STZ Posts Better-Than-Expected Q1 Earnings, Raises 2011 Forecasts

Constellation Brands Inc STZ, the world's leading wine company, reported better-than-expected earnings for the first quarter. The company has also raised its full-year forecast. The Victor, New York-based company posted its net income for the quarter at 49.1 million, or $0.22 per share, up from $6.5 million, or $0.03 per share, in the year-ago period. STZ’s earnings rose due to favorable tax rate. Excluding one-time items, the company’s net income came in at $0.38 per share, which exceeded the consensus expectations of $0.35 a share. The maker of Robert Mondavi wine and Svedka vodka reported a fall in its sales to $976.2 million, from $1.00 billion in the tear-ago quarter. Constellation Brands has raised its earnings forecast for the fiscal year 2011 to $1.63 to $1.78 per share, up from $1.53 to $1.68 per share. The company has raised its forecasts to reflect an accelerated share buyback transaction. According to Rob Sands, president and chief executive officer of Constellation Brands, “The first quarter represents a solid start to the year." He added, "We are on track to achieve our strategic and financial goals, the most important of which is to drive profitable organic growth. While macroeconomic and competitive challenges persist, we are encouraged by improving market trends in our U.S. wine and beer businesses." STZ’s shares rose 1.23% to close at $15.62 yesterday. Read more from Benzinga's Company news.