Originally published at www.seclive.com
Constellation Brands Inc. (NYSE:STZ) announced its financial results for the first quarter of fiscal year 2014, reporting earnings of $1.5B. The company closed its largest deal in June with Anheuser Busch InBev NV (NYSE:BUD), paying $5.3B for U.S. distribution rights for Corona and some other Mexican beers. Upon completion of the transaction, Constellation became the third-largest beer supplier to the United States. Constellation reported earnings this quarter of $1.52B, or $7.74 per share, up from $124.6B or $0.67 per share a year ago. The stark contrast is explained by a $1.6B asset gain and had this been excluded, earnings per share would have been up from $0.71 to $0.96. Gross margin slipped slightly from 40.8% to 39.5% while wine and spirits volume increased 1.8% and beer volume increased 1.1%.
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