Constellation Tops Sales, Profit Estimates On Corona, Modelo Strength
Constellation Brands Inc on Thursday reported quarterly sales and profit well above analysts' estimates, as the brewer sold more of its popular Corona and Modelo beers, sending its shares up about 3% before the bell.
Beer sales rose 9.3% to $1.09 billion (€970 million) in the fourth quarter ended 28 February as its brands Corona Premier, Familiar and Modelo Especial gained market share in North America during the winter holiday season.
Analysts had forecast sales of $1.07 billion, according to Refinitiv IBES data.
Sales of wines and spirits, however, fell 7.6% in the quarter.
On Wednesday, the company said it would sell about 30 of its wine and spirit brands that retail under $11 a bottle to California-based E. & J. Gallo Winery for $1.7 billion, as the brewer focuses on its portfolio of premium brands such as Robert Mondavi, Meiomi and Kim Crawford.
Net sales fell about 2% to $1.80 billion (€1.60 billion), but was above analysts' estimates of $1.74 billion (€1.6 billion), according to Refinitiv IBES data.
Net income attributable to the company rose to $1.24 billion, or $6.37 per class A common share, for the quarter, from $910.5 million, or $4.56 per share, a year earlier.
Excluding certain items, the company earned $1.84 per share compared to the average analysts' estimate of $1.71.