Constellation Brands Inc.’s stock soared after the company reported double digit percentage increases in its third-quarter sales and profit, driven by the growth of its beer business.
Midday, its shares (NYSE: STZ) were trading at $76.40, up more than 9 percent from Tuesday’s close of $69.93.
The Victor company reported third quarter earnings of $211 million, or $1.07 a share, compared with net income of $109.5 million, or 58 cents a share, during last year’s quarter.
Sales grew 88 percent to $1.44 billion from $767 million a year ago.
Analysts polled by Thomson Reuters expected Constellation Brands to report earnings per share of 91 cents on sales of $1.38 billion.
“The strong marketplace momentum we experienced this summer for our beer portfolio, especially Corona and Modelo Especial, continued throughout the fall and into the holiday selling season,” said Robert Sands, Constellation Brands’ president and CEO, in a statement. “New marketing campaigns along with superior sales and distributor execution at retail helped drive these outstanding results.”
Constellation Brands completed the acquisition in June of Grupo Modelo S.A.B. de C.V.'s U.S. beer business from Anheuser-Busch InBev SA for some $4.75 billion.
That deal, along with strong consumer demand and the return of distributor inventories to more normal levels, were key drivers in the firm’s quarterly performance, the company said.
Wine and spirits sales were $787.1 million, up from $766.9 million last year. Wine volume growth was partially offset by higher promotional spending and lower bulk spirits sales.
Constellation Brands raised its full-year 2014 earnings per share guidance to $3.10 to $3.20 from $2.80 to $3.10.
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