Constellion Beats Wall Street Forecasts For Sales, Profit
January 08 2020 - 8:20AM
Dow Jones News
By Micah Maidenberg
Constellation Brands Inc. (STZ) said profit and sales moved
higher in its latest quarter, fueled by strong demand for its
beer.
The brewer of Corona and Modelo beer Tuesday reported earnings
of $360.4 million for its fiscal third quarter, compared with
$303.1 million a year earlier.
The company said it earned an adjusted profit of $2.14, beating
the consensus estimate on FactSet of $1.82 a share.
Sales rose about 1% to $2 billion, a bit more than analysts'
forecasts.
Beer sales were up 8% to $1.31 billion in the quarter. Wine and
spirits sales dropped 10% to $688.8 million, the company said.
Constellation has been rethinking its portfolio amid shifting
consumer interest in alcoholic drinks.
The company struck a deal last month to sell its Ballast Point
craft-beer brand to a Chicago-area brewer. It plans to launch an
alcoholic seltzer to compete with offerings such as Mike's Hard
Lemonade Co.'s White Claw.
Constellation also is working to sell a portfolio of wines to E.
& J. Gallo Winery. The companies said in December they revised
the deal by excluding some brands from the transaction to address
concerns the Federal Trade Commission raised during a review.
Write to Micah Maidenberg at micah.maidenberg@wsj.com
(END) Dow Jones Newswires
January 08, 2020 08:05 ET (13:05 GMT)
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