Constellation Brands Raises Earnings View After 1Q Profit Jumps
By Dean Seal
Constellation Brands recorded a big jump in profit for the fiscal first quarter as beer sales jumped and margins expanded, prompting a lift in its full-year earnings guidance.
The maker of beer, wine and spirits posted a profit of $877 million, or $4.78 a share, for the quarter ended May 31, compared with $135.9 million, or 74 cents a share, in the same quarter a year ago.
Stripping out one-time items, adjusted earnings were $3.57 a share. Analysts polled by FactSet had been expecting $3.46 a share.
Revenue rose to $2.66 billion from $2.51 billion in the year-ago quarter, a hair below analyst forecasts for $2.67 billion, according to FactSet.
The Victor, N.Y.-based company said its beer business, comprising brands including Modelo, achieved high single-digit net sales growth and double-digit growth in its operating income as volumes improved and costs came down.
On the bottom line, Constellation expanded margins both with higher sales, the benefits of its cost savings initiatives and the timing of marketing investments.
The company is now eying earnings of $14.63 to $14.93 a share for the full fiscal year, up from a prior forecast for $13.40 to $13.70 a share.
Write to Dean Seal at dean.seal@wsj.com
(END) Dow Jones Newswires
July 03, 2024 08:10 ET (12:10 GMT)
Copyright (c) 2024 Dow Jones & Company, Inc.-
September Jobs Report Forecasts Show Moderate Hiring Gains
-
Port Strike a Headache for Shippers but a Potential Tailwind for Certain US Transport Stocks
-
13 Charts on Q3′s Roller-Coaster Rally for Stocks and Bonds
-
5 Stocks to Buy Instead of Overpriced US Equities
-
Q4 Stock Market Outlook: Where We See Opportunities for Investors
-
Markets Brief: Non-Farm Payrolls in the Spotlight Again
-
6 Top-Performing Large-Growth Funds
-
What’s the Difference Between the CPI and PCE Indexes?
-
10 Top-Performing Dividend Stocks of Q3 2024
-
33 Undervalued Stocks
-
Communication Services: Cable’s Broadband Dominance Isn’t as Strong as It Once Was
-
Technology: Strength Continues, With Software Presenting the Best Buying Opportunities
-
Best- and Worst-Performing Stocks of Q3 2024
-
Top Stocks to Own From the Best Fund Managers
-
2 Cheap Stocks Top Managers Have Been Buying
-
The 10 Best Companies to Invest in Now