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Many corporations opened their books on Friday, June the 29th. Constellation Brands, KB Home and Finish Line all reported their quarterly results which triggered enthusiasm among investors. The following is a brief review of the most important facts pertaining to their reports.

Constellation Brands (STZ) the wine company and marketer of imported beers rose an incredible 24.4% on Friday after reporting its first quarter results of its fiscal year of 2013. Constellation reported a net income of $76 million for the first quarter, or $0.38 per diluted share. Net sales came in at $635 million. "The first quarter results were generally in line with our expectations" according to CEO Brands. For the full year of its fiscal 2013 the company expects to earn between $1.89 and $1.99 per diluted share. The first quarter results were not the highlight of the day, as Constellation announced two acquisitions today.

Constellation will acquire the remaining 50% stake in Crown Imports from Grupo Modelo for $1.85 billion. Grupo Modelo, which will be acquired by Anheuser-Busch, will sell its stake in the joint venture which imports popular beers including Corona at 8.5 times EBIT. Crown Imports generated $2.47 billion in annual revenues for 2012 and Constellation expects to close the deal in the first quarter of 2013.

Furthermore the company will acquire Mark West, the Californian pinot noir which annually sells over 600,000 cases. The $160 million acquisition of this top pinot noir brand is expected to close in July of this year. As a result of the acquisitions Constellation with postpone the execution of its share repurchase program which still has $700 million under authorization. A bridge financing has already been arranged to finance the completion of both deals in the short term. Investors are pleased with the two deals which will boost the growth profile of Constellation Brands at a fair price. As a result of today's jump shares are up 31% so far in 2012, approaching all time highs around $30 set in 2005.

KB Home (KBH) on of the largest homebuilding companies of the country reported its second quarter results on Friday. The company reported an 11% increase in net revenues to $303 million. KB Home sold 1,290 homes which was up 2% on the year. The average selling price rose 9% to $233,000. As a result of the growing revenues the company managed to narrow its net loss to $24 million, or $0.31 per diluted share. This compares to a net loss of $68 million, or $0.89 per diluted share in 2011. A strong sign was also the increase in order intake over the last quarter. KB Home received $503 million in new orders during the quarter which increased the backlog to 2,962 homes representing a value of $693 million.

Investors are positively surprised by narrowing losses and a strong backlog. Shares in KB Home rose more than 12% today to almost $10 per share which was a welcome break for investors who saw their shares fall from $14 in March to lows of $7 in May. Including Friday's gains shares in KB Home have returned 46% in 2012.

Finish Line (FINL) the specialty retailer for athletic shoes, apparel and accessories reported strong first quarter results for its fiscal year of 2013. Finish Line reported a 6.5% increase in net revenues to $319 million, driven by a 8.0% growth in comparable sales for its Finish Line business. Comparable sales growth was mostly driven by a 28% increase in digital sales. Net profits came in at $12.2 million, down from $16.4 million last year as a result of lower gross margins and increasing selling, general & administrative costs. Earnings per share fell to $0.24 compared to $0.30 last year. CEO Lyon of Finish Line points out that the company is still in the early stages of its transformation phase towards more online offerings and a greater connection with its consumers. For the full year of 2013 Finish Line now anticipates a 6-7% increase in earnings per share compared to 2012's annual earnings of $1.53. Comparable store sales growth are expected to come in between 5-6%.

Investors react favorable to the earnings report sending shares almost 12% higher on the day. Shares still trade 20% below their levels by the end of April when the company warned for lower profitability in the first quarter of 2013. The strong guidance for 2013 is reassuring to investors who feared the long term growth story of Finish Line might be impacted by slower consumer spending.

Source: Important Earnings Announcements From Friday, June 29