Constellation Brands (STZ) Up 10% in premarket, Q2 Beats Estimates

Constellation Brands (NYSE: STZ) reported fiscal Q2 EPS of 54 cents, topping consensus estimates of 41 cents. Revenues for the second quarter fell 8% to $876.8 million, but ahead of consensus estimates of $834.2 million. Constellation Brands expects fiscal year 2010 EPS of $1.60 - $1.70 vs. consensus estimates of $1.63.

"The macroeconomic environment remains challenging but we are beginning to see some signs of stabilization," said Rob Sands, President and Chief Executive Officer of Constellation Brands. "Powered by a strong portfolio of brands which includes Robert Mondavi, Ravenswood, Blackstone, Kim Crawford and SVEDKA, we believe we have the right strategies in place to organically grow the business. We intend to continue to reduce borrowings, improve free cash flow and optimize return on invested capital. Our expectations for the full year remain unchanged."

Shares of Constellation Brands are trading higher about 10% at $16.69 in premarket trading.