Constellation Brands Inc. (STZ), a leading international producer and marketer of beverage alcohol brands, released solid third-quarter fiscal 2015 results, wherein adjusted earnings of $1.23 a share surpassed the Zacks Consensus Estimate of $1.14. Moreover, the bottom line rose nearly 12% from $1.10 a share earned in the year-ago quarter.
Based on the strong beer shipment volume performance, Constellation Brands raised its fiscal 2015 earnings per share forecast, projecting adjusted earnings of $4.25 – $4.35 and GAAP earnings of $3.90 – $4.00.
Earnings Estimate Revision: The Zacks Consensus fiscal 2015 Estimate portrays a slight upside in the last 60 days. Constellation Brands' performance so far in fiscal 2015 gives a mixed picture. Though the company had posted a positive earnings surprise of 16.3% in the first quarter, it delivered a negative surprise of 3.5% in the second quarter. However, the company has made a comeback posting a positive earnings surprise of 7.9% in third-quarter fiscal 2015.
In the trailing four quarters, the company outperformed the Zacks Consensus Estimate by an average of 10.1%.
Revenues: Constellation Brands generated net sales of $1,542 million that increased 7% year over year and outdid the Zacks Consensus Estimate of $1,504 million primarily due to higher volumes for the beer business.
Key Events: Constellation Brands formed a 50-50 joint venture with Owens-Illinois to acquire the Nava glass plant in Nava, Mexico. Through investment in this joint venture and the acquisition of the glass plant, Constellation Brands has taken its glass sourcing strategy a step forward as it expects the facility to cater to more than 50% of the glass demand of its u.s. beer business.
Zacks Rank: Currently, Constellation Brands carries a Zacks Rank #3 (Hold) which is subject to change following the earnings announcement.
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