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NEW YORK (TheStreet) -- Constellation Brands (STZ) - Get Constellation Brands, Inc. Class A Report stock is rallying 1.49% to $145.25 in Thursday's pre-market trading session after the wine, beer and spirits maker earlier this morning reported robust third quarter fiscal 2016 earnings that came in higher than expected.

For the latest quarter, the company earned $1.42 cents a share, beating analysts' projections of $1.31 a share. 

Sales came in at $1.64 billion, also higher than estimates of $1.62 billion. 

During the same period the year prior, the company earned $1.10 a share on revenue of $1.54 billion.

"Our wine and spirits business significantly improved margins driven by the Meiomi wine acquisition, as well as favorable mix trends and COGS benefits, while the Canadian business posted solid results, gaining dollar share across major market segments," CEO Rob Sands stated.

Recent quarterly results were boosted by strong sales in its beer business, specifically of Corona Extra and Modelo Especial, the company added. 

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In order to meet growing demand for its Mexican beer, the company said it plans to spend around $1.5 billion to build a new brewery in Mexicali, Mexico.

Overall, for fiscal 2016, the company expects to earn $5.30 a share to $5.40 a share. 

Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:

We rate CONSTELLATION BRANDS as a Buy with a ratings score of A+. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins, good cash flow from operations, compelling growth in net income and notable return on equity. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

You can view the full analysis from the report here: STZ

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