Reuters - Video

Edition: US | UK | IN | CN | JP

video Finance Videos

Reuters Today: Spanish yields seen rising at auction
Reuters Today: Spanish yields seen rising at auction - 06:21
Surprise services boost points to UK recovery
Surprise services boost points to UK recovery - 02:54
Breakingviews: Do as I say, not as I do – German wages
Breakingviews: Do as I say, not as I do – German wages - 05:04
Market Pulse: Spain under fire as investors shun bond sale
Market Pulse: Spain under fire as investors shun bond sale - 03:28
Myanmar's Kyat begins managed float
Myanmar's Kyat begins managed float - 01:59
ASEAN: territorial code of conduct draft by year-end
ASEAN: territorial code of conduct draft by year-end - 01:48
U.S. Morning Call: Stock futures down, JPMorgan to be fined
U.S. Morning Call: Stock futures down, JPMorgan to be fined - 02:08
EMEA Day Ahead:: Thursday
EMEA Day Ahead:: Thursday - 03:13
3XSQ: Customer funds in question; royal return
3XSQ: Customer funds in question; royal return - 05:44
Still cashing in? Hirst retrospective
Still cashing in? Hirst retrospective - 02:32
World's biggest car delivery center
World's biggest car delivery center - 02:41
FACTBOX: Titanic the movie sails again
FACTBOX: Titanic the movie sails again - 02:20

Constellation Brands misses Wall St. forecasts

Tuesday, July 02, 2013 - 01:32

July 2 - Constellation Brands disappoints with earnings due to higher grape costs, but lifts full-year profit outlook. Fred Katayama reports.

▲ Hide Transcript

▶ View Transcript

No toasts for Constellation Brand's first quarter results. The world's largest wine maker with brands like Mondavi and Ravenswood disappointed Wall Street. Earnings fell 27 percent to 52-point-9 million dollars, breaking a five-quarter streak of positive surprises. Higher costs for grapes and overhead squeezed profit. Sales of wine rose during the seasonally slow period and beer sales increased despite poor weather in the U.S., but overall sales missed estimates. Investors have been very bullish on Constellation's prospects. Its stock has vastly outgunned its peers, gaining more than 150 percent since the start of last year. Investors were excited over the company's diversification into beer after it bought the U.S. business of the Mexican brewer, Modelo, last month. Imports are growing faster than domestic brands, and Mexican labels are the most popular among them. And so, analysts were rather optimistic despite the poor quarterly results. Bank of America Merrill Lynch analyst Bryan Spillane writes, "We continue to be bullish on the potential for organic improvement in wine due to the impact of higher wine supplies, a growing category and marketing efforts. We also view the pending transaction to acquire the U.S. rights to Modelo brands as value enhancing." Anticipating lower interest expenses, Constellation boosted its outlook for the full year. But SunTrust believes that guidance will prove conservative given the synergies from the beer deal.

Press CTRL+C (Windows), CMD+C (Mac), or long-press the URL below on your mobile device to copy the code

Close

Constellation Brands misses Wall St. forecasts

Tuesday, July 02, 2013 - 01:32

Featured Videos

Bladerunners - UK lawnmowers in 12-hour endurance race

Bladerunners - UK lawnmowers in 12-hour endurance race

Drivers donned their suits and climbed into their cockpits at the weekend for a 12-hour endurance race with a difference: they weren't driving rallying cars, but lawnmowers
The highs and lows of Macron's first 100 days

The highs and lows of Macron's first 100 days

French President Emmanuel Macron heads into the summer break faced with falling popularity ratings after tough debates in parliament over labour reform and a public ethics law, a standoff with the military and cuts to housing assistance
The vending machine helping fight against HIV

The vending machine helping fight against HIV

An innovative vending machine for HIV tests being piloted in Britain aims to help in the fight to end the epidemic
London's underground mail rail re-opens after 14 years

London's underground mail rail re-opens after 14 years

A never seen before underground mail network is set to open to the public in London, 14 years after it closed down
Dutch students grow their own biodegradable car

Dutch students grow their own biodegradable car

The first car with a biocomposite body structure has been built by Eindhoven University of Technology students