Shares in Constellation Brands tumbled 12 percent Thursday after the New York wine and spirits giant reported a weak outlook for the coming year.
The company reported $628.1 million in net sales for its fiscal fourth quarter, down 12 percent from the previous quarter, due primarily to the divestiture of its Australian and U.K. wine business.
But Constellation also noted that a favorable product mix and volume growth helped boost its North American net sales by 5 percent.
The Victor, N.Y., company lost its eight-year status as the world's No. 1 winemaker last year when it offloaded 80 percent of a once-promising Australian wine business. On the North Coast, Constellation owns Robert Mondavi Winery, Clos du Bois, Ravenswood and Simi.
For the three months ended Feb. 29, Constellation earned $103 million, or 51 cents per share, down from $279.8 million, or $1.32 per share, a year ago.
For fiscal 2013, Constellation expects to report net income of $1.89 to $1.99 as a result of stock repurchases and interest expenses. Analysts had expected $2.24 per share.
Constellation shares closed at $21.61, down $3.08 on the New York Stock Exchange.