By Dean Seal


Constellation Brands recorded a big jump in profit for the fiscal first quarter as beer sales jumped and margins expanded, prompting a lift in its full-year earnings guidance.

The maker of beer, wine and spirits posted a profit of $877 million, or $4.78 a share, for the quarter ended May 31, compared with $135.9 million, or 74 cents a share, in the same quarter a year ago.

Stripping out one-time items, adjusted earnings were $3.57 a share. Analysts polled by FactSet had been expecting $3.46 a share.

Revenue rose to $2.66 billion from $2.51 billion in the year-ago quarter, a hair below analyst forecasts for $2.67 billion, according to FactSet.

The Victor, N.Y.-based company said its beer business, comprising brands including Modelo, achieved high single-digit net sales growth and double-digit growth in its operating income as volumes improved and costs came down.

On the bottom line, Constellation expanded margins both with higher sales, the benefits of its cost savings initiatives and the timing of marketing investments.

The company is now eying earnings of $14.63 to $14.93 a share for the full fiscal year, up from a prior forecast for $13.40 to $13.70 a share.


Write to Dean Seal at dean.seal@wsj.com


(END) Dow Jones Newswires

07-03-24 0810ET