Constellation Brands Posts Strong First Quarter Earnings

Fairport, NY (AHN) - The world's largest winemaker, Constellation Brands, reported earnings on Tuesday of 20 cents a share for their fiscal first quarter, ended May 31.

Constellation reported net income of $44.6 million, up from the $29.8 million the same period a year earlier. Excluding one time restructuring and acquisition charges, the company said earnings were 34 cents a share. Revenue rose 3 percent to $931.8 million.

Analysts polled by Thomson Reuters were expecting earnings of 31 cents a share on revenue of $906.1 million.

Constellation said profits increased on strong sales of its new higher margin products. Gross margin rose to 35.3 percent from 29.8 percent.

"Growth in the U.S. premium wine market remains very healthy at about 7 percent on a dollar basis," Chief Executive Rob Sands said in a conference call with analysts, according to the Associated Press.

Constellation forecast full year earnings, excluding items, of $1.68 to $1.76 a share on mid-single digit revenue growth. Analysts are estimating revenue growth of 4 percent with earnings a share of $1.70.

Shares of Constellation (STZ) were trading higher by 4 percent Tuesday afternoon.