Constellation Brands falls after lowering margin forecast
BUZZ-Constellation Brands falls after lowering margin forecast ** Shares of Constellation Brands STZ.N fall nearly 5% to $110.11 premarket
** Corona beer maker lowers its annual operating margin forecast to between 31% and 32%, from its prior forecast of 32% to 33%
** Co beat Q2 estimates for profit and sales on Tuesday, as resilient demand for its beer such as Modelo Especial and Victoria helped offset challenges facing the alcohol industry in a soft spending environment
** J.P. Morgan says F2Q27 profit and loss (P&L) was mostly as anticipated; focus is likely to be on management’s outlook for Beer top-line/operating margins in F2H27 and implications for FY28
** Co will pay $75 mln at closing for SpikedAde, vodka-based ready-to-drink (RTD) brand, plus up to $278 mln over five years tied to the brand's performance and capital-allocation priorities
** "The SpikedAde acquisition could be interesting, although the brand and category are nascent "- J.P. Morgan
** Up to last day's close, the stock had fallen 16% YTD
(Reporting by Akriti Shah in Bengaluru)
((akriti.shah@thomsonreuters.com ; X, formerly Twitter: @AkritiShahh))