Constellation Brands, the global seller of wine and spirits, boosted its profit forecast for the year after sales of beer brands such as Modelo Especial and Corona Extra fuelled growth.
Earnings will be $4.25 to $4.35 a share this year, the Victor, New York-based company said today in a statement. That’s up from a previous forecast of $4.10 to $4.25 and above the average analyst estimate of $4.24. Constellation’s shares jumped as much as 6 per cent after the results were released.
The company’s beer sales gained 16 per cent last quarter, outpacing its total growth of 7 per cent. That helped make up for lower wine sales and higher spending on promotions. Constellation bought the rights to Corona, the country’s most popular beer import, in 2013 as part of a $5.3 billion deal with Belgium’s Anheuser-Busch InBev NV.
“Our beer business continued to gain share across all channels during the third quarter driven by Modelo Especial, Corona Extra and Modelo Especial Chelada,” chief executive officer Rob Sands said in the statement. “Our outstanding beer portfolio is experiencing tremendous momentum.”
The shares climbed as high as $109.24 in New York, the biggest intraday gain since July. Constellation shares rose 39 per cent last year, marking the third straight year of gains.
Bloomberg News, edited by Hospitality Ireland
