Constellation Brands Shares Rally Following Q4 Results, FY17 Outlook

Shares of

hit a new 52-week high of $158.75 on Wednesday morning after the company reported ts

. Constellation Brands said that it earned $1.19 per share in the fourth quarter on revenue of $1.543 billion. Beer operating income rose 29 percent in the quarter due to organic volume growth, favorable pricing and lower cost of production sold. The company also saw a 14 percent increase in wine and spirits operating income due to the Meiomi acquisition, organic volume growth and lower cost of product sold. Looking forward to the full year fiscal 2017, Constellation Brands expects to earn $6.05 to $6.35 per share and record free cash flow of $250 million to $350 million. "It has proved to be another dynamic year of significant accomplishments and impressive financial results for Constellation," said Rob Sands, president and chief executive officer, Constellation Brands. "In fiscal 2016, our beer business delivered industry-leading market results as the #1 growth contributor in the U.S. beer category, achieving stellar growth across the portfolio. We also acquired Ballast Point, one of the most awarded, major craft brewers in the industry, and solidified our position in the high-end segment of the U.S. beer market. We successfully completed our first 5 million hectoliter capacity expansion at our Nava brewery, and we began investing in a new, state-of-the art brewery in Mexicali, Mexico, in order to support the ongoing momentum of our iconic Mexican beer brands. In our wine and spirits business, we further strengthened the financial profile by channeling resources and brand-building investments toward higher-growth, higher-margin brands. This strategy, combined with the Meiomi wine acquisition, helped to drive healthy margin expansion and earnings growth. Overall, we are excited to build on the success of fiscal 2016, as we are targeting impressive results for the coming year," said Sands.