Constellation Brands 1Q tops Street, lifts outlook
VICTOR, N.Y. (AP) — Constellation Brands Inc. said Wednesday that its fiscal first-quarter net income soared, helped by a strong sales performance at its Crown Imports beer business that includes Corona.
The wine, liquor and beer company’s performance beat Wall Street’s view, and it raised its fiscal 2015 adjusted earnings forecast.
Its shares rose more than 3 percent in midday trading.
Constellation closed on its acquisition of the Grupo Modelo U.S. beer business in June 2013. It purchased the business from Anheuser-Busch InBev. The deal includes full ownership of Crown Imports which includes Modelo Especial, Corona Extra and Modelo Especial Chelada.
Constellation said that the purchase price was about $5.3 billion, which includes $558 million that was paid as a post-closing purchase price adjustment last month.
Constellation — whose other brands include Robert Mondavi and Negra Modelo — earned $206.7 million, or $1.03 per share, for the three months ended May 31. A year earlier it earned $52.9 million, or 27 cents per share.
Stripping out certain items, earnings were $1.07 per share.
Analysts, on average, expected earnings of 93 cents per share, according to a FactSet survey.
Revenue for the Victor, New York-based company jumped to $1.69 billion from $766.2 million, before deducting excise taxes. Constellation said that the increase was driven by $868 million of sales related to the consolidation of Crown Imports’ commercial beer business. Wall Street predicted overall revenue of $1.63 billion.
Constellation now anticipates fiscal 2015 adjusted earnings between $4.10 and $4.25 per share. Its prior guidance was for $3.95 to $4.15 per share. Analysts expected $4.12 per share.
Constellation’s stock gained $2.82, or 3.2 percent, to $91.20 in midday trading Wednesday. Its shares had already risen more than 25 percent so far this year through Tuesday’s close.