Constellation Brands Profit Falls 27 Percent
VICTOR, N.Y. (AP) — Constellation Brands' net income dropped 27 percent in its fiscal first quarter, partly pressured by costs related to its acquisition of Grupo Modelo's beer business.
The wine, beer and liquor company also boosted its 2014 earnings forecast, citing a lower interest expense estimate.
But its adjusted results for the latest quarter missed analysts' expectations, and the stock fell in premarket trading Tuesday.
Constellation Brands earned $52.9 million, or 27 cents per share, for the three months ended May 31. A year earlier it earned $72 million, or 38 cents per share.
The company closed on its acquisition of Grupo Modelo's U.S. beer business last month. It purchased the business from Anheuser-Bush InBev for about $4.75 billion.
Stripping out acquisition-related costs and other items, earnings were 38 cents per share.
Analysts were looking for higher earnings of 40 cents per share, according to a FactSet poll.
Shares of Constellation Brands declined 90 cents, or 1.7 percent, to $52.25 before the market open.
Revenue rose 6 percent to $673.4 million from $634.8 million when removing excise taxes, narrowly beating Wall Street's estimate of $673 million.
Constellation Brands Inc. said that its U.S. wine and spirits business did well in the quarter, with strong showings from brands including Nobilo, Simi and Black Box.
The Victor, N.Y. company now expects 2014 adjusted earnings of $2.60 to $2.90 per share, up from a range of $2.55 to $2.85 per share. Analysts predict full-year earnings of $2.84 per share.