Constellation Brands Inc (STZ)

[mkendra]

Constellation Brands beats by $0.29, reports revs in-line; raises FY20 EPS above consensus
Reports Q2 (Aug) earnings of $2.91 per share, excluding non-recurring items and Canopy Growth''s (CGC) equity losses, $0.29 better than the S&P Capital IQ Consensus of $2.62; revenues rose 2.0% year/year to $2.34 bln vs the $2.34 bln S&P Capital IQ Consensus.
Constellation''s share of Canopy Growth''s equity losses and related activities for second quarter fiscal 2020 totaled a loss of $484.4 mln, including the impact from the June 2019 warrant modification, on a reported basis and a loss of $54.7 mln on a comparable basis.
Co issues raised guidance for FY20, sees EPS of $9.00-9.20 from $8.65-8.95 vs. $8.51 S&P Capital IQ Consensus. FY20 guidance details: Beer: net sales and operating income growth 7 - 9%. Wine and Spirits: net sales decline 15 - 20% and operating income decline of approximately 25 %.