Constellation Brands Reports Higher-Than-Expected 4Q Operating Profit

By Matt Grossman

Constellation Brands Inc. reported an adjusted profit for its fiscal fourth quarter ahead of analyst expectations on strong growth in beer sales.

The company, which owns brands of alcoholic beverages, on Friday posted a profit of $398.4 million, or $2.04 a share, compared with a $1.24 billion profit, or $6.37 a share, for the previous fourth quarter.

Adjusted earnings were $2.06 a share for the quarter. Analysts polled by FactSet had forecast adjusted earnings of $1.64 a share.

Revenue amounted to $1.9 billion for the quarter, up from $1.8 billion a year earlier. Analysts expected revenue of $1.84 billion.

Beer sales grew 8.9% year-over-year for the quarter, while net sales of wine and spirits grew 1.2%. The company's beer brands include Corona, Modelo and Pacifico, while its wine and spirits group includes Svedka Vodka, Casa Noble Tequila and Robert Mondavi wines.

The company's fiscal fourth quarter ended Feb. 9, before the new coronavirus became a global pandemic. The last weeks of the quarter coincided with the launch of Corona Hard Seltzer, which Constellation said is off to a strong start.

Write to Matt Grossman at [e-mail]

(END) Dow Jones Newswires

April 03, 2020 08:06 ET (12:06 GMT)

Copyright (c) 2020 Dow Jones & Company, Inc.