Constellation Brands Shares Eye New Record Pre-Bell Q2 Results Beat Street Forecasts

Constellation Brands Inc (STZ) shares were higher 6% in recent pre-market trade after the producer of alcoholic beverages reported fiscal Q2 non-GAAP earnings per share of $2.47, compared to $1.77 for the same period last year, and well above the Capital IQ consensus forecast of $2.17.

STZ was at $212.91 recently, a new record if it holds into regular trade. The current 52-week range is between $144 and $205.12.

Revenues net of excise taxes for the quarter were $2.08 billion, up from $2.02 billion for the year-ago quarter, and ahead of the analyst forecast of $2.06 billion.

The company also raised its full-year 2018 adjusted EPS guidance to a range of $8.25 to $8.40 from previously $7.90 to $8.10, primarily driven by strong beer business results. Analysts have been expecting FY adjusted EPS of $8.18.

It is also forecasting 2018 net sales growth of beer in the range of 9% to 11%, and operating income growth in the range of 17% to 19%.

For the wine and spirits business, the company continues to expect net sales to decrease in the range of 4% to 6%, and that operating income will be flat.

For the whole company, Constellation expects expects net sales growth of 4% to 6%, and operating income growth of 5% to 7% for fiscal 2018.

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