Why Jim Cramer Was Surprised That Constellation 'Ran Up'
Constellation reported earnings on Thursday.
For the quarter ended Aug. 31 the Victor, N.Y., liquor producer reported net income of $512.1 million, or $2.62 per Class A share, compared with a loss of $525.2 million, or $2.77, in the year-earlier quarter.
The latest adjusted earnings of $2.76 a share exceeded the consensus analyst expectation of $2.51 a share in a survey by FactSet.
Net sales for the period fell 3.6% to $2.26 billion, also topping the analyst estimate of $2.19 billion.
"We remain confident in the resiliency of our business, our brand health and consumer takeaway remain strong, and we are well-positioned to deliver a solid year of organic growth in fiscal 2021," Chief Executive Bill Newlands said in a statement.
Constellation reported that its operating margin widened 0.7 percentage point in the quarter to 42.5%, "as benefits from favorable pricing and reduced marketing spend were partially offset by an increased cost of goods sold."