Constellation Brands: shares down after mixed quarter

(CercleFinance.com) - Constellation Brands returned to profit in the third quarter, saying that it would buy back 3 billion dollars worth of its own shares, although this failed to boost the share price of the wine and spirits company in pre-market trading.


The firm, one of the best performers among S&P 500 Consumer Staples index last year, also raised its earnings forecast for the full-year ending February.

The distributor of Corona Extra and Modelo Especial said net income reached 494.7 million dollars, in the fiscal quarter that ended in November, compared to a loss of 88.5 million dollars a year earlier.

However, Constellation's quarterly net sales dipped 1% to 1.8 billion dollars, hurt by the divestiture of its Canadian wine business.

As a result, the shares were down 3.5% in pre-market trading.

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