Constellation Brands, Inc. (NYSE:STZ), a premium wine company, reported a 4 percent increase in profit for the fiscal third quarter after the company experienced strong sales of its beer, wine, and spirits portfolio during the holiday season.
The wine company’s net income was $110 million during the three months period that ended November 30. During the same period a year earlier, the company earned $105 million.
Constellation Brands, Inc. (NYSE:STZ) said its consolidated net sales during the period rose by 9 percent to $767 million, from $700.7 million. The company posted $0.58 diluted earnings per share during the period, compared with $0.52 diluted EPS during the same quarter a year ago.
The wine company beat the $746.2 million sales and the $0.55 earnings per share consensus estimate by Wall Street analysts, based on data compiled by FactSet.
In a statement, Rob Sands, president and CEO of Constellation Brands, Inc. (NYSE:STZ) said, "We continue to post solid depletion trends for our portfolio and outperform the U.S. wine and spirits industry in the SymphonyIRI channels as our promotional investments have driven distribution gains at retail.”
Sands added that the company’s innovation initiatives play a key role in the success it has had in the market. According to him, the company’s focus brand portfolio, including Woodbridge, Rex Goliath, Kim Crawford, Ruffino and Mark West, are performing well.
According to Constellation Brands, equity earnings from its 50 percent stake in Crown Imports beer declined from $43 million to $39 million. The company expects to close the transactions to purchase the remaining 50 percent stake in Crown Imports for $1.85 billion, during the first quarter of 2013.
According to Sands, Crown Imports continue to outperform the U.S. beer industry due to the strong performance of Modelo Especial, which surpassed its 40 million cases milestone in 2012. During the third quarter, Crown generated $547 million net sales.
The CEO of the company is confident that its Crown brands will continue to outperform the U.S. beer industry. Sands said, "The brand is gaining distribution at retail and experiencing continued discovery by general market consumers in addition to the already strong growth driven by Hispanic consumers.”
Constellation Brands, Inc. (NYSE:STZ) raised its full year 2013 outlook and expects to earn around $2.10 to $2.20 per share. Its previous estimate was around $2 to $2.10 per share.