Constellation Brands Q4 Profit Tops Expectations

reported better-than-expected earnings for the fourth quarter on Thursday. The Victor, New York-based company's net income for the quarter climbed 37% to $215 million, while EPS rose 34% to $1.06. Its adjusted EPS came in at $1.03. Its net sales gained 5% to $1.36 billion. However, analysts were expecting earnings of $0.94 per share on revenue of $1.36 billion. Its net sales for the beer segment rose 11%, while wine and spirits net sales on a constant currency basis gained 2%. Interest expense for the quarter slipped 9% to $80 million. Constellation Brands announced the initiation a quarterly dividend. The company will pay a quarterly cash dividend of $0.31 per share to holders of Class A Common Stock and $0.28 per share to holders of Class B Common Stock. The average estimate among 28 Estimize users was for earnings of $0.97 per share and revenue of $1.38 billion. "We have completed another year of impressive results propelled by our Mexican beer business, which continues its incredible momentum and remains strongly positioned to generate ongoing sustainable growth. We outperformed the U.S. beer industry for the fifth consecutive year while achieving growth for every brand in our Mexican beer portfolio. And, our Nava brewery expansion is progressing as planned from a budget and timing of completion perspective," said Rob Sands, president and chief executive officer, Constellation Brands. For fiscal 2016, the company projects adjusted earnings of $4.70 to $4.90 per share, versus analysts' estimates of $4.86 per share. For fiscal 2016, the company expects net sales growth of high-single digit and 10% to 12% rise in operating income for the beer business. It also projects net sales and operating income to rise in the low-to-mid-single digit range for the wine and spirits business. Constellation Brands shares fell 0.98% to $118.00 in pre-market trading.