Constellation Brands Inc. (STZ – Free Report) delivered robust third-quarter fiscal 2018 results, wherein both the top and bottom line topped estimates and improved year over year. Notably, this marked the 13th consecutive quarter of earnings beat for the company. Further, to inspire investors’ confidence management raised earnings guidance for fiscal 2018.

However, shares of Constellation Brands declined nearly 2% in the pre-market trading session primarily due to lower-than-expected sales performance. Overall, this Zacks Rank #2 (Buy) stock surged 51.1% in the past year, outperforming the industry’s 23.4% growth.

During the quarter, Constellation Brands benefited from efforts to drive consumer demand for its robust brand portfolio. Further, results were driven by contributions from acquisitions along with continued strength in the company’s beer business in particular.

Q3 Highlights

The company’s adjusted earnings for third-quarter fiscal 2018 rose 2% year over year to $2.00 per share, surpassing the Zacks Consensus Estimate of $1.87. Reported earnings came in at $2.44 per share, up 23% year over year.

Constellation Brands Inc Price, Consensus and EPS Surprise

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Net sales dipped 0.6% to $1,799.1 million and lagged the Zacks Consensus Estimate of $1,863 million. However, organic sales grew 5%.

Sales at the company’s beer business improved 7.8%, driven by 5.9% rise in shipment volumes and depletions growth of 9.1%. The beer business also gained from strong portfolio performance and share gains for the Modelo brand family, with depletions growth of 17%. Further, beer sales benefited from market share gains in United States during the Labor Day and Thanksgiving holidays. During the quarter, the U.S. shipment volume lagged depletion volumes, mainly due to the timing.

Wine and spirits’ sales fell 10.3%, due to lower shipment volumes and 2.5% decline in depletions. Organic sales for the segment rose 0.3%. Notably, the company’s recently acquired wine brands — The Prisoner, Meiomi, and Charles Smith wine brands, reported superb depletions growth of 21%, 14% and 89%, respectively. Moreover, the High West Whiskey portfolio delivered depletions growth of 28%.