Shares of Constellation Brands Inc. (NYSE: STZ), a leading premium wine company, are up sharply in trading today following the release of second-quarter financial results.
For he second quarter of fiscal 2013, STZ reported consolidated net sales of $699 million, representing an increase of 1% over the same period in the previous year. GAAP operating income for the quarter was $131 million, down 10% over the same period in the previous year. On a non-GAAP basis, the company reported operating income of $141 million, down 5% over the same period in the previous year.
STZâ€™s non-GAAP operating margin for the quarter was 20.1%. GAAP operating margin for the quarter came in at 18.7%.
STZ reported GAAP net income of $125 million for the second quarter, down 23% over the same period in the previous year. On a non-GAAP basis, the company reported net income of $131 million, down 21% over the same period in the previous year. GAAP diluted earnings per share fell 12% to $0.67. Non-GAAP diluted earnings per share fell 8% to $0.71.
Rob Sands, President and CEO of Constellation Brands, said that as STZ executes its profitable, organic growth strategy, the company is encouraged by the strength of its core beer, wine and spirits businesses including the success of its new product introductions and innovation pipeline across its entire portfolio of outstanding brands. Sands said that STZ remains excited about the prospect of owning 100% of Crown Imports, which represents a transformational step for the company as it will solidify its position in the U.S. beer industry for the long term.
STZ shares rose to a 52-week high of $36.50 in trading today. At last check, the stock was trading 3.77% higher at $36.03 on above average volume of 3.27 million.
Year-to-date, STZ shares have gained more than 75%, outperforming the S&P 500.