Constellation Brands Inc. (STZ) topped market estimates on sales and earnings for the second quarter of 2019. Shares were up over 3% during premarket hours on Thursday.
The New York-based brewer reported net sales of $2.3 billion, up 10% compared to the same period last year. Net income attributable to Constellation Brands increased 136% to $1.14 billion or $5.87 per share from the prior-year period. Comparable EPS grew 16% to $2.87.
The company posted sales increases in both its Beer and Wine and Spirits divisions. In the beer division, the Modelo and Corona brands drove strong portfolio performance and market share gains with depletion growth of 10%. In the wine and spirits division, net sales benefited from strong shipment volume growth.
For the full year of 2019, the company expects reported EPS to come in the range of $14.10 to $14.25 and comparable EPS to come in the range of $9.60 to $9.75.
The beer business expects net sales and operating income growth of 9% to 11% while the wine and spirits business expects net sales and operating income growth of 2% to 4% for 2019.
On October 3, Constellation declared quarterly cash dividends of $0.74 per share of Class A common stock and $0.67 per share of Class B common stock, payable on November 20 to shareholders of record on November 6.
In August, the company had announced its plan to invest $4 billion in Canopy Growth Corporation, thereby increasing its stake to 38% in the medical marijuana company. The transaction is expected to close by October-end.
Constellation Brands looks to cannabis for a high, ups stake in Canopy