Constellation Brands Remains Sharply Lower After Initial Drop

(RTTNews) - After gapping open sharply lower, shares of Constellation Brands, Inc. (STZ) continue to see substantial weakness in late-day trading on Wednesday. Constellation Brands is currently down by 12.3 percent after hitting its lowest intraday level in almost two years.

The initial sell-off by Constellation Brands came after the producer and marketer of beer, wine and spirits reported fiscal third quarter results that exceeded analyst estimates but lowered its full-year earnings guidance.

Constellation Brands reported third quarter adjusted earnings of $2.37 per share on net sales of $1.97 billion, while analysts had expected earnings of $2.06 per share on sales of $1.91 billion.

However, the company forecast full-year adjusted earnings of $9.20 to $9.30 per share compared to its previous guidance for earnings of $9.60 to $9.75 per share.

Constellation Brands said its latest guidance includes costs related to its investment in Canadian cannabis producer Canopy Growth Corp.