Constellation Brands: quarterly results exceed expectations
(CercleFinance.com) - Constellation Brands posted first-quarter results on Friday that exceeded expectations as the wine and spirits maker largely benefited from strong beer sales.
The maker of Mondavi wine and Svedka vodka said operating income rose to 698 million dollars in the first quarter ended 31 May, from 623 million dollars a year ago.
First-quarter sales rose 2% to 2.1 billion dollars, boosted by its Modelo and Corona beer brands. Beer sales in general rose 7.4% over the quarter.
For fiscal year 2020, which ends in February, Constellation expects to earn between 4.95 dollars and 5.25 dollars per share, with net beer sales expected to grow by between 7% and 9%.
However, wine and spirits sales are expected to drop by 20% to 25%, the group said.
Constellation shares are up 7% in pre-market trading after the report. The stock has risen over 17% year-to-date.
Copyright (c) 2019 CercleFinance.com. All rights reserved.
The maker of Mondavi wine and Svedka vodka said operating income rose to 698 million dollars in the first quarter ended 31 May, from 623 million dollars a year ago.
First-quarter sales rose 2% to 2.1 billion dollars, boosted by its Modelo and Corona beer brands. Beer sales in general rose 7.4% over the quarter.
For fiscal year 2020, which ends in February, Constellation expects to earn between 4.95 dollars and 5.25 dollars per share, with net beer sales expected to grow by between 7% and 9%.
However, wine and spirits sales are expected to drop by 20% to 25%, the group said.
Constellation shares are up 7% in pre-market trading after the report. The stock has risen over 17% year-to-date.
Copyright (c) 2019 CercleFinance.com. All rights reserved.