Constellation Brands Inc. beat analyst EPS estimates and posted year-over-year growth in the fiscal second quarter of 2019.
For the fiscal second quarter ended Aug. 31, the company reported comparable, or non-GAAP, net income attributable to Constellation Brands of $562.2 million, a jump from the $499.2 million in the prior-year period.
EPS on a comparable, non-GAAP basis rose 16% year over year to $2.87. Analysts expected $2.61, according to the mean consensus estimate for normalized EPS compiled on S&P Global Market Intelligence.
Constellation Brands also said it plans an "additional" $4 billion investment in cannabis company Canopy Growth Corp. Constellation Brands expects that transaction to close at the end of October.
"Our $4 billion investment in Canopy Growth provides us with a strong foothold in the emerging cannabis market, which could be one of the most significant growth opportunities of the next decade," Constellation Brands CEO Robert Sands said in the earnings release.
Constellation Brands boosted its full-year fiscal 2019 guidance. The company now expects EPS on a reported basis of $14.10 to $14.25 and EPS on a comparable basis from $9.60 to $9.75, pending additional investment in Canopy. The company previously anticipated EPS on a reported basis of $10.93 to $11.23 and EPS on a comparable basis of $9.40 to $9.70.
For the fiscal second quarter, Constellation Brands recorded net sales of $2.30 billion on a reported basis, a 10% jump year over year from $2.09 billion. Operating income on a reported basis hit $765.0 million, a 7% rise from the $717.3 million in the same quarter last year.