The Buzz
All markets and investing news all the time

Skechers Womens Slouch Shelbys-Helsinki 48477 48477 Slouch Snow Skechers Boot Shoe 2edaa5c

Skechers Womens Slouch Shelbys-Helsinki 48477 48477 Slouch Snow Skechers Boot Shoe 2edaa5c -

Americans love Corona, but is it paying off for investors? April 9, 2014: 11:06 AM ET
Skechers Womens Slouch Shelbys-Helsinki 48477 48477 Slouch Snow Skechers Boot Shoe 2edaa5c
Skechers Womens Slouch Shelbys-Helsinki 48477 48477 Slouch Snow Skechers Boot Shoe 2edaa5c -

The beer trade has been a good one for Constellation.

Bottoms up! Constellation is cashing in on America's love affair with Corona.

Shares of Constellation Brands (STZ) opened sharply higher Wednesday after the beer and wine company reported strong quarterly results, although the stock has now fallen back.

The buzz kill came after Constellation executives said on a conference call with analysts that the cost of expanding a brewery in Mexico would be much higher than previously expected.

The company raised its estimate for the cost of upgrading its Nava brewery to a range between $900 million and $1.1 billion, up from the previous estimate of between $500 million to $600 million. So far, Constellation has spent about $140 million on the brewery.

Robert Ryder, Constellation's chief financial officer, tried to put a positive spin on the news.

"Despite the increased cost to build out the brewery, our improved commercial results should keep our cash flow and delivering goals intact," he said.

Constellation said net income surged 92% in the fourth quarter to $157 million, or 79 cents per share. Analysts were expecting the company to report earnings of 76 cents per share, according to FactSet.

Corona is the best-selling imported beer in the United States, according to Constellation CEO Rob Sands.

Sales rose to nearly $1.3 billion, thanks largely to about $600 million from Crown, the division that distributes Modelo brand beers, including Corona, in the United States.

"We had a great year, driven by our beer business," Sands told analysts on a conference call today.

Constellation paid $5.3 billion to take full control of Crown last year as part of a complex deal between Anheuser-Busch InBev (BUD) and Mexico's Grupo Modelo.

The deal was held up in court after the U.S. government sued to block it over anti-competitive concerns. But regulators relented after AB InBev and Modelo gave Constellation "perpetual rights" to distribute the popular Corona beer in the U.S. market and tossed in a major Modelo brewery.

Related: Why six-packs are pricier in some markets

So far, Constellation's bet on Mexican beer is paying off.

Net sales in the beer segment rose 13% in the fourth quarter " due to volume growth driven by strong consumer demand," the company's report states.

The strength in beer helped offset softness in sales of wine and spirits, which grew only 1% in the quarter.

Constellation expects beer sales to continue growing in its current fiscal year and is looking for income to grow "in the low to mid 20 percent range."

That should lead to better-than-expected earnings. Constellation is now targeting earnings of between $3.75 to $3.95 per share for the full year, which would translate to earnings growth of up to 27%.

Skechers Womens Slouch Shelbys-Helsinki 48477 48477 Slouch Snow Skechers Boot Shoe 2edaa5c

Now who needs a lime?

Join the Conversation
Follow CNNMoneyInvest
Fear & Greed
Sponsored by
Skechers Womens Slouch Shelbys-Helsinki 48477 48477 Slouch Snow Skechers Boot Shoe 2edaa5c -
About This Author
Skechers Womens Slouch Shelbys-Helsinki 48477 48477 Slouch Snow Skechers Boot Shoe 2edaa5c -
Ben Rooney
Staff writer, CNNMoney

Ben Rooney is a staff writer for CNNMoney. He covers the European debt crisis and other international finance stories, in addition to writing about stocks, bonds, investing and other Wall Street-related news. Follow Ben on Twitter: @ben_rooney

To view my watchlist

Not a member yet?

Sign up now for a free account
Stupid Stock Move of the Day
#StupidStock Move of the Day! Yes, Urban Outfitters may be finally turnings things around. But $URBN up 17%? Seems a bit excessive, no?
Most Popular
You won the $1.5 billion Powerball! Here's your tax bill
Zara Red Ankle Boots With Stunts Size 40Korean Style Women's PVC Rain Shoes Anti Slip Rain Boots Middle GaloshesBare Traps Tommy Tan Brown Wide Calf Buckle Detail Riding Boot New , Sam Edelman Tinsley Rain Boot 11 Women's Black Ankle BootsDR. MARTENS WOMEN'S 10984 STEEL TOE BOOTS BROWN LEATHER 7 MEDIUM 5 UK $135 , SPORTO NEW Womens Black Natasha Snow, Winter Boots Shoes 5.5M TEDO , HARLEY DAVIDSON Motorcycle Ankle Boots STARTER SWITCH 82016 Black Moto Leather 8 , Womens Over The Knee High Ladies Cut Out Leg Top Flat Heel Riding Biker Boots , Refresh Black / Tan Women's Hunter 01 Winter Snow Boots Size 6-10New Dollhouse Attention Cowgirl western Cowboy Chunky Heels Knee High Boots , Stuart Weitzman Womens Black Leather Studded Ankle Biker Boots Size 7.5 Medium , New Women's GAP Boots - Black - Size 10 - NWT , New Lowa Womens Renegade GTX Waterproof Leather Hiking Outdoor Mid Boots Sz 5.5Womens Jack Rogers Chloe Boot in Midnight size 8 , Valerie Stevens Women's Italy Black Leather Tall Riding Equestrian Boots Size 7M , Steve Madden Womens Haydun Taupe Knee-High Boots 9.5 Medium (B,M) BHFO 4728MARE Washed Leather Ankle Boots Size 39 / High Heel Made in Italy , Isabel Marant Womens Green Suede Brown Leather Ankle Boots Size 37NEW PIER ONE WOMEN'S SHOES FALL WINTER SHORT BOOTS BROWN US 7.5LifeStride Women's Smirk Dark Tan Ankle Boots - Size 8.5 Wide34c NEW Rag & Bone Harrow Hazel Suede Block Heel Booties Women's Sz 35 MWomen's Forever Link Shine 7 Black Mid Calf Boots Multiple Sizes Brand New , Womens Over The Knee Studded Sole Flat Ladies Stretch Calf Thigh High Boots Size , Chic Sweet Women Platform Block Heels Bowknot Sexy Stilettos Ankle Knight Boots , FRYE Vintage VERONICA Short Boots BLACK LEATHER Mid Calf Moto 76509 Womens Sz 6 , Women Ladies winter warm woolen Creeper wedge heel Snow Boot , Jennifer Lopez Womens Hidden Wedge Ankle Boots Size 9 & 10 NewAquatalia Italy Brown Weather Proof Winter Boot w/Faux Fur- New w/o Box size 10Womens Over The Knee High Flat Ladies Long Faux Suede Thigh High Boots Size 3-8 ,
Powerball winner can stay anonymous, judge rules
Counterfeit goods market is booming and becoming more dangerous
Kodak ditches digital cameras, will focus on photo printing ZITA MARIA Tan Brown Leather Mid Calf Boots Size 36 EUR Made in Italy , KOOBA BLACK EMBOSSED CUT-OUT DETAILED "AMILA " ANKLE BOOTS NEW SZ 6MMadden Girl by Steve Madden Womens Campus Riding Boots 8.5 Medium (B,M) 6821Tory Burch Brown Suede Gold Logo Booties 9.5Michael Antonio Women's Piper Boot, Taupe, Size 8.0 , Isaac Mizrahi Kayln Dark Brown Suede Wedge Ankle Boot NEWWOMENS VINTAGE TALL RENEGADE WING TIP LEATHER COWBOY WESTERN BOOTS SZ 5.5~1/2 B , Donald Pliner Peace for the Children Mid Calf Boot Buckles Strap Stitching 8 , Sanuk Nice Bootah Women's Boots Grey Arrowooly Size 6Jimmy Choo London Black Leather Boots Women’s Sz 6.5/36.5 Pull On High HeelMarco Tozzi 25406 Women's Boots, Ankle Boots, Boots taupe NEW , Nine West Women's Noney Pony Slip-ONS - Choose SZ/Color , ORANGE TORY BURCH JELLY FLATS SIZE 10 , Mephisto EMILIE Womens Emilie Ballet Flat- Choose SZ/Color. , PRADA Logo Slide Sandal - NEW SIZE US 8.5Dolce & Gabbana White Coco Patent Leather Mary Jane Flats sz 10 / $1200 , NWOB Diadora N-6100-3 Women's Running Shoe black gray silver Size 7 USSperry Top Sider Women's LAURA Driving ShoeDansko Womens Fashion Sneaker /7.5-- Select SZ/Color. , women's pull on breathable flat heel sneaker sport shoes casual oxford shoes newDr. Scholl's Women's Friendly Ballet Flat - Choose SZ/Color , Stuart Weitzman New Bolshoi Beige Womens Shoes Size 10 M Flats MSRP $375 , NIB Tory Burch Minnie Embellished Flats Sz 7 Rose Blush Leather NEWBIRKENSTOCK NEW 2018FW BLACK SHOES NARROW FIT WOMEN RFSO8F514BKSteve Madden Women's Harber Ankle Bootie , Women's Tory Burch Flats Flats , Women's Esprit Womens Cameron-E Boots , Columbia Sierra Flurry Womens 8.5/ 39.5 Snow Boots Winter Boots Thermolite a6iDansko Men's Black Box Leather Professional ClogsMizuno Women's Wave Rider 21 Running Shoe
University of Phoenix is the latest college under investigation
Latest Buzz Videos
See all videos
Skechers Womens Slouch Shelbys-Helsinki 48477 48477 Slouch Snow Skechers Boot Shoe 2edaa5c Boots
Powered by VIP.