Constellation Brands Earnings: Net Income Beats These Expectations

S&P 500 (NYSE:SPY) component Constellation Brands Inc. (NYSE:STZ) posted lower net income in the second quarter compared with a year-earlier period. Constellation Brands is a wine company with operations in the United States, Canada, the United Kingdom, Australia and New Zealand.

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Constellation Brands Inc. Earnings Cheat Sheet

Results: Net income for Constellation Brands Inc. fell to $125 million (67 cents per share) vs. $131 million (71 cents per share) a year earlier. This is a decline of 4.6% from the year-earlier quarter.

Revenue: Remained constant at $699 million.

Actual vs. Wall St. Expectations: Constellation Brands Inc. beat the mean analyst estimate of 39 cents per share. It beat the average revenue estimate of $646.6 million.

Quoting Management: “As we execute our profitable, organic growth strategy, we are encouraged by the strength of our core beer, wine and spirits businesses including the success of our new product introductions and innovation pipeline across our entire portfolio of outstanding brands,” said Rob Sands, president and chief executive officer, CBI. “We remain excited about the prospect of owning 100 percent of Crown Imports, which represents a transformational step for our company as it will solidify Constellation`s position in the U.S. beer industry for the long term. This transaction is still targeted to close during the first quarter of calendar 2013.”

Key Stats:

The company has beaten estiamtes for two quarters in a row. In the first quarter, it topped expectations with net income of 69 cents versus a mean estimate of net income of 38 cents per share.

Looking Forward: The outlook for the company’s results in the upcoming quarter is unfavorable. The average estimate for the third quarter is 57 cents per share, down from 62 cents ninety days ago. At $2 per share, the average estimate for the fiscal year has fallen from $2.23 ninety days ago.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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