Constellation Brands Investors Cheer Solid Q2 Results, Raised Guidance

Constellation Brands, Inc. STZ delivered strong results for the second quarter. The company also boosted its fiscal year 2017 forecast. The company also agreed to buy High West Distillery to expand its portfolio.

The company reported net income of $358.9 million, or $1.75 a share, up from $302.4 million, or $1.49 a share, in the year-ago quarter. On an adjusted basis, it would have earned $1.77 a share.

Constellation's net sales grew from $1.73 billion to $2.02 billion in the most recent second quarter.

President and CEO, Rob Sands said, "During the quarter, we gained share and improved margins across our business, while continuing to make smart investments designed to fuel growth today and in the future. I am proud of our accomplishments in the first half of the year, which are enabling an increase in our overall guidance for the year."

For the fiscal year 2017, the company boosted its reported EPS forecast to $6.25-$6.40 and adjusted EPS to $6.30-$6.45. The company affirmed its operating cash flow target of minimum of $1.5 billion.

Separately, the company disclosed its agreement to buy High West Distillery for about $160 million to enter into dynamic and high-end craft whiskey market. Constellation believes that the acquisition would be a good addition to its spirits portfolio. The company expects the transaction to close before the current month ends.

The stock advanced $6.15, or 3.71 percent, to $172.00 in pre-market trading.