Shares of wine and beer importer Constellation Brands (STZ) - Get Report rose on Wednesday after the company reported better-than-expected fiscal third-quarter earnings, even as it posted another loss related to its investment in Canadian pot company Canopy Growth (CGC) - Get Report.
The numbers included a $71.1 million loss related to the company’s investment in Canopy Growth, which has taken a chunk out of Constellation Brands’ bottom line in recent quarters amid an ongoing drop in demand for legalized marijuana and related products.
Excluding that 25-cent-a-share hit, the company would have posted earnings of $2.14 a share. Sales came in at $1.99 billion vs. $1.97 billion a year ago, in line with analysts’ estimates. The company generated $2.1 billion in operating cash flow and $1.5 billion in free cash flow.
Constellation Brands now expects per-share earnings of between 95 cents and $1.05 for the fourth quarter, or $9.45-$9.55 a share on a year-over-year basis. The company is now projecting operating cash flow of approximately $2.3 billion and free cash flow of between $1.5 billion and $1.6 billion.
Shares of Constellation Brands were up 1.09%, or $2.01 a share, at $185.61 in morning trading on Wednesday. Shares of Canopy Growth, meantime, were down 2.22%, or 44 cents a share, at $19.35 on the New York Stock Exchange.