Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Why Shares of Constellation Brands Inc. Popped

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Constellation Brands (NYSE: STZ  ) were headed for the stars today, gaining as much as 12% and finishing up 10% on an impressive third-quarter earnings report.

So what: The distributor of alcohol brands including Negro Modelo and Svedka Vodka soared past estimates in its quarterly report this morning, posting earnings of $1.10 on expectations of $0.91, while revenue increased 88.2% to $1.44 billion, above the analysts' view at $1.39 billion. Constellation said nearly all of the increase came from its consolidation of Crown Imports that it achieved in a deal last June with Anheuser Busch-InBev. The company also raised its full-year EPS outlook to $3.10-$3.20, above expectations of $3.00.

Now what: The purchase of Grupo Modelo's distribution rights continues to pay dividends for Constellation, as the stock has now more than doubled in the past year. With a strong portfolio of brands, perpetual U.S distribution rights for Grupo Modelo products, and 21% top-line growth expected in fiscal 2015, the company should continue to see its shares move higher.

More stocks for maximum growth
Constellation Brands isn't the only stock that's soaring above the clouds these days. Motley Fool co-founder David Gardner has become expert in sniffing out stocks with returns like 926%, 2,239%, and 4,371%. In fact, just recently one of his favorite stocks became a 100-bagger. And he's ready to do it again. You can uncover his scientific approach to crushing the market and his carefully chosen six picks for ultimate growth instantly, because he's making this premium report free for you today. Click here now for access.

Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2788517, ~/Articles/ArticleHandler.aspx, 9/3/2015 7:03:12 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Jeremy Bowman

Fool since 2011. I write about consumer goods, the big picture, and whatever else piques my interest. Follow me on Twitter to see my latest articles, and for commentary on hot topics in retail and the broad market.

Today's Market

updated 9 hours ago Sponsored by:
DOW 16,351.38 293.03 1.82%
S&P 500 1,948.86 35.01 1.83%
NASD 4,749.98 113.87 2.46%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/2/2015 4:01 PM
STZ $129.00 Up +1.28 +1.00%
Constellation Bran… CAPS Rating: ****