video Finance Videos
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
Constellation Brands misses Wall St. forecasts
Tuesday, July 02, 2013 - 01:32
Top News »
2:22pm BST - (1:06)
Sat, 21 Apr, 2018 - (2:00)
Sat, 21 Apr, 2018 - (1:58)
Sat, 21 Apr, 2018 - (1:03)
Sat, 21 Apr, 2018 - (1:03)
Sat, 21 Apr, 2018 - (1:22)
Sat, 21 Apr, 2018 - (1:31)
Sat, 21 Apr, 2018 - (1:34)
Fri, 20 Apr, 2018 - (0:31)
Fri, 20 Apr, 2018 - (1:29)
Fri, 20 Apr, 2018 - (1:12)
Fri, 20 Apr, 2018 - (0:57)
Editors' Picks »
Fri, 20 Apr, 2018 - (1:24)
Fri, 20 Apr, 2018 - (2:04)
Thu, 19 Apr, 2018 - (0:57)
Thu, 19 Apr, 2018 - (1:45)
Tue, 17 Apr, 2018 - (2:44)
Tue, 17 Apr, 2018 - (2:15)
Mon, 16 Apr, 2018 - (1:59)
Sat, 14 Apr, 2018 - (1:09)
Sat, 14 Apr, 2018 - (2:15)
Sat, 14 Apr, 2018 - (1:40)
Most Popular »
Thu, 18 May, 2017 - (2:03)
Wed, 11 Jan, 2017 - (1:23)
Business »
7:31pm BST - (1:59)
Fri, 20 Apr, 2018 - (1:09)
Fri, 20 Apr, 2018 - (5:20)
Fri, 20 Apr, 2018 - (1:22)
Fri, 20 Apr, 2018 - (1:37)
Fri, 20 Apr, 2018 - (1:03)
Fri, 20 Apr, 2018 - (1:59)
Fri, 20 Apr, 2018 - (1:48)
Fri, 20 Apr, 2018 - (4:56)
Fri, 20 Apr, 2018 - (1:42)
Fri, 20 Apr, 2018 - (1:47)
Fri, 20 Apr, 2018 - (1:47)
Featured Videos
Luxury liner Queen Elizabeth II reopens as floating hotel
One of the world's most famous ships is now a floating hotel permanently moored at Dubai's Mina Rashid port
World Toad in the Hole Championships
The aim of the traditional pub game originating from France is to land as many large brass coins or 'toads' in a table's small hole
Tarantula burgers on the menu
For adventurous diners, tarantula topped burgers are available at a Durham, North Carolina restaurant as part of its ‘exotic meat’ month
Runners brave the cold for North Pole Marathon
Runners brave freezing conditions at top of the world in North Pole Marathon
UK firm turns discarded gum into shoes, coffee cups and combs
Chewing gum is a blight on city streets and takes a heavy toll on the environment, say its critics. But one woman in Britain is performing modern-day alchemy on it
Technology »
9:41am BST - (1:30)
Fri, 20 Apr, 2018 - (1:50)
Thu, 19 Apr, 2018 - (1:54)
Thu, 19 Apr, 2018 - (0:46)
Wed, 18 Apr, 2018 - (1:03)
Wed, 18 Apr, 2018 - (1:01)
Wed, 18 Apr, 2018 - (1:35)
Tue, 17 Apr, 2018 - (1:25)
Tue, 17 Apr, 2018 - (1:07)
Entertainment »
Sat, 21 Apr, 2018 - (1:24)
Sat, 21 Apr, 2018 - (0:59)
Fri, 20 Apr, 2018 - (0:46)
Fri, 20 Apr, 2018 - (1:31)
Fri, 20 Apr, 2018 - (2:10)
Fri, 20 Apr, 2018 - (0:49)
Thu, 19 Apr, 2018 - (1:19)
Thu, 19 Apr, 2018 - (1:27)
Thu, 19 Apr, 2018 - (1:28)
Thu, 19 Apr, 2018 - (1:36)
Sports And Leisure »
Fri, 20 Apr, 2018 - (1:08)
Thu, 19 Apr, 2018 - (2:22)
Thu, 19 Apr, 2018 - (0:48)
Thu, 19 Apr, 2018 - (1:19)
Wed, 18 Apr, 2018 - (3:00)
Wed, 18 Apr, 2018 - (1:30)
Tue, 17 Apr, 2018 - (1:23)
Mon, 16 Apr, 2018 - (2:02)
Mon, 16 Apr, 2018 - (2:55)
Fri, 13 Apr, 2018 - (0:52)
Oddly Enough »
Fri, 20 Apr, 2018 - (1:00)
Fri, 20 Apr, 2018 - (1:27)
Thu, 19 Apr, 2018 - (0:53)
Thu, 19 Apr, 2018 - (0:53)
Tue, 17 Apr, 2018 - (1:33)
Tue, 17 Apr, 2018 - (1:27)
Thu, 12 Apr, 2018 - (0:49)
Wed, 11 Apr, 2018 - (3:54)
Tue, 10 Apr, 2018 - (0:56)
Dateline Asia »
Tue, 05 Dec, 2017 - (2:06)
Tue, 05 Dec, 2017 - (2:11)
Fri, 01 Dec, 2017 - (2:04)
Thu, 30 Nov, 2017 - (2:10)
Thu, 30 Nov, 2017 - (2:14)
Wed, 29 Nov, 2017 - (2:11)
Tue, 28 Nov, 2017 - (1:55)
Tue, 28 Nov, 2017 - (2:21)
Mon, 27 Nov, 2017 - (2:25)
Fri, 24 Nov, 2017 - (2:16)
Fri, 24 Nov, 2017 - (2:14)
Thu, 23 Nov, 2017 - (2:18)