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Why Jim Cramer Was Surprised That Constellation 'Ran Up'

Jim Cramer has some thoughts on Constellation's quarter.

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." 

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