The company beat Wall Street’s profit expectations for the ninth straight quarter, thanks to higher margins. On Thursday, it also boosted its full-year earnings forecast to between $8.25 and $8.40 per share from $7.90 and $8.10 per share.
Constellation’s stock has skyrocketed about 36 percent this year. It gained 4 percent on Thursday.
Constellation’s growth comes as some big brewers’ sales have struggled thanks to consumers’ thirst turning toward craft beer. On a call with investors, CEO Rob Sands credited Constellation for driving growth in U.S. beer imports.
“So it’s a little bit of a misnomer to think that the growth in the beer category, to the extent that there is any, is coming from imports. It is not. It is coming from Constellation’s portfolio of Mexican beers. And then there is also growth coming from the craft segment and that’s about it,” Sands said.
During the quarter, Constellation boosted TV and digital advertising for Corona Extra, Sands said. Corona Extra was the official beer sponsor for the much-hyped Floyd Mayweather and Conor McGregor fight.
Constellation also launched a limited-edition can packaging, which the CEO said helped grow Corona’s can format more than 20 percent
Sands said the company’s beer portfolio is well-positioned for the second half of the year. Aside from Corona, Constellation’s beers include brands like Modelo, Pacifico and Funky Buddha, a craft beer it acquired last month.
The holidays present a big opportunity for the alcohol industry. Constellation’s portfolio includes wine and spirits brands such as Black Box, Woodbridge by Robert Mondavi and Robert Mondavi Private Selection wines, and SVEDKA.
