Constellation Brands shares up 3.5% premarket after earnings beat

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Constellation Brands Inc. shares rose 3.5% in premarket trade Thursday, after the company beat estimates for its fiscal third quarter. The company posted net income of $1.281 billion, or $6.55 a share, in the quarter to Nov. 30, up from $360.4 million, or $1.85 a share, in the year-earlier period. Adjusted per-share earnings came to $3.09, while excluding equity losses from its investment in Canadian cannabis company Canopy Growth Corp. , it had EPS of $3.16. Sales rose to $2.438 billion from $1.999 billion. The FactSet consensus was for EPS of $2.42 and sales of $2.234 billion. Chief Executive Bill Newlands said the company’s business performance improved in the quarter, despite the headwinds of the coronavirus pandemic. Beer depleted growth accelerated, while inventory levels improved, and the wine and spirits business grew faster that the higher end of the U.S. segment. The company is now expecting adjusted fiscal 2021 EPS to range from $9.80 to $10.05. Its board approved a new $2 billion share buyback program. Shares have gained 22% in the last 12 months, while the S&P 500 has gained 15%.
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