Shares in Constellation Brands Inc (NYSE:STZ), the U.S. wine and spirits distributor, jumped close to 4% in pre-market trading Thursday after the group reported robust fourth-quarter results, driven higher by strong sales of its Modelo, Pacifico and Corona beers and favorable U.S. tax changes.
In pre-market trade, shares in Constellation jumped 3.6% to US$220.49 as the group reported that its net income soared to US$925.5mln in the three months ending on Feb. 28, or US$4.64 per share, up from US$450.2mln, or US$2.26 per share, in the year-ago period.
READ: Corona owner Constellation Brands reveals 21% rise in quarterly profit
The group also announced a quarterly dividend of US$0.74 per share would be paid to the holders of its class A shares and US$0.67 will be paid to holders of its Class B stock.
U.S. tax reforms introduced late last year also pushed up Constellation’s earnings, as they resulted in a US$363mln gain in the quarter. Excluding one-time items like the tax gain, Constellation’s earnings for the quarter came to US$1.90, beating analysts’ forecasts by 15 US cents. Its sales looked particularly robust, climbing 8.5% in the quarter from a year ago to US$1.77bln.
Based in Victor, New York, Constellation is the third-largest beer company in the United States and produces Corona Extra, Corona Light, Modelo Especial, Modelo Negra and Pacifico. It also has wines and spirits in its portfolio such as Robert Mondavi, Ruffino and Kim Crawford as well as SVEDKA Vodka and Casa Noble Tequila.
To ramp up revenues, the group is introducing new lines of beers, and Corona Premier is poised for a launch across the United States in the first fiscal quarter of 2019, helped by television advertising.