Constellation Brands up on upbeat quarterly results
BUZZ-Constellation Brands up on upbeat quarterly results Updates
** Shares of Constellation Brands STZ.N up as much as 3.96% at $120.25
** Co beat Q2 estimates for profit and sales on Tuesday, as resilient demand for its beer, such as Modelo Especial and Victoria, helped offset challenges facing the alcohol industry in a soft spending environment
** Co will pay $75 mln at closing for SpikedAde, a vodka-based ready-to-drink (RTD) brand, plus up to $278 mln over five years tied to the brand's performance and capital-allocation priorities
** "The SpikedAde acquisition could be interesting, although the brand and category are nascent"- J.P. Morgan
** BNP Paribas analyst Kevin Grundy says the acquisition gives new CEO Nick Fink an opportunity to demonstrate scaling of ‘growth areas'
** Co in its earnings call said if positive September trends continue, it expects to land at the high end of its outlook range
** Up to last day's close, the stock had fallen 16% YTD
(Reporting by Akriti Shah and Koyena Das in Bengaluru)
((akriti.shah@thomsonreuters.com ; X, formerly Twitter: @AkritiShahh))