USA: Constellation Brands expected to post another quarter of strong earnings

Constellation Brands is expected to post another quarter of strong earnings growth when it reports fiscal first-quarter results on July 2, Investors.com reported.

The producer, importer and distributor of alcoholic beverages is expected to report that profit jumped 145% to 93 cents a share, building on robust gains of 35%, 75% and 72% in the three prior quarters. Sales for the quarter are seen more than doubling to $1.41 billion after similarly solid increases in recent quarters.

Constellation's growth has been fueled by its acquisition last year of Mexico-based Grupo Modelo's U.S. business, which includes beer such as Pacifico, Corona Extra, Corona Light, Negra Modelo and Modelo Especial.

The deal reduced the Victor, N.Y.-based company's reliance on wine sales and turned it into America's third largest beer brewer and seller.

Profit for the fiscal year ending in February 2015 is expected to rise 26% to $4.09 a share, followed by a 12% gain the next year.

Constellation has a 97 Composite Rating, tops in the 17-stock Beverages-Alcoholic industry group, which was ranked No. 56 out of 197 as of Friday's IBD.

02 July, 2014