By Dhirendra Tripathi
Investing.com – Constellation Brands stock (NYSE: STZ ) was volatile in Wednesday’s premarket trading as the company took a hit on its second-quarter earnings because of the divestiture of some of its wine and spirit brands.
The stock slipped as the company disclosed its June to August performance but recouped all the losses.
Wine and spirits shipment volume fell more than 36% while organic shipments rose nearly 6%. Beer volumes were strong and rose nearly 12%, led by Modelo Especial and Corona Extra.
The volume and the net sales the divested brands brought in during last year’s second quarter were 4.6 million (9-liter case equivalents) and $181 million, respectively.
President and Chief Executive Officer Bill Newlands said consumer demand for its big brands remained strong and was the reason behind its revised guidance.
Constellation Brands now sees its comparable basis EPS outlook at a midpoint of $10.30 compared to $10.15 previously.
Net sales in the second quarter rose 5% to $2.37 billion. EPS fell short of expectations as profit was a negligible $1.5 million compared to $512.1 million in the second quarter of last year.
Add Chart to Comment
We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
- Enrich the conversation
- Stay focused and on track. Only post material that’s relevant to the topic being discussed.
- Be respectful. Even negative opinions can be framed positively and diplomatically.
- Use standard writing style. Include punctuation and upper and lower cases.
- NOTE: Spam and/or promotional messages and links within a comment will be removed
- Avoid profanity, slander or personal attacks directed at an author or another user.
- Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
- Only English comments will be allowed.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.