Constellation raised its outlook for the full 2016 fiscal year. The company now estimates full-year EPS of $5.00 to $5.20, compared a total of $4.44 in the 2015 fiscal year. Constellation said that its beer business continues to expect net sales growth of approximately 10% but now expects operating income growth in the 15% to 18% range. For the wine and spirits business, the company continues to expect net sales and operating income growth to be in the low-to-mid single-digit range, before any benefit from the Meiomi acquisition.
Constellation’s CEO said:
We posted outstanding results for our second quarter driven by the impressive, sustained momentum of our beer business, which is also driving an increase in our EPS projection for the year. … In addition to strong volume growth across our portfolio, we are experiencing favorable commodity and foreign currency benefits, as well as better than expected results from our glass plant, that are driving improved operational results and enabling an increase in our margin expectation for the beer business in fiscal 2016.
Sales in the company’s wine and spirits segment rose 3% year over year, and operating income in the segment rose 4%. Beer segment sales rose 14% year over year and operating income rose 31%.
Shares were inactive in premarket trading Wednesday, having closed Tuesday at $131.32, in a 52-week range of $80.70 to $132.53. Prior to this latest report, Thomson Reuters had a target price of $132.50 on the company’s shares.
ALSO READ: Merrill Lynch Gets Nervous: Buy Only High-Quality Stocks Now
The #1 Thing to Do Before You Claim Social Security (Sponsor)
Choosing the right (or wrong) time to claim Social Security can dramatically change your retirement. So, before making one of the biggest decisions of your financial life, it’s a smart idea to get an extra set of eyes on your complete financial situation.
A financial advisor can help you decide the right Social Security option for you and your family. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you.
Click here to match with up to 3 financial pros who would be excited to help you optimize your Social Security outcomes.
Have questions about retirement or personal finance? Email us at [email protected]!
By emailing your questions to 24/7 Wall St., you agree to have them published anonymously on a673b.bigscoots-temp.com.
By submitting your story, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
