Constellation sees Q3 wine & spirits net sales growth flattish to down slightly
Says acquisition of High West Distillery to bolster position in spirits category. Targeting EBIT growth for beer business in high teens range, driving operating margin of 35%-36% in FY17 vs. previous margin expectation of about 35%. Says Meiomi "on track" to achieve 1M case mark this year. Says California grape harvest over 60% complete, expected to be completed in November; says crop up this year vs. last. Expects grape pricing to increase "slightly" vs. last year. Expects wine and spirits net sales growth to be flattish to down slightly in Q3. Sees FY17 effective tax rate about 29%. Says CapEx tracking below original plan, cuts FY17 view to $1.25B-$1.122B. Sees FY free cash flow $375M-$475M. Comments taken from the Q2 earnings conference call. Constellation Brands is up 1.75% to $168.75 in morning trading.