Constellation Brands Inc. (NYSE: STZ) reported fourth-quarter and fiscal 2016 results before markets opened Wednesday. For the quarter, the premium wine and beverage company reported adjusted earnings per share (EPS) of $1.19 on net sales of $1.54 billion. In the same period a year ago, the company reported EPS of $1.03 on revenue of $1.36 billion. Fourth-quarter results also compare to the MarketWatch estimates for EPS of $1.14.

For the full year, Constellation posted EPS of $5.43 and revenues of $6.55 billion, compared with 2015 EPS of $4.44 and revenues of $6.03 billion. The MarketWatch EPS estimate was $5.38.

Constellation estimates full-year 2017 EPS of $6.00 to $6.30. MarketWatch has a full-year estimate of $6.11 per share.

Revenues in the beer business are estimated to rise 14% to 17% year over year, with operating cash flow of $1.5 billion to $1.7 billion. Free cash flow is forecast at $250 million to $350 million. Sales growth in the company’s wine and spirits business is expected to rise in the mid to high single-digit range. Revenue guidance includes the impact of announced acquisitions, including the morning’s notice that Constellation is acquiring Prisoner Wine for approximately $285 million in cash.

Constellation CEO Rob Sands said:

In fiscal 2016, our beer business delivered industry-leading market results as the #1 growth contributor in the U.S. beer category, achieving stellar growth across the portfolio. We also acquired Ballast Point, one of the most awarded, major craft brewers in the industry, and solidified our position in the high-end segment of the U.S. beer market. …  In our wine and spirits business, we further strengthened the financial profile by channeling resources and brand-building investments toward higher-growth, higher-margin brands. This strategy, combined with the Meiomi wine acquisition, helped to drive healthy margin expansion and earnings growth. Overall, we are excited to build on the success of fiscal 2016, as we are targeting impressive results for the coming year.

Constellation also raised its quarterly dividend from $0.31 to $0.40 and said the company is considering an initial public offering for a portion of its Canadian wine business.

Shares traded up about 2% in premarket trading Wednesday to $154.60. The stock’s 52-week range is $114.49 to $155.68. Prior to the report, Thomson Reuters had a target price of $132.50 on the company’s shares.

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