Constellation Brands stock hits 52-week high

By Erin Smith

Published: 12 March, 2014

Constellation Brands hit a 52-week high on the New York Stock Exchange this week, closing at US$84.33 per share, indicating investors faith in the company's ability to continue to deliver strong financial results, following strong third quarter results in January.

Constellation Brands (NYSE:STZ) hit a 52-week high on the New York Stock Exchange this week, closing at US$84.33 per share, indicating investors faith in the company's ability to continue to deliver strong financial results, following strong third quarter results in January.

In anticipation of the strong earnings and performance and just after the release of the third quarter financials, the company's stock rose 18% in January and since then has continued to climb, showing an increase in the stock's price to 21.2% increase year to date. Earnings per share also exceeded expectations of US$0.91 coming in at US$1.10 EPS, which was a rise of 74.6% year over year.

Two major contributions to Constellation's success have been a committed focus on brand building and widening the company's portfolio of products as well as investing in the strategic acquisition of Grupo Modelo SAB beer business. The acquisition of Grupo Modelo cost Constellation approximately USD $4.75 billion, included the full ownership of Crown Imports US beer business which includes brands Corona Extra, Corona Light, Modelo Especial, Negra Modelo, Pacifico and Victoria from Mexico and Tsingtao from China.

Constellation Brands expects fiscal 2014 adjusted earnings to be in the range of $3.10-$3.20 per share, exceeding the $2.80-$3.10 earlier expectation. The company closed its financial year ending February 28, 2014.

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