Constellation Brands swings to a profit, adj. 2022 view beats target

Constellation Brands Inc. shares rose 1% in premarket trades Thursday after it said its first-quarter net income increased to $389.5 million, or $2.06 a share, from a loss of $908.1 million, or $4.74 a share, in the year-ago quarter. Adjusted profit was $2.90 a share excluding losses of 24 cents a share from its investment in cannabis company Canopy Growth Corp. . Sales at the wine, spirits and beer maker rose to $2.36 billion from $2.03 billion. Analysts expected Constellation Brands to earn $2.52 a share on revenue of $2.17 billion, according to FactSet data. Looking ahead, Constellation Brands expects adjusted 2022 profit of $11.20 to $11.50 a share, compared to the analyst view of $11.08 a share. Constellation booked a GAAP loss of $165 million for Canopy Growth in the quarter and said it’s recognized a $556 million unrealized net loss since its initial Canopy investment in Canopy in November, 2017.

Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.