(Reuters) - Beer and wine maker Constellation Brands Inc (N:STZ) reported a higher-than-expected quarterly profit, but investors remained jittery about President-elect Donald Trump's proposals to tighten cross-border trade.
Shares of Constellation, which makes most of its beer in three plants in Mexico and imports them to the United States, fell as much as 8.9 percent to $144.
Analysts did not pinpoint a reason for the drop in shares, but flagged concerns about the tax policies of the new Trump administration.
Trump's comments on building a wall between Mexico and the United States and his proposal of abandoning the North American Free Trade Agreement in favor of higher taxes on imports have raised concerns among investors.
The company had previously announced plans to expand its breweries in Nava, its biggest, and Mexicali. It also recently invested in a brewery in Obregon.
There is a high level of investor skittishness around the stock due to potential tax changes from the new administration, SunTrust Robinson Humphrey analyst William Chappell, Jr wrote in note.
Constellation also raised its adjusted profit forecast to $6.55-$6.65 per share for the year ending February, from $6.30-$6.45 it had previously expected.
Beer sales rose 16 percent on higher volumes and pricing, and a boost from its acquisition of craft beer maker Ballast Point last year.
The Victor, New York-based company's sales rose 10.3 percent to $1.81 billion, in-line with the average analysts' estimate, according to Thomson Reuters I/B/E/S.
Net income attributable to the company rose to $405.9 million, or $1.98 per class A share in the third quarter ended Nov. 30, from $270.5 million, or $1.33 per share, a year earlier.
Excluding certain items, the company earned $1.96 per share. Analysts on average had expected $1.72 per share.