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Constellation Brands cuts EPS guidance for full year as it counts cost of Canopy Growth investment

The New York-headquartered group said it expects to earn between $9.20 and $9.30 per share for its 2019 fiscal year

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Constellation imports brands such as Corona Extra, Corona Light, Modelo Especial, Modelo Negra and Pacific

Constellation Brands Inc (NYSE:STZ) shares sank over 12% before the New York bell as the big brewing group posted an outlook for the year which missed expectations, dented by higher interest expenses.

The New York-headquartered group said it expects to earn between $9.20 and $9.30 per share for its 2019 fiscal year on an adjusted basis, while scribes on Wall Street had expected $9.43 per share.

READ: CryptoCann™ Report: Nasdaq wins patent for blockchain newswire service; Constellation may sell off wine brands to focus on cannabis

Last quarter, it predicted earnings per share (EPS) of between $9.60 to $9.75 for the fiscal year.

Elsewhere, for the third quarter, the firm posted a beat. Net income came in at $303.1 million, or $1.56 per share.

Excluding items, Constellation earned $2.37 per share for the three months, beating the $2.06 per share expected by analysts.

Constellation is the third-biggest beer company in the U.S. and has imported brands such as Corona Extra, Corona Light, Modelo Especial, Modelo Negra and Pacific.

In November, the firm invested $4 billion into cannabis firm Canopy Growth, financing it with debt, and the interest expense is set to take 25% off EPS for the year, according to the firm.

Shares shed 12.09% to $172.34.

 

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