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Constellation Brands Slips As Lower EPS Guidance Overshadows Q4 Results

Published 04/08/2021, 09:02 AM
Updated 04/08/2021, 09:03 AM
© Reuters.

By Dhirendra Tripathi

Investing.com – Constellation Brands (NYSE:STZ) fell 3.5% Thursday as the company’s earnings guidance for fiscal year 2022 came in lower than that of last year.

The maker of Corona beer and Cooper Thief wine expects its 2022 earnings per share to be between $9.95 and $10.25. The 2021 number was $10.44. The figures exclude a contribution from its equity in cannabis company Canopy Growth (NASDAQ:CGC) Corp (TSX:WEED).

In an announcement that only added to uncertainty, the company said its guidance does not reflect future changes in the fair value of its investment in Canopy’s warrants and convertible debt securities.

The 2022 forecast weighed news of the company’s robust performance in the last quarter ending February.   

Constellation Brands announced earnings per share of $1.82 on revenue of $1.95 billion. Analysts polled by Investing.com anticipated EPS of $1.55 on revenue of $1.86 billion.

Of the company’s planned capital expenditure of $1 billion to $1.1 billion, as much as $900 million could go to its plan to expand beet operations in Mexico.

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