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Constellation Brands Inc. stock dropped more than 2 percent in midday trading after it reported a decline in profit for the first quarter.
Shares of Constellation Brands (NYSE: STZ) were trading midday at $51.99, down from its Monday close of $53.15.
The Victor company earned $52.9 million, or 27 cents a share in the first quarter, compared with $72 million, or 38 cents a share, a year earlier. Adjusted earnings per share in the first quarter were 38 cents a share, missing Street expectations.
Analysts polled by Thomson Reuters expected Constellation Brands to post sales of $675 million. Earnings per share were expected to be flat at 40 cents.
First-quarter sales rose 6 percent, to $673.4 million from $634.8 million a year earlier.
“From an operational perspective, we are off to a positive start for the year, as we achieved our first quarter goals and objectives,” said Robert Sands, president and CEO of Constellation. “I am particularly pleased with our commercial results as we continued to gain market share in IRI channels across our beer, wine and spirits businesses during the quarter.”
On June 7, Constellation Brands announced it had completed its acquisition of Grupo Modelo S.A.B. de C.V.’s U.S. beer business from Anheuser-Busch InBev SA for some $4.75 billion.
The transaction includes full ownership of Crown Imports LLC, which provides Constellation with complete, independent control of all aspects of the U.S. commercial business; a brewery in Nava (Piedras Negras), Mexico; exclusive perpetual brand license in the United States to import, market and sell Corona and the Modelo brands Crown sells, and the freedom to develop brand extensions and innovations for the U.S. market.
In the filing, the firm also adjusted its full-year fiscal 2014 earnings guidance to a range of $2.32 to $2.62 a share, revised from previous estimates of $2.60 to $2.90 a share.
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