Constellation Brands loss diminishes as sales exceed estimates

Brands Constellation Inc. STZ,
+ 0.69%
announced on Wednesday that it recorded a net loss of $ 908.1 million, or $ 4.74 per share, in its first fiscal quarter ended May 31, less than the loss of $ 177.9 million, or 94 cents per share, recorded during the period of the previous year. Adjusted earnings per share were $ 2.33, while earnings excluding its stake in Canadian cannabis company Canopy Growth Corp. CGC,
-2.25%
CANNABIS,
-1.92%
came to $ 2.51. The FactSet consensus was $ 2.35. Sales reached $ 2.027 billion from $ 1.963 billion a year ago, beating the FactSet consensus of $ 2.021 billion. Sales growth was driven by Meiomi wine, The Prisoner Brand Family, Simi, Ruffino and High West, the company said in a statement. Managing Director Bill Newlands said the beer business saw double-digit net sales and profit growth, while the wine business was poised to deliver accelerated growth and profitability. The company said it now expects EPS for fiscal 2022 to be between $ 2.70 and $ 3.00 and adjusted EPS to be between $ 10.00 and $ 10.30. . The FactSet consensus is $ 10.06. It plans to repurchase about $ 500 million of its own shares in the second quarter, after repurchasing 2.2 million shares for $ 523 million until June 30. Shares were slightly higher pre-market and gained 5% in the year to date, while the S&P 500 SPX,
+ 0.03%
gained 14%.