Constellation Brands Q1 Profit Rises

06-Jul-2015 - USA

Alcoholic beverage maker Constellation Brands Inc. reported that its net income attributable to the company for the first-quarter increased to $238.6 million from the prior year's $206.7 million, with earnings per Class A Common Stock improving to $1.18 from $1.03 last year.

Comparable earnings for the quarter grew to $1.26 per share from $1.07 per share in the previous year. Analysts polled by Thomson Reuters expected the company to report earnings of $1.24 per share.

Analysts' estimates typically exclude special items.

Net sales for the quarter rose to $1.631 billion from $1.526 billion in the prior year. Wall Street analysts had a consensus revenue estimate of $1.62 billion for the quarter.

The company increased fiscal 2016 outlook driven primarily by strong beer business performance. It now expects reported basis earnings per share of $4.60 - $4.80, and comparable basis earnings per share of

$4.80 - $5.00 for fiscal 2016. Analysts expect the company to report earnings of $4.88 per share for fiscal 2016.

The company said in April that it expected reported earnings to be in a range of $4.55 to $4.75 per share and comparable earnings of $4.70 to $4.90 per share for fiscal 2016.

The company today said it agrees to purchase the Meiomi wine brand for approximately $315 million. The transaction, which is subject to regulatory approval, is expected to close around the beginning of August and to be $0.03 - $0.04 accretive to earnings per share for fiscal 2016.

On June 30, 2015, Constellation's board declared a quarterly cash dividend of $0.31 per share of Class A Common Stock and $0.28 per share of Class B Common Stock, payable on August 25, 2015 to stockholders of record as of the close of business on August 11, 2015.

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