Constellation Brands: Outlook Leaves Shareholders With A Hangover
Constellation Brands: Outlook Leaves Shareholders With A Hangover
Apr 8, 2012 6
(Seekingalpha) - Shares of wine producer Constellation Brands (STZ) fell 12.5% on Thursday after the outlook for its fiscal year of 2013 came in below analyst expectations.
Fourth Quarter Results
The company reported fourth quarter revenues of $628 million, down 12% on the year. Net income fell 63% to $103 million, or $0.51 per share. Sales fell primarily due to the divestment of the Australian and UK's wine business. Earnings did slightly beat expectations on a favorable outcome of some tax items, which led to a negative tax rate.
"We believe our marketplace momentum positions us to grow in-line with the US wine and spirits category in fiscal 2013," according to CEO Sands. EBIT growth for 2013 will stay behind revenue growth on increased sales and brand investments. For 2013 Constellation expects to earn $1.93-$2.03 per share vs. $2.34 for the entire year of 2012.
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