Alcoholic beverage maker Constellation Brands, Inc. (NYSE:STZ) on Wednesday posted market-beating earnings and revenue results, lifted its forecast, and announced another key acquisition.
The Victor, NY-based company reported fiscal Q2 EPS of $1.77, easily beating Wall Street’s estimate of $1.65. Revenue surged 16.6% from last year to $2.02 billion, also beating expectations of $1.96 billion.
Looking ahead, STZ boosted its full-year 2017 earnings outlook. The company now expects EPS to range from $6.30 to $6.45, up from prior guidance of $6.05 to $6.35. Analysts are looking for a profit of $6.30 per share for the year.
Other interesting notes from the report included:
From the press release:
“The strong consumer demand for our portfolio continues to propel our business. During the quarter, we gained share and improved margins across our business, while continuing to make smart investments designed to fuel growth today and in the future. I am proud of our accomplishments in the first half of the year, which are enabling an increase in our overall guidance for the year,” said Rob Sands, president and chief executive officer, Constellation Brands.
The company also announced another key acquisition amid the report:
Today, the company announced an agreement to purchase the Utah-based High West Distillery for approximately $160 million. This acquisition includes a portfolio of distinctive, award-winning and high-end American straight whiskeys and other spirits brands. With High West, which has experienced double-digit volume growth year over year for the past three years, Constellation Brands enters the dynamic and profitable high-end craft whiskey market segment. “High West will be an excellent addition to our spirits portfolio and we look forward to partnering with the team there to continue to develop distinctive high-quality whiskeys that consumers love,” said Sands. The transaction is expected to close by the end of October.
STZ shares rose $5.99 (+3.61%) to $171.84 in premarket trading Wednesday. Year-to-date, STZ has gained 16.43%, easily beating out the S&P 500 index’s 5.29% rise in the same period.