Constellation Brands Q1 Earnings Beat Estimates

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Shares of
Constellation Brands, Inc.
STZ
rose more than 2 percent in pre-market trading after the company reported upbeat results for its first quarter and announced its plans to buy the Meiomi wine brand for around $315 million. The Victor, New York-based company posted quarterly net income of $238.6 million, or $1.18 per share, compared to $206.7 million, or $1.03 per share, in the year-ago period. Excluding items, the company earned $1.26 per share. Its net sales climbed around 7 percent to $1.63 billion However, analysts were expecting earnings of $1.24 per share on revenue of $1.62 billion. The average estimate among 26 Estimize users was for earnings of $1.24 per share and revenue of $1.62 billion. Beer net sales rose 11 percent during the quarter, while wine and spirits net sales climbed 4 percent on a constant currency basis. Its operating income for the first quarter climbed 9 percent year-over-year to $427 million. Free cash flow slipped to $76 million for the quarter, versus $101 million for the year-ago period. The company's board declared a quarterly cash dividend of $0.31 per share of Class A Common Stock and $0.28 per share of Class B Common Stock. "Our excellent first quarter results reflect a great start to our new fiscal year. We delivered exceptional performance for our beer business, which is the primary driver of the upward revision to our EPS outlook for the year, and our brewery expansion continues to proceed as planned. Within our wine and spirits business, we experienced improving market trends for our U.S. wine business, posted better than expected results in Canada and delivered excellent dollar sales and depletion volume growth for our portfolio of spirits brands," said Rob Sands, president and chief executive officer, Constellation Brands. The company raised its FY16 adjusted earnings forecast to $4.80 to $5 per share, versus prior forecast of $4.70 to $4.90 per share. It now projects net beer sales growth of around 10 percent. Constellation Brands shares gained 2.22 percent to $118.60 in pre-market trading.
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Posted In: EarningsNewsGuidanceprofit
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