Constellation Brands beats the Street on a beer boom
Select language to see a machine translation of this article. The original language of the Article is English and the translation is provided for your convenience.

Constellation Brands beats the Street on a beer boom

Constellation Brands, a major player in the alcoholic drinks industry, reported quarterly earnings last week that blew the Street’s expectations away. The company, which owns popular cerveza beer Corona (amongst others) said that a booming beer business helped it exceed predictions. The company also took this opportunity to praise its forward-thinking investment strategy, which it says will push even more growth in the future.

Constellation’s share price surged last week on the back of results

graph 0810 constellation

SOURCE: Yahoo Finance

Constellation delivered earnings and revenue that easily topped analysts’ predictions. The company said adjusted earnings per share came in at $2.87, against expectations for the quarter of $2.56. Likewise, revenue rose to $2.99 billion, against expectations of $2.25. Beer was the outperformer for the quarter, and Constellation said that the segment saw its operating margin grow by ten basis points, to 41.3%, from the previous quarter.

The company’s president and chief executive officer, Rob Sands, described Constellation’s beer segment as: “the number one share gainer in the U.S. beer industry,” and praised its “exceptional performance.”

Speaking to the results more generally, Sands added: "I am pleased that we have been able to increase our EPS guidance range for the year based on our year-to-date results and the plans we have in place for the remainder of the year. Given Constellation’s leadership position in the high-end U.S. beer market […] I believe Constellation will continue to be a multiyear double-digit EPS compounder.”


Dominion holds Constellation Brands in its Global Trends Luxury Fund.

If you would you like to receive the Newsfeeds daily, please click here to sign up now!

Help us make this Newsfeed better by rating this article. 1 star = Poor and 5 stars = Excellent
0.0/5 rating (0 votes)

The views expressed in this article are those of the author at the date of publication and not necessarily those of Dominion Fund Management Limited. The content of this article is not intended as investment advice and will not be updated after publication. Images, video, quotations from literature and any such material which may be subject to copyright is reproduced in whole or in part in this article on the basis of Fair use as applied to news reporting and journalistic comment on events.