Constellation Brands shares pop 2.6% premarket after earnings blow past estimates

Constellation Brands Inc. shares STZ, -1.45% rose 2.6% in premarket trade Thursday, after the drinks company blew past estimates for its fiscal second quarter. The company posted a net loss of $1.151 billion, or $6.30 a share, for the quarter to Aug. 31, after earnings of $1.5 million, or 1 cent a share, in the year-earlier period. Adjusted per-share earnings came to $3.17, well ahead of the $2.82 FactSet consensus. Sales rose to $2.655 billion from $2.371 billion a year ago, also ahead of the $2.508 billion FactSet consensus. Excluding the company’s take in Canadian cannabis company Canopy Growth Corp. CGC, +22.15% WEED, +23.44%, the company had $3.33 in per-share earnings. The company said its beer business achieved double-digit sales, driven by Modelo Especial and Corona Extra. The wine and spirits business saw growth driven by U.S. shipment volume growth and a strong performance by fine wine and craft spirts in international markets. Constellation is now expecting fiscal 2023 EPS of 75 cents to $1.15. It expects adjusted EPS to range from $11.20 to $11.60, up from prior guidance of $11.20 to $11.50. Earlier, the company said it’s selling part of its mainstream and premium wine business to The Wine Group. Shares have fallen 6% in the year to date, while the S&P 500 SPX, -1.02% has fallen 21%.