Company News

BUZZ-Constellation Brands: Tumbles as Canopy Growth investment hits FY profit forecast

** Corona beer maker Constellation Brands Inc shares down ~13 pct at $151.30 premarket

** FY adj profit forecast cut due to higher freight costs and expenses related to its $4 bln investment in pot maker Canopy Growth Corp

** STZ top loser among S&P 500 components trading premarket and at $151.30, stock set to open at its lowest in nearly 2 yrs

** Company sees FY adj EPS to be between $9.20-$9.30 vs prev forecast of $9.60-$9.75 due to a $55 mln interest expense related to its Canopy Growth investment

** In August, Constellation pumped over $4 bln into Canada’s top cannabis producer Canopy Growth to capitalize on booming demand for marijuana

** The company continues to evaluate the potential equity in earnings impact from the Canopy Growth investment and related items - Constellation

** Company’s Q3 operating margin also fell 60 basis points to 37.3 pct on higher freight and marketing costs

** Up to Tuesday’s close, stock had fallen 20.5 pct in the last 12 months (Reporting by Aishwarya Venugopal in Bengaluru)