Constellation Brands 2Q Tops Wall Street’s View
VICTOR, N.Y. (AP) — Constellation Brands' net income fell 23 percent in its fiscal second quarter, stung by higher expenses. But the wine and liquor company's earnings beat Wall Street's view, and it raised its full-year adjusted earnings forecast.
The stock gained almost 4 percent in morning trading on Friday, briefly touching a new all-time high.
President and CEO Rob Sands said in a statement that customers are responding favorably to new products including Svedka colada flavored vodka and Black Velvet toasted caramel whisky.
For the three months ended Aug. 31, Constellation Brands earned $124.6 million, or 67 cents per share, down from $162.7 million, or 76 cents per share, a year earlier.
Stripping out restructuring charges and other items, earnings were 71 cents per share.
Analysts polled by FactSet forecast earnings of 54 cents per share for the Victor, N.Y.-based company.
Selling, general and administrative expenses and interest expense climbed in the quarter.
Revenue, excluding excise taxes, rose 1 percent to $698.5 million from $690.2 million.
Wall Street expected $715.5 million in revenue.
Constellation Brands, whose brands include Robert Mondavi, Simi and Ruffino, now expects full-year adjusted earnings in a range of $2 to $2.10 per share. It previously called for adjusted earnings of between $1.93 and $2.03 per share.
Analysts predict earnings of $1.98 per share.
The company also announced that it still expects to complete its acquisition of the remaining 50 percent stake of the Crown Imports joint venture that it doesn't already own during 2013's first quarter.
Constellation Brands Inc.'s stock added $1.32, or 3.8 percent, to $36.04 in morning trading after trading as high as $36.50 earlier in the session. That is an all-time high, according to FactSet.