Constellation Brands Inc. (NYSE: STZ) reported first-quarter fiscal 2014 adjusted diluted earnings per share (EPS) of $0.38 on revenue of $673 million. In the same period a year ago, the wine and beer company reported adjusted diluted EPS of $0.40 on revenue of $634.8 million. First-quarter results also compare to the Thomson Reuters consensus estimates for EPS of $0.41 and $674.24 million in revenue.

Constellation’s net income on a GAAP basis fell 27% year over year, while revenue rose 6%. The company said lower operating income was the result of higher grape and SG&A costs, partially offset by growth in sales.

Constellation lowered its forecast for adjusted diluted EPS for the fiscal year ending in February 2014 to $2.60 to $2.90. The company’s EPS for its 2013 fiscal year totaled $2.19. The forecast includes the effect of Constellation’s acquisition of the remaining 50% of Crown Imports, which closed last month. The consensus estimate for full-year earnings is $2.82 on revenues of $4.89 billion.

The company’s CEO said:

The recent closing of our transformational beer acquisition has been a rewarding way to kick off fiscal 2014. This deal positions Constellation within the top ranks of the U.S. beer industry and significantly increases the size and scope of our company. From an operational perspective, we are off to a positive start for the year, as we achieved our first quarter goals and objectives.

Equity earnings from its previous 50% stake in Crown Imports totaled $66 million in the quarter.

In premarket trading today, shares are down 2.2%, at $52.00 in a 52-week range of $21.37 to $54.65. Prior to today’s report, Thomson Reuters had a target price of around $58.10 on the company’s shares.

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