Wine Maker Crushes Earnings Expectations

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Wine and spirits maker Constellation Brands reported fiscal Q2 adjusted net earnings of 77 cents per share.Analysts were expecting 66 cents per share.

Net sales fell 20% to $690 million.  But analysts were expecting $668 million.

Constellation’s brands include Robert Mondavi, Clos du Bois, Arbor Mist, and Ruffino.

“The U.S. wine and spirits market remains healthy despite a challenging consumer environment,” said CEO Rob Sands.

“We are enthusiastic about the initiatives we have targeted for the key holiday selling season and our focus in the area of innovation and new product development is already paying dividends as brands like Simply Naked, Primal Roots, Dreaming Tree, Rex Goliath Moscato, Woodbridge Malbec and Ruffino Prosecco are being well received in the marketplace.”

For the full fiscal year, management expects to deliver $2.00 to $2.10 of adjusted earnings per share.  This is ahead of analysts’ expectation for $1.98 per share.

Shares of Constellation Brands are higher in premarket trading.

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