Shares of Constellation Brands Inc. hiked up 2.9% in premarket trading Wednesday, after the company reported fiscal first-quarter adjusted profit and sales that beat expectations, as better-than-expected wine and spirit sales offset a miss in beer sales. The net loss for the quarter to May 31 narrowed to $177.9 million, or 94 cents per Class A share, from $245.4 million, or $1.30 a share, in the year-ago period. Excluding non-recurring items, such as restructuring charges and other business development costs, adjusted earnings per share came to $2.30, or $2.44 if losses from its investment in Canopy Growth Corp. are excluded. The FactSet consensus was for EPS of $1.99. Sales fell 6% to $1.96 billion, just above the FactSet consensus of $1.94 billion. Beer sales fell 4% to $1.38 billion, shy of the FactSet consensus of $1.41 billion, while wine and spirits sales declined 4% to $579.3 million but topped expectations of $570.7 million. The company, which brands include Corona, Robert Mondavi and SVEDKA Vodka, said beer production in Mexico has returned to "normal" levels in June, following COVID-19 pandemic-related disruptions. Earlier, the company announced the acquisition of "digitally-native" Empathy Wines. The stock has lost 7.8% year to date through Tuesday, while the S&P 500 has slipped 4.0%. Read More...
Shares of Constellation Brands Inc. hiked up 2.9% in premarket trading Wednesday, after the company reported fiscal first-quarter adjusted profit and sales that beat expectations, as better-than-expected wine and spirit sales offset a miss in beer sales. The net loss for the quarter to May 31 narrowed to $177.9 million, or 94 cents per Class A share, from $245.4 million, or $1.30 a share, in the year-ago period. Excluding non-recurring items, such as restructuring charges and other business development costs, adjusted earnings per share came to $2.30, or $2.44 if losses from its investment in Canopy Growth Corp. are excluded. The FactSet consensus was for EPS of $1.99. Sales fell 6% to $1.96 billion, just above the FactSet consensus of $1.94 billion. Beer sales fell 4% to $1.38 billion, shy of the FactSet consensus of $1.41 billion, while wine and spirits sales declined 4% to $579.3 million but topped expectations of $570.7 million. The company, which brands include Corona, Robert Mondavi and SVEDKA Vodka, said beer production in Mexico has returned to “normal” levels in June, following COVID-19 pandemic-related disruptions. Earlier, the company announced the acquisition of “digitally-native” Empathy Wines. The stock has lost 7.8% year to date through Tuesday, while the S&P 500 has slipped 4.0%.
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