modelo Negra, Modelo Chelada, Pacifico, and Victoria brands, as well as Funky Buddha, Obregon Brewery, and Ballast Point brands.
It provides its products to wholesale distributors, retailers, on-premise locations, and state alcohol beverage control agencies. The company was founded in 1945 and is headquartered in Victor, New York. – Yahoo Finance