Constellation Brands Stock Reverses Lower Despite Surprise Earnings Gain

---

Constellation Brands (STZ), the parent of Corona, reported fiscal second-quarter earnings early Thursday that unexpectedly rose slightly vs. a year earlier. Constellation Brands stock fell.

Constellation Brands Earnings

Estimates: Wall Street expects Constellation Brands earnings to fall 8% to $2.51 per share. Analysts expect revenue to fall 6% to $2.2 billion.

Results: Constellation Brands earnings edged up to $2.76 a share vs. $2.72 a year earlier. Revenue fell 3% to $2.26 billion.

Beer sales were flat at $1.64 billion but growth in off-premise consumption continued to more than offset on-premise declines due to coronavirus-related restrictions on bars and restaurants.

Wine and spirits sales fell 11% to $624.5 million amid asset sales, though higher-end brands saw double-digit growth.

Losses from Constellation's equity stake in Canadian cannabis producer Canopy Growth (CGC), which has been losing money, were $31 million on a reported basis vs. $377.6 million in fiscal Q1.

Stock: Shares fell 2.6% to 184.61 on the stock market today. Shares are working on a 198.07 buy point.

By: Bill Peters
Source: investors.com
October 1, 2020