(CB) - Shares of beer and wine maker Constellation Brands rose nearly 5 per cent on Thursday after reporting fiscal third-quarter results that beat expectations and raised its earnings outlook for the year.

The company also said it would build a new brewery in Mexicali, Mexico as demand for imported Mexican beer remains strong. Constellation owns Corona, Negra Modelo and Pacifico beers.

“Today’s third quarter results continue to reflect positively for the future of Constellation’s beer segment,” wrote Citi analyst Wendy Nicholson. But she added “we stand by our assertion that the stock is relatively expensive at its current valuation and we maintain our Neutral rating.”

On a per-share basis, the Victor, New York-based company said it earned $1.33. Earnings, adjusted for non-recurring costs, came to $1.42 per share.

The results exceeded Wall Street expectations. The average estimate of seven analysts surveyed by Zacks Investment Research was for earnings of $1.29 per share.

The wine, liquor and beer company posted revenue of $1.64 billion in the period, also beating Street forecasts. Three analysts surveyed by Zacks expected $1.62 billion.

Constellation Brands expects full-year earnings in the range of $5.30 to $5.40 per share.