Constellation Brands Earnings Cheat Sheet: Profit Rises Year Over Year

S&P 500 (NYSE:SPY) component Constellation Brands, Inc. (NYSE:STZ) reported net income above Wall Street’s expectations for the first quarter. Constellation Brands Inc. is a wine company with operations in the U.S., Canada, the United Kingdom, Australia and New Zealand.

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Constellation Brands Earnings Cheat Sheet for the First Quarter

Results: Net income for the beverage company rose to $75 million (35 cents per share) vs. $49.1 million (20 cents per share) in the same quarter a year earlier. This marks a rise of 52.7% from the year earlier quarter.

Revenue: Fell 19.4% to $635 million from the year earlier quarter.

Actual vs. Wall St. Expectations: STZ reported adjusted net income of 39 cents per share. By that measure, the company beat the mean estimate of 37 cents per share. Estimates ranged from 35 cents per share to 44 cents per share. It fell short of the average revenue estimate of $648.5 million.

Quoting Management: “I am pleased with our first quarter financial performance which was generally in-line with our expectations. Highlights for the quarter include greatly improved operating margin and favorable U.S. product mix, strong free cash flow and ongoing debt reduction. We believe focused marketing efforts at Crown are driving momentum in the beer business,” said Rob Sands, president and chief executive officer, Constellation Brands. “With the sale of our Australian and U.K. business, we have significantly improved our financial profile and simplified our business. As a result, we are taking the next logical step to increase efficiencies and streamline our operations worldwide.”

Key Stats:

The company has now topped analyst estimates for the last four quarters. It beat the mark by 9 cents in the fourth quarter of the last fiscal year, by 4 cents in the third quarter of the last fiscal year, and by 3 cents in the second quarter of the last fiscal year.

Revenue fell last quarter after seeing a rise the quarter before. Revenue dropped 0.9% to $715.3 million in the fourth quarter of the last fiscal year from the year earlier.

Competitors to Watch: Castle Brands Inc. (AMEX:ROX), Diageo plc (NYSE:DEO), Willamette Valley Vineyards, Inc. (NASDAQ:WVVI), Molson Coors Brewing Co. (NYSE:TAP), Craft Brewers Alliance, Inc. (NASDAQ:HOOK), Compania Cervecerias Unidas S.A. (NYSE:CCU), Fortune Brands, Inc. (NYSE:FO), Anheuser-Busch InBev (NYSE:BUD), Boston Beer Company (NYSE:SAM) and Companhia de Bebidas das Americas (NYSE:ABV).

Stock Performance: Shares of STZ are up almost 1% today…

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(Source: Xignite Financials)