Shares of vintner Constellation Brands (STZ) are down 81 cents, or 5%, at $16.04 after the company this morning reported fiscal Q4 revenue below estimates and forecast this year’s profit below estimates.
The company said its board of directors authorized $300 million of share repurchases.
Net sales for the February-ending Q4 fell 4% to $709 million, missing analysts’ $733 million average estimate, while EPS of 27 cents managed to squeak by the average 24-cent estimate.
Sales fell in large part because the company divested itself of one of its wine operations — the “value” kind — offset by some currency exchange. Sales in North America fell 12% but rose 23% in Europe. The company cut inventory at N.A. distributors while it saw a rise in volume in Europe.
Total sales of beverages fell 19% for the quarter on an apples-to-apples basis.
For this year, the company sees EPS of $1.53 to $1.68, excluding some costs, below last year’s $1.69 per share and below the average estimate of $1.77.
Although the company had a “great year” in 2009, the outlook for 2011 reflects “an uncertain economic environment, continuing pressure on the Crown joint venture and the Australian and UK operations and incremental investments in marketing and new technology platforms,” said Rob Sands, president and CEO.
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