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Constellation Brands Inc. (STZ) announced its financial results for the first quarter of fiscal year 2014, reporting earnings of $1.5B. The company closed its largest deal in June with Anheuser Busch InBev NV (BUD), paying $5.3B for U.S. distribution rights for Corona and some other Mexican beers. Upon completion of the transaction, Constellation became the third-largest beer supplier to the United States. Constellation reported earnings this quarter of $1.52B, or $7.74 per share, up from $124.6B or $0.67 per share a year ago. The stark contrast is explained by a $1.6B asset gain and had this been excluded, earnings per share would have been up from $0.71 to $0.96. Gross margin slipped slightly from 40.8% to 39.5% while wine and spirits volume increased 1.8% and beer volume increased 1.1%.
Conflicted here. Chart looks weak today; I half want to hang in there that it is a false sell signal and half think it isn't. Should have jumped out at the high but thought it would at least hold water and go higher. Not sure just how much the government problems are affecting this either. I'm sure with all the drunks we have in there it should skyrocket, but that's another matter entirely.