Global alcohol middleweight Constellation Brands (
) reported higher than expected quarterly revenue and earnings
this morning, taking the Street by surprise, despite the Street's
already optimistic outlook for the company. It turned out that
few people knew exactly
well things were going for the company, which nearly doubled its
revenue from the year-ago-quarter to $1.53 billion.
What is driving the success?
. Beer sales were up 14% from last quarter, and the company
thinks things will get even better as it moves into the summer
months, as their now most important beer, Corona, has always been
marketed as the most summery of beers. As a longtime bull on
Constellation Brands, I've been continuously impressed by the
company's ability to market their beers by targeting the right
people in the right markets, and doing it in the right way.
For Constellation Brands, acquiring Corona from Anheuser Bush
) at a fire sale price back in 2013 tuned out to be one of its
best decisions ever. Corona is still popular, still growing, and
still avoiding the negative stigma attached to many other
mass-marketed beers, making Constellation one of the most
exciting companies in the industry in years.
STZ stock has more than tripled in value in the past two
years. Shares are trading at $90.60 right now, up 2.3% on the
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