Shares of Constellation Brands Inc., the world’s largest wine company, sank the most in more than five years after the company forecast full-year profit that was less than analysts estimated.
Constellation tumbled 12 percent to $21.61 at the close in New York, the steepest decline since March 1, 2007. The shares have risen 4.5 percent this year.
Comparable earnings per share may be $1.93 to $2.03, the Victor, New York-based maker of Simply Naked and Black Box wines said Thursday in a statement. Analysts projected profit of $2.23, the average of 12 estimates in a Bloomberg survey.
Chief Executive Officer Rob Sands is investing in Constellation’s sales operations and promoting its brands. Sands said today in the statement that those initiatives that may temper profit growth while U.S. sales of wine and spirits will grow in line with the market.
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