Constellation Brands, Inc. produces, imports, markets, and sells beer, wine, and spirits across the United States, Canada, Mexico, New Zealand, and Italy. Its beer brands include Corona Extra, Modelo Especial, and Pacifico, among others. The company also offers wine brands such as Robert Mondavi Winery and The Prisoner Wine Company, and spirits brands including Casa Noble and High West. Founded in 1945, it is headquartered in Rochester, New York, and distributes to wholesalers, retailers, and state alcohol beverage control agencies.
Earnings week ahead: PepsiCo, Delta, Constellation Brands, Levi Strauss and Tilray to report
A diverse earnings slate spanning consumer staples, beverages, travel, apparel and AI infrastructure is set for the week of October 5 to October 9, with PepsiCo, Constellation Brands, Lamb Weston, Levi Strauss and Tilray Brands offering reads on food, beverage and apparel spending while Delta Air Lines provides a key read on travel demand. Constellation Brands, the U.S. importer and marketer of Corona, Modelo Especial and Pacifico, reports fiscal Q2 FY2027 after Tuesday's close, with consensus EPS of $3.55 and revenue of $2.54B, as the stock sits near a 52-week low of $113.34. Levi Strauss reports fiscal Q3 2026 after Wednesday's close, with consensus EPS of $0.36 and revenue of $1.62B, after management guided to revenue growth of 4%-5% and adjusted EPS of $0.34-$0.36. PepsiCo reports Q3 2026 before Thursday's open, with consensus EPS of $2.30 and revenue of $24.97B, as the company plans to raise prices on select brands including Doritos and Ruffles by low-to-mid-single-digit percentages later this year or early next year, reversing price cuts of as much as 15% introduced earlier in 2026. Delta Air Lines reports Q3 2026 before Friday's open, with consensus EPS of $1.88 and revenue of $18.99B, as a dispute over its in-flight Wi-Fi strategy continues after Delta chose Amazon's LEO satellite network over SpaceX's Starlink for a rollout planned for 2028. Also reporting during the week are Saratoga Investment, Lamb Weston, RPM International, Apogee Enterprises, Tilray Brands, NOVAGOLD Resources, Helen of Troy, AngioDynamics, Richardson Electronics, Resources Connection, Penguin Solutions, Applied Digital and New Horizon Aircraft.
PEP · Pricing · Positive PepsiCo plans to raise prices on select brands like Doritos and Ruffles by low-to-mid-single digits, reversing earlier price cuts, a favorable pricing move ahead of its Q3 report.
DAL · · Neutral Delta is set to report Q3 earnings; article only previews consensus figures and notes an ongoing in-flight Wi-Fi dispute, no clear directional driver.
LEVI · · Neutral Levi Strauss is set to report Q3 earnings; article only previews consensus EPS/revenue and prior guidance, no new directional development.
STZ · · Neutral Constellation Brands is set to report fiscal Q2 earnings; article only previews consensus EPS/revenue and notes the stock near a 52-week low, no clear directional driver.
Constellation Brands Set for Q2 Fiscal 2027 Report With $3.62 EPS Estimate
Constellation Brands is scheduled to release second-quarter fiscal 2027 results on Oct. 6, 2026, with the Zacks Consensus Estimate pegging earnings at $3.62 per share, a 0.3% decline from the year-ago quarter's actual, and revenues at $2.57 billion, up 3.6% year over year. The consensus earnings mark has moved down by a penny in the past seven days, and the company currently carries an Earnings ESP of -1.86% and a Zacks Rank #4 (Sell), a combination the Zacks model says does not conclusively predict an earnings beat. Constellation Brands delivered an earnings surprise of 6.5% in the last reported quarter and its bottom line beat estimates by 9.6%, on average, over the trailing four quarters. Results are expected to reflect continued strength in the beer business on premiumization and capacity expansion in Mexico, while the wine and spirits business transitions toward higher-end brands such as The Prisoner Brand Family, Kim Crawford and Meiomi, after sales plunged 47% in the fiscal first quarter. Tariffs, product mix, marketing timing, Veracruz start-up costs, and high packaging and raw material costs from inflationary pressures are expected to have weighed on operating income in both the beer and wine and spirits businesses. STZ trades at a forward 12-month price-to-earnings ratio of 9.39X, below its five-year high of 18.33X and the Beverages - Alcohol industry average of 13.91X, while its shares have lost 17.8% in the past three months compared with the industry's 6.7% decline.
Constellation Brands Redeems US$600,000,000 4.350% Senior Notes Due 2027
Constellation Brands has redeemed in full its US$600,000,000 4.350% Senior Notes due 2027, with the cash redemption price calculated under the supplemental indenture terms and communicated to noteholders via the trustee. The early retirement of the fixed-rate debt modestly reinforces the balance sheet story but does not materially change near-term demand risk in the beer business, especially around Hispanic consumer spending. The redemption sits alongside Constellation's ongoing capital return program, including the affirmed US$1.0300 quarterly dividend announced in June 2026 and ongoing buybacks. The company's narrative projects $9.5 billion in revenue and $2.1 billion in earnings by 2029, requiring 1.7% yearly revenue growth and about a $0.3 billion earnings increase from $1.8 billion today, while the most bullish analysts once expected about US$9.9 billion in revenue and US$2.2 billion in earnings. Tariffs, aluminum cost pressures, and softer beer volume growth remain the key risks to that outlook.
Trump to scrap 10% tariff on Irish whiskey, lifting US distillers
President Trump announced he will reverse the 10% tax on imported Irish whiskey, sending shares of American distillers higher on Monday. Speaking at the close of the Irish Open golf tournament and ahead of the holiday season, Trump said, "On behalf of the United States of America, I am going to take the tariffs off," though he did not discuss the timing of the action. The tariff had been lowered from 15% to 10% in July, after the president in April lifted the tariff on certain UK whiskeys, including those produced in Scotland and Northern Ireland, leaving the Republic of Ireland with a 10% export tariff on whiskey shipped to the U.S. According to the Irish Whiskey Association, the U.S. represents roughly 30% of Irish whiskey exports. Shares of Brown-Forman, Constellation Brands and MGP Ingredients trended higher at Monday's open, though they surrendered some of the opening gains, as opening U.S. trade to imports from the Republic of Ireland gives U.S. distillers reciprocal export access to Ireland.
Constellation Brands Refines Beer Strategy, Reaffirms Full-Year Outlook
Constellation Brands said it is refining its beer strategy around consumer occasions and brand-specific playbooks while reaffirming the full-year guidance it issued in April. Speaking at an investor conference in Boston, Chief Executive Officer Nick Fink said mature brands such as Corona need a more granular approach centered on relevance and targeted activation, while Modelo, Pacifico and Victoria still have room to grow through distribution. Fink said Constellation was the number-one share gainer during the World Cup by nearly one share point, with strong on-premise performance, but he called off-premise results and August Circana data lackluster amid higher gas and diesel prices and broader macroeconomic and geopolitical pressures. Chief Financial Officer Garth Hankinson said the company has generated more than $600 million in supply-chain savings after spending nearly $1 billion annually over the past decade on brewery capacity, and he expects second-half operating margins to be lower than the first half on seasonal, inflationary and increased marketing pressures. Constellation's wine and spirits segment grew 8% in the prior quarter and is expected to produce margins in the 5% to 6% range this year, while capital allocation will continue to emphasize investment, a dividend with a 30% payout and share repurchases under a $4 billion authorization.
Constellation Brands has announced the full early redemption of its outstanding 4.350% Senior Notes due 2027, with the redemption scheduled for September 18, 2026, ahead of the notes' maturity. As of September 8, 2026, $600 million in aggregate principal amount of the notes remained outstanding.
STZ · Capital · Neutral Early redemption of notes is a financial event, but impact on equity is neutral to slightly negative due to reduced leverage, offset by interest savings.
Constellation Brands Warns Logistics and Commodity Costs to Compress H2 Margins
Constellation Brands warned that higher transportation and commodity costs will weigh on gross profit margins in the second half of the year, sending shares down more than 4% and marking the ninth decline in ten sessions. The margin pressure stems from logistics inflation and volatile commodity hedges, but management remains confident in its long-term outlook, citing underlying pricing power and early signs of normalized consumption. At the Barclays Annual Global Consumer Conference in Boston, CEO Nicholas Fink said the parent of Modelo and Corona is shifting from expansion to operational efficiency and cost optimization, measures expected to boost profits despite sluggish sales. The company reiterated its fiscal 2027 targets of reported EPS between $11.50 and $12.20 and comparable EPS between $11.20 and $11.90, with enterprise organic net sales seen down 1% to up 1%.
Three Stocks Could Win If US-Canada Tariff Pause Becomes a Deal
President Trump announced a three-day pause on new 50% U.S. tariffs on roughly $20 billion of Canadian goods, saying a deal had been reached subject to finalization of documents. Magna International, Constellation Brands, and Canadian Pacific Kansas City are seen as the most direct beneficiaries if the pause hardens into a durable agreement. Magna, which posted Q2 FY26 sales of $11 billion and adjusted EPS of $1.86, would gain from lower auto tariffs cutting cross-border input costs. Constellation Brands, trading at $133.52 versus a $170.83 consensus target, would benefit from restored shelf access for U.S. alcohol producers. Canadian Pacific Kansas City, with Q2 FY26 revenue growth of 13% and an analyst target of $101.73, would see rail volumes recover as tariffs ease. If the paperwork stalls, the full 50% tariffs snap back, rerating all three stocks on the same negative headline.
Berkshire Hathaway boosted stake in Alphabet, homebuilders in the second quarter
Berkshire Hathaway increased its stake in Alphabet and added to homebuilder holdings in the second quarter. The conglomerate picked up roughly 48.1 million Alphabet shares, bringing its total to about 106 million shares valued at $37.76 billion as of June 30. Berkshire also grew its Lennar stake by nearly 30% and established a small new position in D.R. Horton worth $580,504. The company reduced stakes in Bank of America, Ally Financial, and Capital One Financial, and exited its Constellation Brands position.
Beverages, Alcohol, and Tobacco Stocks Post Mixed Q2 as Altria, Celsius, and Vita Coco Diverge
The beverages, alcohol, and tobacco sector reported a mixed second quarter, with aggregate revenues beating analyst consensus by 1% while next-quarter revenue guidance came in 2.2% above expectations. Altria posted revenue of $5.36 billion, up 1.2% year-on-year and in line with estimates, but its stock fell 8.9% since the report. Vita Coco delivered the best performance of the group, with revenue of $216.2 million, a 28.1% increase that exceeded expectations by 3%, and it raised full-year guidance, though shares still dropped 16.4%. Celsius was the weakest, missing revenue estimates by 6.2% with $817.9 million, a 10.6% rise, and its stock declined 5.8%. Constellation Brands beat revenue expectations by 1.6% with $2.43 billion, down 3.3% year-on-year, but issued the weakest full-year guidance update among peers, and its shares slipped 2.4%. PepsiCo surpassed revenue estimates by 0.8% with $24.18 billion, up 6.4%, yet its stock fell 2.3%.
Discount retailers lift consumer staples in July as alcohol, tobacco lag
The Consumer Staples Select Sector SPDR Fund rose 2.6% in July, as gains in discount retailers offset declines in alcoholic beverage and tobacco stocks. Target and Dollar General each rose about 10%, while Coca-Cola gained 7%, Molson Coors added 6.7%, and Philip Morris advanced 5.7%. Constellation Brands fell 6.3% to become the sector's worst performer, followed by Altria down 5.6%, Keurig Dr Pepper down 4%, and Procter & Gamble and Walmart each down 2%. Analyst Justin Purohit said Target's rally was driven by company-specific execution, while Dollar General's strength reflected consumers trading down amid inflation pressures, and he flagged discount retailers including Dollar Tree, TJX Companies, Ross Stores, and Burlington Stores as best positioned if inflation remains sticky.
Constellation Brands shares down 3.8% since last earnings report
Constellation Brands shares have fallen 3.8% since its last earnings report about a month ago, underperforming the S&P 500. The company reported first-quarter fiscal 2027 results that beat the Zacks Consensus Estimate on both top and bottom lines, with comparable earnings per share of $3.43 rising 7% year over year and net sales declining 3% to $2.433 billion. Beer segment sales grew nearly 2% to $2.28 billion, while wine and spirits sales plunged 47% to $149.2 million due to the 2025 Wine Divestitures. The company updated its fiscal 2027 reported EPS outlook to $11.50 to $12.20 and expects comparable EPS of $11.20 to $11.90. Analysts have since revised estimates downward, and the stock currently carries a Zacks Rank #3, or Hold.
Premiumization and Brand Strength Drive Constellation Brands' Growth
Constellation Brands is leveraging premiumization and a strong brand portfolio to drive growth in the beer, wine and spirits market. The company's strategy centers on high-margin, fast-growing segments, with flagship beer brands Modelo Especial, Corona and Pacifico serving as key growth engines in the U.S. market. Constellation Brands continues to invest in product innovation and brand-building initiatives to capitalize on evolving consumer preferences and sustain long-term profitability. Shares of Constellation Brands have lost 4% in the past six months, underperforming the industry's 11.3% gain, and the stock currently carries a Zacks Rank #3, or Hold. The Zacks Consensus Estimate for fiscal 2027 earnings per share remains breakeven, while fiscal 2028 is expected to grow 3.4% year over year.
Jim Cramer recommends buying 5 stocks after rotation sell-off
Jim Cramer says a weak June jobs report triggered a rotation that pushed down shares of Johnson & Johnson, PepsiCo, Starbucks, Constellation Brands, and TJX Companies, creating a buying opportunity. On CNBC's Mad Money, he called the five stocks collateral damage from indiscriminate selling by large funds moving into AI winners. Johnson & Johnson and PepsiCo report earnings on July 15 and July 9, respectively, which Cramer sees as near-term tests. Starbucks is an accumulation play during its turnaround, Constellation's beer business is stabilizing, and TJX benefits as consumers trade down. Cramer stressed that the sell-off was driven by sector rotation, not company fundamentals.
Constellation Brands Trades at Deep Discount as Beer Strength Meets Wine Drag
Constellation Brands shares trade at 10.97 times forward earnings, a steep discount to the S&P 500's 21.2 times and the stock's own five-year median of 18.6 times, reflecting both value appeal and operational warning signs. The stock has fallen 23.4% over the past 12 months, pushing it near the low end of its five-year valuation range. Beer remains the core support, generating about 93.8% of consolidated net sales in the first quarter of fiscal 2027, with net sales rising 2% to $2.28 billion. However, the Wine and Spirits segment posted a comparable operating loss of $1.1 million, and management's full-year organic net sales growth outlook ranges from a 1% decline to a 1% gain for both Beer and Wine and Spirits. The company carries a Zacks Rank of 4, equivalent to a Sell, alongside a Value Score of B and a Growth Score of C.
Brazil and Mexico World Cup exits to weigh on beer demand, says Morgan Stanley
The World Cup eliminations of Brazil and Mexico could dampen beer demand for Anheuser-Busch InBev, Constellation Brands, and Heineken, according to Morgan Stanley. The firm estimates that deep tournament runs historically boost beer volumes by 80 basis points in the quarter finals, 150 basis points in the semi-finals, and 215 basis points in the final. Brazil's early knockout is seen as a material negative surprise given the size of its beer market and high expectations for a deep run, adversely impacting third-quarter sales for the three brewers, with Heineken affected to a lesser extent. Attention now turns to the U.S. team's match against Belgium, which could provide an upside surprise for Anheuser-Busch if the host nation advances further.
BUD · Demand · Negative Brazil's early World Cup exit is expected to dampen beer demand, adversely impacting Anheuser-Busch InBev's third-quarter sales.
STZ · Demand · Negative Brazil's early World Cup exit is expected to dampen beer demand, adversely impacting Constellation Brands' third-quarter sales.
HEIA.AS · Demand · Negative Brazil's early World Cup exit is expected to dampen beer demand, adversely impacting Heineken's third-quarter sales, though to a lesser extent.
HEIO.AS · Demand · Negative Brazil's early World Cup exit is expected to dampen beer demand, adversely impacting Heineken Holding's third-quarter sales, though to a lesser extent.
Constellation Brands reported strong fixed cost leverage and robust gross margins in its beer segment during its first quarter 2027 earnings call, while navigating a volatile consumer environment. CEO Nicholas Fink noted that the quarter saw strong March sales followed by a slowdown due to rising gas prices, with a modest reacceleration in June as pressures eased and the World Cup provided a boost in on-premise settings. The company is seeing strong double-digit growth in its Corona non-alcoholic brand and is exploring further white space opportunities to expand participation across more consumer occasions. CFO Garth Hankinson highlighted that beer margins reached 39% driven by fixed overabsorption, cost savings, and favorable pricing net of mix, though increased marketing spend around major events is expected to impact operating margins in upcoming quarters. The company also acknowledged challenges with Modelo Especial and Corona Extra, with plans to refine its playbook to maintain and grow these scaled brands.
Beverages, Alcohol, and Tobacco Stocks Post Strong Q1 Revenue Beats
The 13 beverages, alcohol, and tobacco stocks tracked reported a strong Q1, with revenues beating analysts' consensus estimates by 4.9% on average, though next quarter's revenue guidance came in 3% below. Celsius led the group with revenue growth of 138% year on year to $782.6 million, exceeding expectations by 2.6%, but its stock fell 10.7% as investor hopes ran higher. Vita Coco delivered the biggest analyst estimate beat, with revenue up 37.3% to $179.8 million, topping forecasts by 20.5%, and its stock surged 28.3%. Boston Beer was the weakest performer, with revenue down 4.4% to $433.9 million and a significant miss on adjusted operating income and EPS, sending its stock down 22%. Constellation Brands reported revenue of $2.43 billion, down 3.3% but beating estimates by 1.6%, while PepsiCo posted revenue of $19.44 billion, up 8.5% and surpassing expectations by 2.9%.
CELH · Capital · Negative Revenue beat expectations but stock fell 10.7% as investor hopes ran higher, indicating a negative market reaction to earnings.
COCO · Capital · Positive Revenue beat expectations by 20.5% and stock surged 28.3%.
SAM · Capital · Negative Revenue declined 4.4% and missed on adjusted operating income and EPS, stock down 22%.
PEP · Capital · Positive Revenue grew 8.5% and surpassed expectations by 2.9%.
STZ · Capital · Positive Revenue beat estimates by 1.6% despite a 3.3% decline.
Nike, ServiceNow, Constellation Brands among stocks making biggest premarket moves
Nike fell more than 3% premarket after reporting a 12% sales decline in Greater China, despite beating earnings and revenue estimates for its fiscal fourth quarter. Constellation Brands rose about 1.5% after posting first-quarter earnings of $3.43 per share, above the $3.20 consensus, with revenue also topping expectations and full-year guidance roughly in line. Shutterstock plunged more than 30% and Getty Images dropped 4% after Getty called off their proposed merger due to demands from a U.K. regulator. Alcoa declined 4% after announcing a $4.1 billion deal to acquire South32's bauxite, alumina and aluminum portfolio. ServiceNow gained more than 5% and Salesforce nearly 4% after Guggenheim upgraded both to buy, citing attractive valuations and dismissing AI as a threat. Bloom Energy jumped over 7.5% on an expanded partnership with Brookfield to finance power for AI infrastructure projects. Kroger slipped 2% after agreeing to acquire Giant Eagle for $1.65 billion. Sandisk tumbled 3.5% and Micron Technology fell about 2.5% on the first trading day of the third quarter, following more than tripling in the prior quarter.
Constellation Brands beats Q1 forecasts on strong beer sales
Constellation Brands reported first-quarter adjusted earnings of $3.43 per share, beating the consensus estimate of $3.25, while revenue of $2.43 billion edged past expectations of $2.41 billion. The beer segment drove results with net sales up 2% to $2.28 billion and operating income also rising 2% to $891.4 million, though total company sales declined 3% year-over-year. Within the beer portfolio, Modelo Especial depletion volumes fell about 2% and Corona Extra dropped more than 5%, while Pacifico, Victoria, and Modelo Chelada grew 21%, 14%, and 6% respectively. The company reaffirmed its full-year adjusted earnings guidance of $11.20 to $11.90 per share, with the midpoint of $11.55 remaining below the analyst consensus of $11.74. Shares rose 2.4% in premarket trading following the results.
Constellation Brands Earnings Miss, but World Cup Lifts On-Premise Beer Sales
Constellation Brands reported fiscal first-quarter net sales of $2.43 billion, down from $2.52 billion a year earlier but above analyst expectations of $2.39 billion, while profit rose to $653.8 million from $516.1 million. The company, which imports Modelo and Corona beers, saw its Mexican beer portfolio drive most revenue, with demand from Hispanic customers beginning to rebound. Meanwhile, on-premise beer sales nationally rose 5.5% for the week ending June 20, which included the first 21 US-hosted World Cup matches, and climbed 15.4% in World Cup host markets, according to Beer Institute data shared with The Daily Upside. Constellation executives noted that a surge in gas prices may have pressured lower-income consumers, contributing to a deceleration in retail food and beverage volume trends as the quarter progressed.
Constellation Brands reported second-quarter fiscal 2026 revenue of $2.43 billion, beating Wall Street estimates of $2.39 billion despite a 3.3% year-on-year decline. Adjusted earnings per share came in at $3.43, topping the consensus of $3.26. However, the company's full-year revenue guidance of $9 billion at the midpoint fell 1.1% short of analyst expectations, and its full-year adjusted EPS outlook of $11.55 was also below estimates. Organic revenue rose 3% year on year, exceeding projections, while operating margin improved to 34.7% from 28.4% a year earlier.
Constellation Brands Reports First Quarter Fiscal 2027 Financial Results
Constellation Brands reported its first quarter fiscal 2027 financial results. A conference call to discuss the results and outlook will be hosted by President and CEO Nicholas Fink and CFO Garth Hankinson on Wednesday, July 1, 2026 at 8:00 a.m. Eastern Time. Details for joining the call or accessing the live webcast are available on the company's investor relations website.
Nike, Constellation Brands, Progress Software to Report Earnings After Hours on June 30
Nike, Constellation Brands, and Progress Software are scheduled to report quarterly earnings after the market closes on June 30, 2026. Nike's consensus earnings per share forecast from 11 analysts is 11 cents, a 21.43% decrease from the same quarter last year, though the company has beaten expectations in every quarter over the past year. Constellation Brands' consensus from 6 analysts is $3.22 per share, unchanged from a year ago, after missing estimates in the second calendar quarter of 2025 by 3.59%. Progress Software's consensus from 3 analysts is $1.15 per share, a 3.60% increase from the prior year, and it has also beaten expectations in each of the past four quarters.
NKE · Capital · Neutral Earnings report scheduled; consensus EPS down 21.43% YoY but company has beaten expectations in every quarter over the past year.
PRGS · Capital · Neutral Earnings report scheduled; consensus EPS up 3.60% YoY and company has beaten expectations in each of the past four quarters.
STZ · Capital · Neutral Earnings report scheduled; consensus EPS unchanged YoY but company missed estimates in Q2 2025 by 3.59%.
Stock Index Futures Gain at Quarter-End Ahead of JOLTS Data and Nike Earnings
U.S. stock index futures edged higher on Tuesday, putting major indexes on track for their strongest quarterly gains in years, as investors awaited the JOLTS job openings report and earnings from Nike. September S&P 500 E-Mini futures rose 0.10% and Nasdaq 100 E-Mini futures added 0.16%. Economists forecast May JOLTS job openings at 7.280 million, down from 7.618 million in April. The Conference Board's consumer confidence index for June is expected at 94.4, up from 93.1. Nike and Constellation Brands are set to report quarterly results. In pre-market trading, AeroVironment surged over 23% on strong results, while Concentrix tumbled more than 24% after cutting guidance. European markets hit a record high, with the Euro Stoxx 50 up 1.04%, as French and Italian inflation slowed more than expected. Asian stocks also closed higher, with Japan's Nikkei 225 up 0.86%, capping its strongest quarter since 1965.
Nike earnings, consumer confidence data set to move markets Tuesday
Tuesday, June 30 brings key market-moving events including earnings from Nike and Constellation Brands, plus a fresh consumer confidence reading. Nike will report quarterly results with investors watching for signs of a turnaround, though analysts expect sales to decline by low single digits. Wall Street will also listen for commentary on Caitlyn Clark's first signature shoe as Nike aims to rebuild momentum in basketball and women's sports. Constellation Brands is also posting earnings, with net revenue expected to fall about 5% due to divestitures in its wine and spirits business, while beer sales may rise on shipment volume and pricing ahead of the World Cup. Meanwhile, economists forecast consumer confidence to increase in June from the prior month, offering insight into household sentiment on inflation and spending willingness.
NKE · Capital · Neutral Nike reports quarterly results; sales expected to decline, but investors watch for turnaround signs and commentary on Caitlyn Clark's shoe.
STZ · Capital · Neutral Constellation Brands posts earnings; net revenue expected to fall ~5% due to divestitures, but beer sales may rise on World Cup-related shipments and pricing.
Constellation Brands to report Q1 earnings on June 30 after market close
Constellation Brands is scheduled to announce Q1 earnings results on Tuesday, June 30th, after market close. The consensus EPS estimate is $3.21, down 0.3% year-over-year, and the consensus revenue estimate is $2.39 billion, down 5.2% year-over-year. Over the last two years, the company has beaten EPS estimates 75% of the time and revenue estimates 50% of the time. In the past three months, EPS estimates have seen two upward revisions and thirteen downward revisions, while revenue estimates have seen five upward and five downward revisions.
Zacks Investment Research has released its latest earnings preview, naming JPMorgan, Micron Technologies, FedEx, Nike, and Constellation Brands among the companies likely to issue earnings surprises. Total S&P 500 earnings are expected to increase by 23.7% in the June quarter from the same period last year on 11.4% higher revenues. The Q2 earnings season will gain momentum when JPMorgan and other major banks report on July 14, though the cycle has already begun with 13 S&P 500 members having reported fiscal May-quarter results, including Micron and FedEx. This week, four more companies with fiscal quarters ending in May are set to report, among them Nike and Constellation Brands. Aggregate earnings estimates for the S&P 500 have steadily moved higher since April, with the Energy sector seeing the most notable upgrade—estimates up more than 90%—while Transportation and Medical are among the sectors facing the most negative revisions.
Constellation Brands faces flat sales projections, seeks new growth avenues
Constellation Brands is confronting flat sales projections, highlighting limited near-term revenue momentum. The company is under pressure to identify new growth avenues, including potential M&A or business adjustments, as current opportunities for attractive expansion are described as limited. With beer depletions flat and wine and spirits still adjusting, management may adjust product mix, geographic exposure, or pursue acquisitions. A forward P/E of 12.1x signals cautious expectations, and analysts have flagged at least one risk around the company's financial position, including a relatively high level of debt that could constrain larger deals. The next few earnings calls should provide clearer signals on how the company intends to balance growth, profitability, and balance sheet discipline.
Constellation Brands Stock: How to Earn $500 Monthly From Dividends
Constellation Brands, Inc. is set to release its first-quarter earnings after the closing bell on Tuesday, June 30, with analysts expecting earnings of $3.25 per share on revenue of $2.4 billion. Ahead of the report, JPMorgan analyst Drew Levine maintained a Neutral rating and raised the price target from $168 to $169. The company currently offers an annual dividend yield of 2.85%, with a quarterly dividend of $1.03 per share, or $4.12 annually. To generate $500 per month, or $6,000 per year, from dividends alone, an investor would need approximately $210,319 invested, equating to about 1,456 shares. For a more modest $100 per month, the required investment drops to roughly $42,035, or 291 shares.
Three Consumer Stocks Face Open Questions Amid Sector Underperformance
Consumer staples stocks are under scrutiny as the sector declined 2.4% over the past six months while the S&P 500 rose 6.2%. Constellation Brands, Freshpet, and Utz Brands are highlighted as companies with concerning fundamentals. Constellation Brands faces flat projected sales and a declining return on invested capital of 9%. Freshpet shows a low free cash flow margin of 1.6% and a return on invested capital of just 0.1%. Utz Brands has experienced disappointing organic revenue and below-average returns on capital.
FRPT · Capital · Negative Freshpet has low free cash flow margin of 1.6% and return on invested capital of just 0.1%, indicating poor financial performance.
STZ · Capital · Negative Constellation Brands faces flat projected sales and declining return on invested capital of 9%, signaling weak fundamentals.
UTZ · Capital · Negative Utz Brands has experienced disappointing organic revenue and below-average returns on capital.
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