Constellation Brands Inc. (STZ - Free Report) , a leading international producer and marketer of beverage alcohol brands, released solid second-quarter fiscal 2017 results, wherein adjusted earnings of $1.77 a share surpassed the Zacks Consensus Estimate of $1.66. Moreover, the bottom line rose nearly 13% from $1.56 a share earned in the year-ago quarter.
Based on the sustained strength of its beer business, Constellation Brands raised its fiscal 2017 forecast, projecting adjusted earnings per share of $6.30–$6.45 and GAAP earnings of $6.25–$6.40.
Earnings Estimate Revision: The Zacks Consensus fiscal 2017 Estimate portrays an upside in the last 30 days. Constellation Brands’ performance in the trailing four quarters (including the quarter under review) gives a positive picture. The company outperformed the Zacks Consensus Estimate by an average of 5.8% in the trailing four quarters.
Revenues: Constellation Brands generated net sales of $2,021.2 million that increased 17% year over year and outdid the Zacks Consensus Estimate of $1,959.1 million primarily due to higher organic sales as well as benefits from the acquisition of the Ballast Point craft beer, and the Meiomi and The Prisoner wine brands. On a constant-currency basis, organic sales grew 13%.
Key Events: Constellation Brands has agreed to buy the Utah-based High West Distillery for about $160 million. The acquisition will comprise a portfolio of unique, award-winning and high-end American straight whiskeys and other spirits brands. This acquisition will mark the company’s entry into the vibrant and lucrative high-end craft whiskey market segment. The company expects to complete the acquisition by end of October.
Zacks Rank: Currently, Constellation Brands carries a Zacks Rank #2 (Buy) which is subject to change following the earnings announcement. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Check back later for our full write up on Constellation Brands’ earnings report!
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