Corona beer firm Constellation Brands sees second quarter results dented by big write-down in Canopy Growth investment
Constellation Brands Inc (NYSE:STZ) saw its shares drop on Thursday after the Corona and Modelo beers firm posted second quarter results dented by a big write-down from its investment in cannabis company Canopy Growth (CSE:WEED).
The NYSE-listed group took a $839 million write-down in the value of its investment in Canopy Growth during the quarter having invested more than $4 billion in the loss-making company as it banks on the benefits of planned legalization of recreational weed in several countries.
READ: There’s a thirst for cannabis-infused beverages but which way will the market flow?
The write-down took the froth of the brewer’s move to raise its adjusted fiscal 2019 earnings forecast, excluding the Canopy costs, to a $9.00 to $9.20 per share range, up from the previous range of $8.65 to $8.95 per share.
However, Constellation chopped its fiscal 2020 earnings per share estimate on a reported basis to a $0.55 to $0.75 range, down from the $4.95 to $5.25 range forecast previously.
In its second quarter ended August 31, 2019, excluding one-time items, Constellation earned $2.72 per share, above analysts’ estimates for $2.60 per share.
The firm’s net sales in the quarter rose to $2.34 billion from $2.30 billion, in line with the consensus estimate, while sales of beers – its biggest business – increased by around 7.4% to $1.64 billion.
In afternoon trade in New York, Constellation’s shares were 5.2% lower at $195.90.
Contact the author at [email protected]
Story by ProactiveInvestors
Source: https://www.proactiveinvestors.com/companies/news/904137/corona-beer-firm-constellation-brands-sees-second-quarter-results-dented-by-big-write-down-in-canopy-growth-investment-904137.html
Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.
"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.
Please Help Support BeforeitsNews by trying our Natural Health Products below!
Order by Phone at 888-809-8385 or online at https://mitocopper.com M - F 9am to 5pm EST
Order by Phone at 866-388-7003 or online at https://www.herbanomic.com M - F 9am to 5pm EST
Order by Phone at 866-388-7003 or online at https://www.herbanomics.com M - F 9am to 5pm EST
Humic & Fulvic Trace Minerals Complex - Nature's most important supplement! Vivid Dreams again!
HNEX HydroNano EXtracellular Water - Improve immune system health and reduce inflammation.
Ultimate Clinical Potency Curcumin - Natural pain relief, reduce inflammation and so much more.
MitoCopper - Bioavailable Copper destroys pathogens and gives you more energy. (See Blood Video)
Oxy Powder - Natural Colon Cleanser! Cleans out toxic buildup with oxygen!
Nascent Iodine - Promotes detoxification, mental focus and thyroid health.
Smart Meter Cover - Reduces Smart Meter radiation by 96%! (See Video).