The Buzz
All markets and investing news all the time

Tim West, Size 5.5, suede, color block, knee-hi 5.5, Tim boots, color vintage awesomeness 56881e5




Tim West, Size 5.5, suede, color block, knee-hi 5.5, Tim boots, color vintage awesomeness 56881e5 - hollisbaker.com

Americans love Corona, but is it paying off for investors? April 9, 2014: 11:06 AM ET
Tim West, Size 5.5, suede, color block, knee-hi 5.5, Tim boots, color vintage awesomeness 56881e5
Tim West, Size 5.5, suede, color block, knee-hi 5.5, Tim boots, color vintage awesomeness 56881e5 - hollisbaker.com

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%.

Tim West, Size 5.5, suede, color block, knee-hi 5.5, Tim boots, color vintage awesomeness 56881e5

Now who needs a lime?

Join the Conversation
Follow CNNMoneyInvest
Fear & Greed
Sponsored by
Tim West, Size 5.5, suede, color block, knee-hi 5.5, Tim boots, color vintage awesomeness 56881e5 - hollisbaker.com
About This Author
Tim West, Size 5.5, suede, color block, knee-hi 5.5, Tim boots, color vintage awesomeness 56881e5 - hollisbaker.com
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
Contributors
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
 
Kamik Womens Size 7 Fashion Rain boots Dark Brown Nice Rubber Soles , Aerosole Central Ave Boots Booties 8M BrownColumbia Cascadian Summit Gray/Black Boots' Size 8NEW WOMENS ANDIAMO SAND RODEO BOOTS SHOES SIZE 9.5M 9.5 M , A NEW DAY Target Velvet Floral Peacock Ankle Boots Heels Women’s Size 8.5BRAND NEW WOMENS DARK BROWN ANDIAMO SANDIE BOOTIES BOOTS SIZE 6W 6 WVince Camuto "Daysha" Black Suede Leather Round Toe Wedge Booties 8 BAmerican Eagle High Boots Size 6 Womens Black , NEW WOMENS BIJOU BLACK KWON BOOTS SIZE 6 MVintage Town And Country Brown Suede Short Boots Women’s Size 8Ralph Lauren brown knee high boots size 7.5 womens , DONNER MOUNTAIN BLACK INSULATEDONNER MOUNTAIN BLACK INSULATED WINTER BOOTS 9 M , Vera Wang 4" Spike Heeled Buckle Fur Lined Black Ankle Boot 7 M OLIVIAGuess Womens Black Leather Size 7.5 Boots Knee Length WORN HEELS , Talbots Black Genuine Leather Brazilian Heeled Ankle Bootie- Size 9.5NSplendid Dale Suede Ankle Black Boots Women's Shoes Size 8.5 M , Reaction by Kenneth Cole YEE HA Leather Fashion Ankle Booties Brown Size 10 MG by Guess Women's Boots Size 8 Black Mid-Calf Faux Leather Military Style , ESNY Women's Brown Faux Suede Boots Size 8M , enzo angiolini 9-1/2 M Black Leather Womens Boots , NEW WOMENS SIZE 7.5 M ULTRA CHIC TAN SCROLL WORK BOOTS by MONROE & MAIN$99 Women's Vera Wang Simply Vera Kasia Rhinestone Moto Boots Grey smoke 6.5So Kohls Mid Calf Zipboots Heels Womens Size 7Eddie Bauer Womens Shoes Duck Rain Hunting Low Cut Made in USA Size 5Women's cowboy western style boots Size 4 Brown Cat & JackWomen's Fashion Ankle Boots Almond Toe Low Heels Buckle Zip Booties Side Zipper , Clarks Soul of Africa Ankle Booties 9 Slate Gray , Italian designer MAX De CARLO SHOE BOOTS Size 8 Brown Made in ItalyNEW WOMENS SEVENTH AVENUE WAVE PATCHWORK BOOTS SIZE 6M 6 M ,
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 Antonio Melani Womens Red Suede Ankle Boots Size 9 M , womens 9.5 M Hillard & Hanson knee high tall black leather riding boots pointy , NEW Lady Godiva Joan Women's Slouch Boots - Brown - Size: 9Denim Distressed Knee High Peeptoe BootsChic Women's Embroidered Chelsea Ankle Boots Block Heels Casual Shoes Plus SizeNot Rated Womens Aadila Closed Toe Ankle Fashion Boots, Tan, Size 7.5 d0Fkwomens 9.5 10 sz 40 Dansko Aurora Black Kid Suede Leather Tall Slouch Boots Clog , (SALE) BCBGMAXAZRIA suede heel boots Size US 6.5(K-22208) , Carlos by Carlos Santana Womens Camdyn Closed Toe Knee High, Black, Size 9.0 nTTAriat Women's Fatbaby Cowgirl Boot - Distressed BrownNew Clarks BRYNN CELIA Suede Women Boots Size 10 , Vintage Cowboy Western BOOTS Dan Post Womens 7 Beige Tan Leather TALL , ASH Womens Boots 10 EU41 Black Leather Wedge Zip Fringe Top Lined Knee High , Women's Studio By Four Seasons Nita Shoes Black Leather Ankle Boots Size 8 MClarks Muckers Black Leather Waterproof Zip Ankle Boots 31161 Women’s Size 7.5 , Auth MARNI Black/Brown/Beige Leather Elastic Side Heeled Ankle Boots Shoes Sz 37Vionic Women's Capitola Navy Sheep Nappa Sandal , BIRKENSTOCK Boston BROWN Soft Footbed LEATHER MSRP $140 Narrow US 10 , WOMEN'S BADGLEY MISCHKA BLACK PATENT LEATHER RHINESTONES FLATS LOAFERS 10 M , FRYE Sienna Embroidery Ballet US 7 Women's Slip on Shoes MSRP $257.95 NIB , LANVIN Shoes 667802 Black 36TOD'S dark Blue LEATHER SLIP ON PENNY LOAFERS FLATS SHOES SZ 36.6 , Josef Seibel Women's Pippa 07 Ballet Flat, Black, 40 EU/9-9.5 M USNew Balance Womens Wx66bk Black/Silver Running Shoes Size 8.5 (417816) , New Balance 896 Athletic Sneakers, Women's - Size 9 D, White , Mens Slip on Leather Oxford Casual Slipper Business Loafer Shoes Loafer , New Gabor ballerina flat style54161-69 size 6.5US , Tory Burch Quinn Quilted Ballerina Flat, Newpert Navy Size 9 1/5Womens Handmade Pearls Bow Knot Canvas Sneakers Wedding Bridal White Shoes F201 , Women's Dyeables Women's Fiesta Sandal Flats
 
University of Phoenix is the latest college under investigation
 
Latest Buzz Videos
See all videos
Tim West, Size 5.5, suede, color block, knee-hi 5.5, Tim boots, color vintage awesomeness 56881e5 Boots
783997
2547506
2962107
5493196
6790610
11118866
11502155
11860821
12202070
Powered by WordPress.com VIP.