Shares of wine and spirit purveyor, Constellation Brands Inc., (NYSE : STZ) jumped 61 cents, or 3.4 percent, to $18.37 after the company announced better-than-expected second quarter financial results. Although second-quarter net income fell 8.4 percent on lower wine, beer and spirits sales in fiscal Q2 profits, the Company exceeded Wall Street earnings per share predictions and met full-year goals.
For the three months ended Aug. 31, Constellation Brands posted earnings of $91.3 million, or 43 cents per share. In the same period last year, the Company earned $99.7 million, or 45 cents per share. Revenue fell 2 percent to $863 million from $876.8 million. Excluding $17 million in restructuring and other one-time items, the company earned 52 cents per share, beating Wall Street expected earnings estimate of 49 cents per share.
Chief Executive Officer Rob Sands said in a statement, “While some uncertainty remains in global markets, we are focused on building a stronger business for the future,” said Sands. “We have demonstrated this during the second quarter by generating strong free cash flow, paying down debt and driving profitable organic growth.”
Constellation Brands, Inc, the world’s biggest winemaker by volume, draws more than 90 percent of its sales from moderately-priced wines. Among its 100-plus brands are Clos du Bois, Woodbridge by Robert Mondavi, Blackstone and Ravenswood. Although the majority of sales derives from wine the Company also makes Sdveka vodka as well as operates a wholesale joint venture with Mexican brewer Grupo Modelo SA, importing beers like Corona and Negra Modelo from Mexico, Tsingtao from China and St. Pauli Girl from Germany.