Constellation Brands' stock plunges after earnings beat, but profit outlook slashed
Shares of Constellation Brands Inc. sank 12% toward a near 2-year low in premarket trade Wednesday, after beer, wine and spirits company reported fiscal third-quarter earnings and revenue that beat expectations, but slashed its full-year profit outlook. The company, which brands include Corona, Robert Mondavi and Svedka Vodka, said net income for the quarter to Nov. 30 fell to $303.1 million, or $1.56 per Class A share, from $492.8 million, or $2.45 a share, in the same period a year ago. Earnings per share on a comparable basis was $2.37, above the FacdtSet consensus of $2.06. Sales rose 9% to $1.97 billion, above the FactSet consensus of $1.91 billion. Beer sales grew 16% to $1.21 billion, above the FactSet consensus of $1.16 billion, and wine and spirits sales rose 0.4% to $762.8 million to top expectations of $747.8 million. For 2019, the company cut its comparable EPS guidance range to $9.20 to $9.30 from $9.60 to $9.75. It said beer sales are expected to be at the high end of the previously provided guidance of 9% to 11%, but wine and spirits sales and operating income are now expected to decline in the low single-digit percentage range, compared with previous guidance of 2% to 4% growth. The stock has declined 22.4% over the past 12 months through Tuesday, while the S&P 500 has shed 6.4%. Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.