Corona Beer Maker Constellation's Quarterly Profit Misses Estimates
Constellation Brands Inc. on Friday reported a lower-than-expected quarterly profit due to higher marketing and transportation costs, leading the Corona beer maker to maintain its full-year earnings forecast that missed estimates.
The company's shares fell 5% in premarket trading.
Constellation said higher freight costs, rising dollar and increased marketing hit first-quarter operating margin of its beer business by 230 basis points at 37.8%.
The company said marketing expenses rose 1.1% as it had to make upfront investments to promote its new beers, Corona Premier and Corona Familiar.
The maker of Robert Mondavi wine and Svedka vodka reaffirmed its full-year earnings forecast of $9.40 to $9.70 per share, well under analysts' estimate of $9.73, according to Thomson Reuters I/B/E/S.
Net income attributable to the company rose to $743.8 million, or $3.77 per Class A share, in the first quarter ended May 31, from $398.5 million, or $1.98 per share, a year earlier.
Excluding items, the company earned $2.20 per share, missing analysts' average estimate of $2.43.
Net sales rose 6% to $2.05 billion.