Wine, beer and spirits company Constellation Brands Inc (STZ) increased its full-year guidance after reporting second-quarter earnings and revenue both topped estimates.
The company increased its earnings guidance to a range of $6.30 to $6.45 a share from a prior range of $6.05 to $6.35 a share. Second-quarter earnings totaled $1.77 a share, up from $1.49 a year earlier and the Capital IQ estimate for $1.65. Total revenues of $2.02 billion were up from $1.73 billion in the same period
a year ago, topping projections for $1.96 billion.
Beer sales rose 20% driven by volume growth and “favorable” pricing, the company said, along with the benefits of its acquisition of Ballast Point. Wine and spirit sales rose 12% due to volume growth and the acquisition of Meiomi and The Prisoner wine brands.
Beer sales are expected to grow 16% to 17% in 2017 and wine and spirit sales are forecast to increase in the mid to high-single digit range, the company said.
Constellation said it will also pay a quarterly cash dividend of $0.40 a share on Class A stock and $0.36 on Class B shares, on par with a prior payout. It also announced it has reached an agreement to buy High West Distillery for $160 million. The transaction is expected to close this month.