Constellation Brands, Inc. (NYSE:STZ) reported a surge in its quarterly profit on Wednesday and lifted its earnings guidance for the current year ending in February, as it keeps benefitting from strong beer sales. STZ shares hit a new 52-week high following the news.
The company is the third biggest beer company in the United States in terms of volume. It has benefited in the previous quarters from becoming the full supplier of Modelo and Corona in the U.S.
The National Beer Wholesalers Association stated that the number of drinking-age Hispanics is anticipated to increase in the U.S. by more than 1 million every year in the coming time, surpassing other demographic groups, and majority of those drinkers have been buying Mexican beers like Modelo Especial and Corona.
Constellation (STZ)’s overall beer sales jumped 14 percent, partly driven by new Corona cans demand. The sales of wine and spirits segments rose 3 percent.
The company posted earnings of $302 million, or $1.49 per share for the quarter ended August, as compared to $195.8 million, or 98 cents per share. Adjusted profit came in at $1.56, well above $1.11 per share one year ago.
Revenue for the quarter came in at $1.73 billion, representing a surge of 8 percent from $1.6 billion in the same period one year ago. Analysts were looking for earnings of $1.32 per share on $1.73 billion in revenue.
Following strong financial results, the international beverage alcohol company said that it is now anticipating adjusted earnings in the range of $5.00 per share to $5.20 per share for the full year. Previously, the company had forecasted adjusted profit in between $4.80 per share to $5.00 per share. Analysts on average were looking for earnings of $4.98 per share.
