For the quarter ended Aug. 31 the Victor, N.Y., liquor producer reported net income of $512.1 million, or $2.62 per Class A share, compared with a loss of $525.2 million, or $2.77, in the year-earlier quarter.
The latest adjusted earnings of $2.76 a share exceeded the consensus analyst expectation of $2.51 a share in a survey by FactSet.
Net sales for the period fell 3.6% to $2.26 billion, also topping the analyst estimate of $2.19 billion.
“We remain confident in the resiliency of our business, our brand health and consumer takeaway remain strong, and we are well positioned to deliver a solid year of organic growth in fiscal 2021,” Chief Executive Bill Newlands said in a statement.
Constellation reported that its operating margin widened 0.7 percentage point in the quarter to 42.5%, “as benefits from favorable pricing and reduced marketing spend were partially offset by increased cost of goods sold.”
Constellation’s beer business reported almost 5% growth in cases sold by distributors to retailers. A “strong performance in off-premise channels continues to more than offset the covid-19-related impact of the nearly 50% reduction in the on-premise channel,” the company statement said.
In the beer segment, its Modelo and Pacifico brands reported cases-sold growth of 9% and almost 30%, respectively.
Constellation Class A shares at last check were 0.3% higher at $190.