Constellation Brands Inc. shares
slipped 4% in trading on the premarket Thursday, after the Corona beer distributor swung to a loss for fiscal second quarter. The company said it had a net loss of $ 525.2 million, or $ 2.52 per share, in the quarter to August 31, after revenue of $ 1.149.5 billion, or $ 5.41 per share, the previous year. The company said its share of share losses and related activities from the $ 4 billion investment in Canadian cannabis company Canopy Growth Corp.
CGC, + 0.69%
WEED, + 1
came to $ 484.4 million, while recognizing $ 46 million in cost-cutting fees. Adjusted earnings per share were $ 2.72, ahead of the $ 2.63 FactSet consensus. Sales increased by 2% to $ 2.344 billion, in line with the FactSet consensus. Beer sales rose to $ 1.640 billion from $ 1.527 billion. Wine and spirits sales fell to $ 703.6 million from $ 772.0 million. The company said it now expects fiscal 2020 EPS of 55 cents to 75 cents and adjusted EPS of $ 9.00 to $ 9.20. The current FactSet consensus is for fiscal 2020 adj. EPS of $ 8.56. Shares gained 28.6% in 2019, while the S&P 500
has gained 15.2%.