Constellation Brands Inc. (STZ), a leading international producer and marketer of beverage alcohol brands, released solid first-quarter fiscal 2016 results. The adjusted earnings of $1.26 per share surpassed the Zacks Consensus Estimate of $1.22, and surged 18% year over year buoyed by its beer business.
Constellation Brands now projects fiscal 2016 adjusted earnings per share between $4.80 and $5.00, up from a band of $4.70 to $4.90 forecasted earlier. On a GAAP basis, management expects earnings in the band of $4.60 to $4.80 per share.
Earnings Estimate Revision: The Zacks Consensus Estimate for fiscal 2016 has been trending upwards over the past 30 days. In the trailing four quarters (including the quarter under review), the company outperformed the Zacks Consensus Estimate by an average of 4.3%.
Revenues: Constellation Brands generated net sales of $1,631 million that increased 7% year over year, and came ahead of the Zacks Consensus Estimate of $1,615 million.
Key Events: Constellation Brands announced that it is acquiring Meiomi wine brand for $315 million. The deal, which is expected to conclude at the beginning of August, is anticipated to add 3 cents to 4 cents a share to the bottom-line for fiscal 2016.
Zacks Rank: Currently, Constellation Brands carries a Zacks Rank #2 (Buy) which is subject to change following the earnings announcement.
Stock Movement: Constellation Brands’ shares are up nearly 2.6% during pre-market trading hours following the earnings release. Clearly, a positive sentiment is palpable among investors following the company’s better-than-expected results.
Check back later for our full write up on Constellation Brands’ earnings report!
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