Constellation Brands Inc. (Constellation Brands (STZ)) popped after the bell Tuesday, posting first-quarter results that comfortably beat what Wall Street was expecting. The beer and wine giant reported earnings of $3.43 per share on revenue of $2.43 billion, topping the consensus estimates of $3.21 and $2.39 billion, respectively.
CEO Nicholas Fink struck an optimistic tone in the earnings release, pointing to the company's flagship brands as engines of future growth. "I see significant runway to continue growing our leading brands with an even greater emphasis on understanding consumer occasions and relevance — increasingly looking at our business through the lens of when, where and why consumers are choosing our brands," Fink said.
He singled out Modelo Especial as a brand with "a significant opportunity ahead of it, supported by both distribution expansion and relatively low unaided awareness for a brand of its scale." And for Corona Extra, the focus is on "driving excitement and engagement with one of the highest brand equity and most loved brands in the industry."
Looking ahead, Constellation affirmed its full-year adjusted earnings guidance of $11.20 to $11.90 per share, which brackets the analyst estimate of $11.75. That steady outlook, combined with the quarterly beat, gave investors reason to cheer: shares were up 2.09% to $142 in extended trading Tuesday.
