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