Constellation Brands’ Q1 Earnings Preview

Constellation Brands, Inc. (NYSE:STZ) is a leading beverage alcohol company with a diverse portfolio that includes beer, wine, and spirits. Despite reporting earnings per share of $3.22 on July 1, 2025, which was slightly below the estimated $3.31, the company has shown resilience in its operations. The reported revenue of approximately $2.52 billion also fell short of the estimated $2.55 billion.

Interestingly, STZ's stock price increased by nearly 5% on the day following the earnings report, significantly outperforming the S&P 500's modest rise of under 0.5%, as highlighted by The Motley Fool. This surge occurred despite the company reporting a double miss in its earnings. The beer segment, which is the largest product category for STZ, experienced only slight decreases in both volume and sales, contributing to the company's robust performance.

For the first quarter of fiscal 2026, Constellation Brands reported net sales of just under $2.52 billion, a decline from $2.66 billion in the same period the previous year. The non-GAAP adjusted net profit fell by 12% year over year, reaching nearly $573 million, or $3.22 per share. Analysts had anticipated better results, with expectations set at $2.56 billion for net sales and $3.41 for adjusted profitability.

Despite the slight dip in overall sales, Constellation Brands has maintained impressive gross margins in its beer segment. This financial strength, along with cost efficiencies, has enabled the company to reaffirm its full-year guidance. Bank of America Securities analyst Peter T. Galbo has maintained a Neutral rating on STZ, with a price forecast of $180, noting stronger-than-expected beer gross margins and reduced SG&A costs.

Constellation Brands' financial metrics reflect its market valuation and operational efficiency. The company has a price-to-sales ratio of approximately 3 and an enterprise value to sales ratio of about 4.14. The enterprise value to operating cash flow ratio is around 13.44, indicating cash flow efficiency. With a debt-to-equity ratio of approximately 1.59 and a current ratio of about 1.07, STZ demonstrates a moderate level of debt and the ability to cover short-term liabilities.

• Constellation Brands Inc (NYSE:STZ) reports a 2% decline in beer sales, significantly impacted by reduced spending from Hispanic consumers.
• The company maintains its full-year guidance, supported by strong gross margins in its beer segment and reduced SG&A costs.
• Despite current challenges, STZ's stock price remains resilient, with a slight decrease of 0.73% today, reflecting its robust market position.

Constellation Brands Inc (NYSE:STZ), renowned for its popular beer brands like Corona and Modelo, is navigating through a challenging phase in its beer sales. On July 7, 2025, Cowen & Co. maintained a Hold rating for STZ, with the stock priced at $171.45. This rating underscores the company's resilience amidst various economic pressures.

The company recently disclosed a 2% decline in beer sales, primarily attributed to diminished spending by Hispanic consumers. This demographic, accounting for about half of Constellation's US beer sales, is curtailing social activities due to increased US Immigration and Customs Enforcement (ICE) deportations and economic concerns. CEO Bill Newlands highlighted that these factors are significantly influencing consumer behavior, thereby impacting beer consumption.

Despite these hurdles, Constellation Brands has successfully maintained its full-year guidance, buoyed by strong gross margins in its beer segment. The company reported fiscal first-quarter earnings per share of $3.22, slightly below the consensus estimate of $3.30 but above Bank of America Securities' estimate of $3.00. This performance was bolstered by better-than-expected beer gross margins and reduced selling, general, and administrative (SG&A) costs.

The company's stock, currently priced at $171.06, has observed a slight decrease of 0.73% today. Over the past year, STZ has seen a high of $264.45 and a low of $159.35, with a market capitalization of approximately $30.26 billion. Despite the recent dip in sales, Constellation Brands remains a formidable entity in the beverage industry, adeptly navigating through economic and political challenges.

Constellation Brands (NYSE:STZ) shares rose more than 3% intra-day today after the company reported weaker-than-expected first-quarter earnings but reiterated its full-year profit guidance, underscoring confidence in strong beer demand to offset rising tariff-related costs.

For the quarter, net earnings attributable to common shareholders fell to $3.22 per share, missing analysts’ average estimate of $3.41. Net sales climbed 6% year-over-year to $2.52 billion but came in below the $2.56 billion consensus forecast.

Despite the earnings shortfall, Constellation maintained its fiscal 2026 earnings outlook of $12.60 to $12.90 per share, in line with analysts’ average projection of $12.65. Management highlighted robust consumer demand for flagship Modelo Especial and Corona brands as key drivers expected to sustain growth.

The company’s guidance incorporates the expected impact of U.S. tariffs on steel and aluminum—critical materials for beer packaging—which remain in place following delays in broader reciprocal tariff measures announced earlier this year. Constellation also flagged potential headwinds from Canadian duties imposed in March, which could weigh on its wine and spirits segment.

Constellation Brands, Inc. (NYSE:STZ) is a prominent player in the Beverages - Alcohol industry, known for its popular brands like Corona and Modelo. The company recently reported its fiscal first-quarter results for 2025, which did not meet analysts' expectations. The earnings per share (EPS) came in at $3.22, slightly below the estimated $3.31, and the revenue was approximately $2.52 billion, missing the forecasted $2.55 billion.

The reported EPS of $3.22 also fell short of the Zacks Consensus Estimate of $3.34, marking a decline from the $3.57 per share reported in the same quarter last year. This resulted in an earnings surprise of -3.59%. In contrast, the previous quarter saw a positive surprise of 15.35% with earnings of $2.63 per share against an anticipated $2.28. Over the past four quarters, Constellation Brands has surpassed consensus EPS estimates twice.

Revenue for the quarter ending May 2025 was $2.52 billion, which was 2.07% below the Zacks Consensus Estimate and a 6% decrease from the $2.66 billion reported a year ago. The decline in sales is attributed to weaker consumer demand, as highlighted by CEO Bill Newlands, who pointed to non-structural socioeconomic factors. Despite these challenges, Constellation Brands maintained its full-year earnings forecast of $12.60 to $12.90 per share, with Wall Street analysts predicting $12.84.

The company's profitability has been impacted by increased aluminum tariffs, which have raised concerns about the demand for its beer. The tariffs on canned beer imports and aluminum, which were raised to 25% in mid-March and further to 50% in early June, have posed significant challenges. Despite these setbacks, Constellation Brands remains optimistic about its future, reiterating its forecast for fiscal 2026.

Financially, Constellation Brands has a price-to-sales ratio of approximately 2.88 and an enterprise value to sales ratio of about 4.06. The enterprise value to operating cash flow ratio is around 13.16, and the debt-to-equity ratio is approximately 1.76, indicating a higher level of debt compared to equity. The current ratio is about 0.92, suggesting slightly less current assets than current liabilities. 

Constellation Brands, Inc. (NYSE:STZ) is a leading alcohol manufacturer known for its popular brands like Modelo Especial, Corona Extra, and Robert Mondavi. The company operates in the beverage industry, focusing on beer, wine, and spirits. Despite its strong beer segment, Constellation Brands faces challenges such as growth stagnation and tariff headwinds, impacting its stock performance.

Over the past year, Constellation Brands has experienced a downward revision in its consensus price target. Last year, the average price target was $271.45, but it has since decreased to $207.33 last month. This trend suggests that analysts have adjusted their outlook due to factors like market conditions and company performance.

As Constellation Brands prepares to announce its Q1 earnings, expectations indicate declines in both earnings and sales. Analysts predict an earnings per share (EPS) of $3.33 and revenue of $2.56 billion, representing a 31% drop in earnings and a 4% decrease in sales compared to the previous year. Despite these anticipated declines, Barclays analyst Lauren Lieberman has set a price target of $281, indicating a positive outlook.

The company's beer segment remains a primary growth driver, with strength in premium offerings. However, the wine and spirits divisions are experiencing double-digit revenue declines. This mixed performance has led to a Hold rating from Barclays, as the company faces ongoing macroeconomic and consumer headwinds.

Investors are closely watching Constellation Brands' upcoming earnings report, as it could provide insights into the company's financial health and future prospects. The report is scheduled for release after the market closes on July 1, and it will be crucial in determining whether the company's strategic initiatives can overcome current challenges.

• Wells Fargo updates Constellation Brands, Inc. (NYSE:STZ) rating to "Overweight" but advises to hold.
• Expected earnings decline to $3.29 per share for the first quarter, with projected revenue of $2.56 billion.
• Company announces redemption notices for its 4.75% and 5.00% Senior Notes due in 2025 and 2026, respectively.

Constellation Brands, Inc. (NYSE:STZ) is a leading beverage alcohol company with a diverse portfolio of beer, wine, and spirits. Known for popular brands like Corona and Modelo, Constellation Brands competes with other major players in the industry, such as Anheuser-Busch and Diageo. The company is set to release its first-quarter earnings results soon, which investors are keenly watching.

On June 27, 2025, Wells Fargo updated its rating for STZ to "Overweight," suggesting a positive outlook for the stock. At the time, the stock was priced at $161.32. Despite this optimistic rating, the action associated with the update is to hold, indicating that investors should maintain their current positions rather than buying more shares.

Analysts expect Constellation Brands to report earnings of $3.29 per share for the first quarter, a decrease from $3.57 per share in the same period last year. The company's projected quarterly revenue is $2.56 billion, slightly down from $2.66 billion a year ago. This decline in earnings and revenue may be a factor in the cautious "hold" recommendation.

Recently, Constellation Brands announced the delivery of redemption notices for its 4.75% Senior Notes due in 2025 and 5.00% Senior Notes due in 2026. This move could impact the company's financials and is something investors should monitor closely. The stock has experienced a minor decline of 0.1%, closing at $161.32, as highlighted by Benzinga.

The stock has seen a low of $160.30 and a high of $162.30 in recent trading. Over the past year, STZ has reached a high of $264.45 and a low of $159.35. With a market capitalization of approximately $28.54 billion and a trading volume of 1,815,599 shares, Constellation Brands remains a significant player in the beverage industry.

• Constellation Brands, Inc. (NYSE:STZ) is expected to report a decrease in earnings per share and quarterly revenue, indicating potential profitability and sales performance challenges.
• The company has announced the delivery of redemption notices for its senior notes, a move aimed at managing debt and improving financial stability.
• Despite these efforts, STZ's stock has experienced slight volatility, with a recent minor decline in its price.

Constellation Brands, Inc. (NYSE:STZ), a leading beverage alcohol company with a diverse portfolio of beer, wine, and spirits, competes with major industry players like Anheuser-Busch and Diageo. Recently, Boonie Herzog from Goldman Sachs set a price target of $225 for STZ, suggesting a potential increase of 39.47% from its current price of $161.32.

The company is preparing to release its first-quarter earnings results on July 1. Analysts expect earnings of $3.29 per share, a decrease from $3.57 per share in the same period last year. This decline in earnings per share (EPS) indicates potential challenges in maintaining profitability. Additionally, quarterly revenue is projected to be $2.56 billion, down from $2.66 billion a year earlier, highlighting a decrease in sales performance.

On June 2, Constellation Brands announced the delivery of redemption notices for its 4.75% Senior Notes due 2025 and 5.00% Senior Notes due 2026. This move could be part of a strategy to manage debt and improve financial stability. Despite these efforts, the stock recently experienced a slight decline of 0.1%, closing at $161.32, as noted by Barclays analyst Lauren Lieberman, who maintains an Overweight rating on the company.

Currently, STZ is priced at $161.32, with a slight decrease of 0.13% today, reflecting a change of $0.21. The stock's trading range for the day has been between $160.30 and $162.30. Over the past year, STZ has seen a high of $264.45 and a low of $159.35, indicating some volatility in its market performance. The company's market capitalization stands at approximately $28.54 billion, with a trading volume of 1,815,599 shares.