Buying fine wine inside a self-directed IRA feels like smart diversification until the IRS steps in and turns the purchase into a taxable event that ripples all the way through your Social Security benefits.
Thieves recently got away with about 30,000 bottles from a Marchesi Antinori warehouse in Tuscany. Fortune valued the haul at roughly $8.2 million using U.S. retail prices. Fine wine can command serious money, and collectors aren’t the only ones paying attention.
For a retiree looking beyond stocks and bonds, a few cases might look like an investment. Picture a single 68-year-old who uses $20,000 of pretax savings in his self-directed traditional IRA to buy Bordeaux, kept in a bonded warehouse. He receives no cash and never opens a bottle. To him, it feels like simple diversification.
The IRS sees it very differently, and part of the bill lands on his Social Security.
Why the IRS Treats Wine in an IRA as a Withdrawal
Federal tax rules treat wine as a collectible. IRS guidance puts alcoholic beverages on the same list as artwork, rugs, antiques, gems, and stamps. When an IRA buys a collectible, the IRS treats the purchase price as a withdrawal that year.
So his $20,000 shows up on his tax return as a withdrawal, even though the wine never leaves storage and no money reaches his checking account. Withdrawals from a traditional IRA are taxed as ordinary income, which means he owes tax on money he can’t spend. Someone younger than 59½ could also owe a 10% additional tax.
The rules offer one small break. Any amount that was taxed when the wine was bought isn’t taxed a second time when the bottles are later distributed out of the IRA. The exceptions cover certain coins and bullion. Wine isn’t one of them.
How a Paper Withdrawal Pulls More of His Benefits Into Taxable Income
Whether Social Security benefits get taxed depends on what the IRS calls combined income. That is half of your benefits plus all your other income, including tax-exempt interest.
For a single taxpayer, up to 50% of benefits can become taxable once combined income tops $25,000. Above $34,000, up to 85% can be taxed.
Married couples filing jointly use limits of $32,000 and $44,000.
Say he receives $24,000 a year from Social Security, which is $2,000 a month.
That’s close to the $2,071 average retired-worker benefit after the 2.8% cost-of-living adjustment for 2026.
He also takes $15,000 a year from his IRA. That puts his combined income at $27,000, so just $1,000 of his benefits is taxable.
Now add the wine. His combined income rises to $47,000, and the taxable share of his benefits jumps to $15,550. A $20,000 wine purchase adds $34,550 to his income before deductions.
Once he’s in this income range, every extra dollar of IRA income can drag up to 85 cents of Social Security into taxable income along with it. His effective tax rate on that extra income ends up well above his bracket.
Wine Stocks Follow Different Rules
Shares of a wine company work differently. If the IRA owns stock in Constellation Brands (NYSE:STZ | STZ Price Prediction), that’s an ordinary stock investment, and nothing is treated as distributed. The collectibles rule applies to the physical bottles. With fractional-ownership platforms and wine funds, the legal structure matters, so have a tax professional review exactly what the IRA would own.
A Surprise Withdrawal Changes Every Other Plan for the Year
The deemed withdrawal lands on top of whatever else he planned for that year: his regular IRA withdrawals, any Roth conversion, and capital gains from a taxable account. A year he expected to be normal can suddenly look like his highest-income year in retirement.
The limits stay where they are while benefits rise. Even without the wine purchase, a bigger Social Security check can raise his combined income. As of early October, The Senior Citizens League projects a 3.5% cost-of-living increase for 2027. That leaves less room for a surprise.
Ask Two Questions Before the IRA Buys Anything You Can Touch
First, ask your custodian and a tax professional how the IRS classifies the asset. If it’s a bottle, a painting, or a rare coin outside the exceptions, assume the IRS will treat the purchase as a withdrawal.
Second, work out the full cost, including what it does to Social Security. Once the purchase goes through, the income belongs to that tax year. The tax on the withdrawal itself is only part of the bill, because more Social Security income gets taxed too. This collectibles rule is one of several subtle IRS traps that can drain a retirement account (we mapped the rest in a free guide, here). If you love fine wine, buying it with money outside the IRA is often the simpler way.
He never opened a bottle or pocketed a dollar. His IRA still bought him a tax bill.
Contact [email protected] for any questions or corrections.
Fragasso Financial Advisors Inc cut its holdings in Constellation Brands Inc (NYSE:STZ – Free Report) by 81.2% during the 3rd quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The institutional investor owned 1,690 shares of the company’s stock after selling 7,280 shares during the period. Fragasso Financial Advisors Inc’s holdings in Constellation Brands were worth $207,000 as of its most recent SEC filing.
Other large investors have also recently added to or reduced their stakes in the company. Dimensional Fund Advisors LP raised its position in Constellation Brands by 5.1% during the first quarter. Dimensional Fund Advisors LP now owns 1,826,652 shares of the company’s stock worth $274,029,000 after acquiring an additional 88,538 shares during the last quarter. Bank of America Corp DE lifted its holdings in shares of Constellation Brands by 9.5% in the first quarter. Bank of America Corp DE now owns 1,403,275 shares of the company’s stock valued at $210,491,000 after purchasing an additional 121,515 shares in the last quarter. Bank of New York Mellon Corp lifted its holdings in shares of Constellation Brands by 4.0% in the first quarter. Bank of New York Mellon Corp now owns 1,042,651 shares of the company’s stock valued at $156,398,000 after purchasing an additional 40,124 shares in the last quarter. Empyrean Capital Partners LP lifted its holdings in shares of Constellation Brands by 3.3% in the first quarter. Empyrean Capital Partners LP now owns 606,200 shares of the company’s stock valued at $90,930,000 after purchasing an additional 19,500 shares in the last quarter. Finally, Nykredit A S acquired a new stake in shares of Constellation Brands in the second quarter valued at approximately $83,687,000. 77.34% of the stock is owned by institutional investors and hedge funds.
Analyst Upgrades and Downgrades A number of research analysts have recently weighed in on STZ shares. Evercore set a $160.00 price objective on shares of Constellation Brands in a research note on Monday, September 21st. Needham & Company LLC cut their price objective on Constellation Brands from $185.00 to $150.00 and set a “buy” rating for the company in a research report on Thursday, October 8th. BMO Capital Markets reaffirmed an “outperform” rating on shares of Constellation Brands in a research note on Thursday, October 8th. Bank of America reduced their target price on Constellation Brands from $152.00 to $145.00 and set an “underperform” rating on the stock in a research note on Thursday, July 2nd. Finally, Piper Sandler set a $125.00 target price on Constellation Brands in a report on Thursday, October 8th. Twelve analysts have rated the stock with a Buy rating, seven have issued a Hold rating and five have assigned a Sell rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of “Hold” and a consensus target price of $153.09.
Get Our Latest Stock Report on Constellation Brands Constellation Brands Trading Up 0.2% Shares of STZ stock opened at $127.38 on Thursday. The firm has a 50-day moving average price of $125.49 and a 200 day moving average price of $137.49. Constellation Brands Inc has a twelve month low of $110.60 and a twelve month high of $168.60. The company has a market capitalization of $21.75 billion, a price-to-earnings ratio of 10.48, a PEG ratio of 2.60 and a beta of 0.44. The company has a current ratio of 1.00, a quick ratio of 0.53 and a debt-to-equity ratio of 1.02.
Constellation Brands (NYSE:STZ – Get Free Report) last released its earnings results on Tuesday, October 6th. The company reported $3.74 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $3.62 by $0.12. Constellation Brands had a net margin of 19.57% and a return on equity of 24.75%. The company had revenue of $2.63 billion for the quarter, compared to analyst estimates of $2.54 billion. During the same period in the prior year, the firm earned $3.63 EPS. The firm’s quarterly revenue was up 6.1% on a year-over-year basis. Constellation Brands has set its FY 2027 guidance at 11.200-11.900 EPS. Research analysts forecast that Constellation Brands Inc will post 11.85 earnings per share for the current fiscal year.
Constellation Brands Dividend Announcement The company also recently disclosed a quarterly dividend, which will be paid on Friday, November 13th. Stockholders of record on Friday, October 30th will be given a $1.03 dividend. This represents a $4.12 dividend on an annualized basis and a dividend yield of 3.2%. The ex-dividend date of this dividend is Friday, October 30th. Constellation Brands’s payout ratio is currently 36.95%.
Constellation Brands Company Profile (Free Report)
Constellation Brands, Inc is a beverage alcohol company that develops, markets and distributes beer, wine and spirits. Its portfolio includes well-known beer brands such as Modelo Especial, Corona Extra, Corona Light and Pacifico, along with wine brands including Robert Mondavi, Kim Crawford, Meiomi, The Prisoner Wine Company and Ruffino.
The company also offers spirits through brands such as Casa Noble tequila and High West whiskey. Constellation’s products are sold through retailers, distributors, restaurants and other on-premise locations, with a primary focus on the United States.
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Key Takeaways STZ reaffirms fiscal 2027 EPS guidance of $11.20-$11.90 as stronger September beer demand lifts confidence.Pacifico's 20% growth and Victoria's mid-teens gains support STZ despite declines in Modelo and Corona.STZ projects second-half beer margins of 34.5%-35.5% amid higher marketing costs and seasonal volume weakness. Constellation Brands, Inc. (STZ - Free Report) struck a more confident tone during its second-quarter fiscal 2027 earnings call, citing improving beer demand, stronger marketing execution and healthier distributor inventories.
Management reaffirmed its annual outlook while indicating that sustained September trends could push results toward the upper end of its guidance range.
STZ Sees Potential to Reach High End of OutlookPresident and CEO Nicholas Fink reaffirmed fiscal 2027 comparable earnings guidance of $11.20-$11.90 per share, emphasizing that September's improving demand trends support expectations toward the high end.
Addressing questions from RBC Capital Markets, Fink explained that September's acceleration extended beyond Labor Day timing benefits. He attributed the improvement partly to college football programming and stronger consumer engagement.
CFO Garth Hankinson reinforced management's confidence, noting that second-quarter performance exceeded internal expectations even after accounting for distributor inventory rebuilding.
The company reported earnings of $3.74 per share, which exceeded the Zacks Consensus Estimate of $3.62. Revenues of $2.63 billion surpassed the consensus mark of $2.57 billion.
Constellation Addresses Distributor Inventory ConcernsDistributor inventory normalization attracted considerable analyst attention after beer shipments increased 5.5% while depletions declined 0.6% during the quarter.
Responding to Bank of America, Fink explained that fiscal 2026 inventory reductions had left distributors with insufficient stock, creating operational inefficiencies and potential product shortages.
Management indicated that distributor inventories have recovered but remain below historical averages. Fink expects second-half shipment patterns to normalize, with full-year shipments and depletions tracking within 99% of each other.
STZ Highlights Pacifico and Victoria GrowthConstellation Brands' beer portfolio continued gaining market share despite uneven performance among its established brands.
Fink highlighted Pacifico's approximately 20% year-to-date growth and its emergence among the 10 largest U.S. beer brands. Victoria also maintained strong momentum, with first-half growth in the mid-teens.
Meanwhile, Modelo Especial and Corona Extra recorded depletion declines of approximately 2% and 5%, respectively. Fink emphasized improving Corona trends, including stabilizing market share and renewed traction in New York and Miami.
Constellation Refines Marketing and Pricing StrategyManagement outlined a more targeted marketing approach focused on consumer occasions, brand relevance and retail execution rather than awareness alone.
Fink identified college football, sports sponsorships and localized promotions as opportunities to strengthen consumer engagement. Hankinson expects marketing spending to approximate 10% of second-half net sales, exceeding 11% during the third quarter.
Addressing Citigroup's pricing questions, management maintained its long-term 1%-2% pricing framework while favoring the lower end amid consumer pressures.
Hankinson attributed roughly flat second-quarter beer price and mix performance to unfavorable mix, promotional investments and portfolio repositioning.
STZ Faces Margin Pressure and Brewery CostsBeer operating margin declined 160 basis points to 39%, reflecting increased marketing expenditures and other selling, general and administrative costs.
Responding to Wells Fargo, Hankinson projected second-half beer operating margins of 34.5%-35.5%, citing seasonal volume weakness, maintenance spending and continued brand investment.
He also clarified that the Veracruz brewery is expected to enter service early in fiscal 2028. Associated depreciation should create approximately $75 million in annualized expense and a 90-basis-point margin headwind.
Constellation Balances Acquisitions and Shareholder ReturnsManagement emphasized disciplined capital allocation as brewery construction spending moderates and cash generation improves.
Hankinson highlighted $530 million in year-to-date share repurchases and approximately $2.5 billion remaining under the authorization extending through fiscal 2028.
Fink also discussed the SpikedAde acquisition, which included $75 million upfront and potential contingent payments totaling $278 million. Management views the spirit-based ready-to-drink brand as an opportunity to enter emerging consumption occasions without shifting its primary focus away from beer.
STZ Maintains Focus on Execution and GrowthManagement's commentary centered on rebuilding sustained growth through stronger brand investment, distribution discipline and improved operating efficiency.
Fink emphasized that Constellation Brands’ established beer brands remain central to long-term value creation, while emerging products offer additional expansion opportunities.
The company's near-term priorities remain maintaining improving consumer trends, supporting marketing effectiveness and protecting profitability against inflationary pressures.
What STZ's Zacks Rank and Style Scores IndicateSTZ currently carries a Zacks Rank #3 (Hold), reflecting a neutral near-term earnings revision outlook. Its Value Score of B indicates relatively favorable valuation characteristics, while its Growth Score of D and Momentum Score of F reflect weaker positioning in those investment styles. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The company's VGM Score of D indicates an unfavorable combination of value, growth and momentum characteristics relative to higher-scoring stocks. These signals warrant distinction from management's operational outlook. The Zacks Rank can change as analysts revise earnings estimates following the latest results.
Constellation Brands, Inc. (NYSE:STZ) posted better-than-expected second-quarter results, after the closing bell on Tuesday.
Constellation Brands reported quarterly earnings of $3.74 per share which beat the analyst consensus estimate of $3.56 per share. The company reported quarterly sales of $2.633 billion which beat the analyst consensus estimate of $2.542 billion.
The company raised fiscal 2027 GAAP EPS guidance to $11.85-$12.55 from $11.50-$12.20, versus the $11.93 estimate. Constellation Brands reiterated adjusted EPS guidance at $11.20-$11.90, compared with the $11.72 estimate and expects to reach the high end if positive September trends continue.
Constellation Brands also said it acquired SpikedAde, a spirit-based ready-to-drink (RTD) brand.
Constellation shares fell 1% to $117.23 in pre-market trading.
These analysts made changes to their price targets on Constellation following earnings announcement.
HSBC analyst Sorabh Daga downgraded the stock from Buy to Hold and cut the price target from $192 to $135. Morgan Stanley analyst Dara Mohsenian maintained the stock with an Equal-Weight rating and cut the price target from $158 to $145. Needham analyst Gerald Pascarelli maintained the stock with a Buy and lowered the price target from $185 to $150. Considering buying STZ stock? Here’s what analysts think:
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Constellation Brands NASDAQ: STZ delivered an earnings report that showed a solid beat on the top and bottom lines. However, the company's weak forward guidance confirms that consumers are cutting back on discretionary purchases such as alcoholic beverages. The stock briefly rallied toward $120 on Wednesday morning before giving back most of the gain.
First, the good news. The company behind the Modelo and Corona brands delivered strong headline numbers in its second-quarter earnings report for its fiscal year 2027 (FY2027). Revenue of $2.63 billion topped estimates of $2.54 billion and was 6% higher year over year. That's a meaningful turnaround from the first quarter, when net sales fell 3.3% year over year.
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The bottom line numbers were equally strong. Adjusted earnings per share (EPS) of $3.74 comfortably beat estimates of $3.55 and were 3% higher year over year.
Beat the Quarter, But Maintained Its GuidanceBut it was the company's forward guidance that took the buzz out of the report. The company is calling for an organic net sales decline of approximately 1%. That's the bottom of the range of negative 1% to positive 1% the company offered after the first quarter. It also implies a softer second half, since sales just grew 6% in the second quarter.
Constellation maintained its FY2027 adjusted EPS outlook in a range between $11.20 and $11.90. But investors are paying more attention to the midpoint of $11.55, which is below the consensus target of $11.72. In other words, management beat the quarter but didn't raise the year. For a stock looking for a reason to rally, that wasn't enough.
Beer Continues to Be the Big WinnerBeer remains Constellation's biggest business. Net sales in that segment rose 5% to $2.47 billion, helped by a 5.5% jump in shipments. Beer now accounts for about 94% of total net sales.
That shipment number requires context. A year ago, distributors were working down inventory. Constellation said at the time that shipments would trail depletions by six to seven points in that quarter. Some of this quarter's growth is simply lapping that easy comparison.
Modelo stayed the top beer brand by dollar sales, and Pacifico climbed into the top 10. Beer operating margin slipped 160 basis points to 39%, as higher marketing and overhead costs outweighed lower tariff expenses. That's still above the 38% beer margin the company posted for all of fiscal year 2026 (FY2026).
The wine and spirits business grew faster on a percentage basis. Net sales there rose 17% to $159 million, with depletions up 10.2%. But at about 6% of total sales, the segment isn't large enough to move the needle. It's also a smaller, higher-end portfolio since the company sold its mainstream wine brands in 2025.
Is It the Economy or Something More?94th Percentile
Hold
33.1% Upside
Bearish
Strong
0.16 N/A
3.22%
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Looking at this earnings report in a vacuum, investors could make a case that the weak guidance from Constellation Brands is a statement on the economy. That would make STZ a clear buy-the-dip opportunity.
The problem with that thinking is that nothing seems normal as it relates to Constellation Brands. The stock is trading at 10-year lows. Some of that can be explained by the unsustainable boost the stock received in 2020 and 2021.
That doesn't explain, however, the undeniable trend that many consumers are consuming less alcohol as part of a wellness trend that may, or may not, include GLP-1 drugs. It also doesn't account for changing tastes in alcoholic beverages. Consumers have more variety, and they seem eager to shift their beverage preferences.
Management has offered a different explanation. The company has said its Hispanic consumers remain interested in beer but are drinking less often due to socioeconomic concerns. That's a cyclical argument. The wellness trend is structural. Right now, the market is pricing in the structural view.
What the Chart Says About STZ StockThe technical picture reflects that uncertainty. STZ has posted a series of lower highs since peaking near $168 in April. The stock sits about 8% below its 50-day simple moving average (SMA) of roughly $126. That average is still sloping lower.
There is one early sign of life. The MACD line just crossed above its signal line, a classic bullish signal. However, the crossover happened well below the zero line. In a downtrend, these signals often mark a pause rather than a reversal. A close above the 50-day SMA would carry far more weight.
Bargain or Value Trap?At around $116, STZ trades for about 10 times the midpoint of its full-year EPS guidance. That's a steep discount to its historical valuation. The dividend yield is also elevated at roughly 3.5%.
That's the tension at the heart of STZ. The fundamentals show a company still growing beer sales and earning over $11 per share. The perception is that its core customer is drinking less and may not come back.
Until Constellation shows depletion growth that isn't flattered by easy comparisons, perception is likely to win. Income-focused investors may find the yield worth a starter position. Everyone else may want the chart to confirm a bottom first
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Players in the Zacks Beverages – Alcohol industry are creating growth avenues through ready-to-drink cocktails, low- and no-alcohol offerings, and broader portfolio innovation. These products address the demand for convenience, variety, moderation and affordability while helping companies capture new drinking occasions. Gen Z also remains an important long-term opportunity, with younger legal-drinking-age consumers favoring discovery, social experiences, perceived value and distinctive brands. This supports investment in experiential marketing, occasion-based products and targeted innovation.
However, tariffs could pressure U.S. beverage alcohol companies by raising costs for imported packaging, materials and beverages, particularly for businesses with global supply chains. Companies may need to absorb these costs or raise prices, potentially hurting margins or demand. At the same time, persistent softness in alcohol consumption, cost-of-living pressures, trading down and moderation trends could weigh on volumes, pricing power and earnings growth, especially for brands with weaker differentiation or limited pricing flexibility.
Leading players such asAnheuser-Busch InBev, Diageo Plc, Constellation Brands Inc., Brown-Forman Corp. and Molson Coors Beverage Co. look well-placed to capitalize on innovation trends.
About the IndustryThe Zacks Beverages – Alcohol industry mainly comprises producers, importers, exporters, marketers and sellers of alcoholic beverages like beer, craft beer, ciders, wine, rum, whiskey, liqueurs, vodka, tequila, champagnes, brandy, amaretto, ready-to-drink (RTD) cocktails and malt. Some industry players also produce and sell non-alcoholic beverages like carbonated soft drinks, sparkling waters, bottled water, energy drinks, powdered and natural juices, and RTD teas.
The companies sell products through wholesalers and retailers like supermarkets, warehouse clubs, grocery stores, convenience stores, package stores, drug stores and other retail outlets. The industry participants also sell beer directly to consumers in cans and bottles at restaurants, pubs, bars and liquor stores. Some brewers operate brewpubs or tasting rooms at breweries, offering consumers the freshest beer.
What's Shaping the Future of Beverages - Alcohol IndustryInnovation Beyond Traditional Alcohol Creates Growth Runway:Despite softer industry volumes, beverage companies are unlocking growth opportunities through innovation. Demand for ready-to-drink cocktails continues to outpace most traditional alcohol categories as consumers seek convenience, flavor variety and affordability.
At the same time, low- and no-alcohol beverages are evolving into a meaningful profit pool rather than a niche offering, attracting consumers who want moderation without abandoning social drinking. Leading brewers and spirits companies are expanding product portfolios to address these changing occasions, allowing them to capture incremental demand instead of relying solely on traditional alcohol consumption. Successful innovation could offset category pressures and strengthen long-term market positioning.
Gen Z Engagement & Experience-Led Drinking Offer Opportunities:Younger legal-drinking-age consumers remain an important long-term opportunity for the U.S. beverage alcohol industry. Rather than abandoning alcohol altogether, Gen Z consumers are becoming more selective about when, where and what they drink, placing greater emphasis on discovery, social experiences and perceived value.
Recent data indicates that Gen Z participation in alcohol has remained relatively stable, while this group also shows strong engagement with on-premise channels. This creates opportunities for beverage companies to drive demand through distinctive brands, experiential marketing, occasion-based offerings and targeted innovation that resonates with evolving consumer preferences.
Tariffs Could Squeeze Margins: Tariffs are emerging as a meaningful overhang for U.S. beverage alcohol companies with global sourcing and international supply chains. Higher duties on imported glass bottles, aluminum, packaging materials and select beverage imports can raise input costs, forcing producers to either absorb the increase or pass it on to consumers. While premium brands have greater pricing flexibility, mass-market labels remain more vulnerable to demand erosion from higher shelf prices. Investors should watch for margin pressure, procurement disruptions and slower earnings growth, particularly among companies with significant import exposure or limited domestic sourcing capabilities.
Beyond tariffs, the biggest challenge is persistent softness in overall alcohol consumption. Cost-of-living pressures are prompting consumers to drink less, trade down or become more selective about purchases, while moderation trends are also weighing on demand. This environment could continue to pressure volumes, pricing power and margins, particularly for brands lacking strong value propositions or differentiated premium offerings.
Zacks Industry Rank Indicates Bright ProspectsThe Zacks Beverages – Alcohol industry is a 17-stock group within the broader Zacks Consumer Staples sector. The industry currently carries a Zacks Industry Rank #107, placing it at the top 43% of more than 250 Zacks industries.
The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates bright near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
The industry’s positioning in the top 50% of the Zacks-ranked industries is a result of a positive earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, it appears that analysts are gradually gaining confidence in this group’s earnings growth potential.
Before we present a few stocks that you may want to consider for your portfolio, let us take a look at the industry’s recent stock-market performance and valuation picture.
Industry Underperforms S&P 500The Zacks Beverages – Alcohol industry has outperformed the broader sector and underperformed the S&P 500 in the past year.
The stocks in the industry have collectively returned 12.5% in the past year, whereas the Zacks Consumer Staples sector has risen 2.2%. Meanwhile, the Zacks S&P 500 composite has rallied 16.1%.
Beverages - Alcohol Industry's ValuationBased on the forward 12-month price-to-earnings (P/E) ratio, commonly used to value Consumer Staples stocks, the industry is currently trading at 14.22X compared with the S&P 500’s 19.85X and the sector’s 16.17X.
Over the last five years, the industry traded as high as 24.03X, as low as 13.77X and at the median of 17.87X.
5 Alcohol Beverages Stocks to Keep a Close Eye OnOne stock in the Zacks Beverages – Alcohol space currently sports a Zacks Rank #1 (Strong Buy), but none of the stocks carry a Zacks Rank #2 (Buy). We have selected four stocks with a Zacks Rank #3 (Hold) to watch from the same industry. You can see the complete list of today’s Zacks #1 Rank stocks here.
Let us have a look at the companies.
Diageo:The stock of this London-based leading beverage company has declined 11.4% in the past year. DEO operates in approximately 180 countries, and is involved in producing, distilling, brewing, bottling, packaging, and distributing spirits, wine and beer. The company continues to place innovation and consumer moderation at the center of its long-term growth strategy, addressing evolving consumption patterns, and diversifying its portfolio. Innovation remains a key driver, with strong momentum across tequila, whisky, beer and RTD formats.
Equally important is Diageo’s push into moderation, wherein it has established clear leadership in non-alcoholic spirits. The company is refining its $2-billion productivity program to drive efficiency across the business while ensuring long-term sustainable growth. A key focus is balancing cost savings with strategic reinvestment, particularly in marketing and brand activation. The Zacks Consensus Estimate for Diageo’s fiscal 2027 EPS has moved up 3.4% in the past 30 days. The consensus estimate for fiscal 2027 earnings suggests growth of 2.1% from the year-ago period’s reported figure. The company currently flaunts a Zacks Rank #1.
Anheuser-Busch InBev: Also known as AB InBev, this is a global brewing leader with a portfolio of iconic brands spanning diverse geographies. Its leading positions across key markets and expansive global footprint provide meaningful scale advantages, enabling efficient operations and the ability to grow multi-country brands worldwide. The company continues to benefit from resilient consumer demand for its core brands, supported by strong business momentum, driven by disciplined execution, sustained brand investment and an accelerated digital transformation agenda. Premiumization remains a central growth lever, as consumers increasingly trade up within the beer category.
Beyond core beer, AB InBev is steadily expanding its Beyond Beer portfolio, encompassing ready-to-drink offerings, such as canned wines and cocktails, along with hard seltzers, ciders and flavored malt beverages. This diversification strategy is enhancing relevance across occasions and consumer segments, while providing an incremental growth runway and supporting top-line momentum. The Zacks Consensus Estimate for AB InBev’s 2026 sales and earnings suggests growth of 8.6% and 17.4% from the year-ago period’s reported figures. The consensus mark for the company’s 2026 earnings has moved up by a penny in the past seven days. The Zacks Rank #3 stock has rallied 27% in the past year.
Constellation Brands: The Victor, NY-based third-largest beer company and a leading, high-end wine company in the United States continues to benefit from a sharp focus on brand building and a steady cadence of innovation. The company’s premiumization strategy remains a key growth driver, led by the sustained strength of the Modelo and Corona brand families, and continued traction across its Power Brands portfolio. Its beer business is benefiting from premium and above-premium trends, supported by growth in traditional beer and adjacent categories, such as flavored beer, seltzers, RTD spirits and flavored malt beverages.
STZ is actively investing to extend the momentum of its Power Brands, aligning innovation with evolving consumer preferences and delivering successful product launches. Meanwhile, the company’s digital momentum continues to build through platforms such as Instacart, Drizly and retailer-owned channels, reflecting consumers’ growing preference for convenience-driven purchasing. The Zacks Consensus Estimate for STZ’s fiscal 2027 earnings per share has moved down 0.3% in the past 30 days. The consensus estimate for fiscal 2027 earnings suggests a decline of 0.1% from the year-ago period’s reported figure. The Zacks Rank #3 stock has lost 19% in the past year.
Brown-Forman:Based in Louisville, KY, this is a global spirits company that manufactures, distills, bottles, imports, exports, markets and sells a broad portfolio of premium alcoholic beverages. The company’s growth strategy is anchored in premiumization, with a clear focus on high-quality, premium and super-premium spirits that support brand equity and margin resilience. The portfolio has been streamlined around core power brands such as Jack Daniel’s and Woodford Reserve, complemented by successful additions like the Jack Daniel’s and Coca-Cola RTD, and the integration of super-premium labels Gin Mare and Diplomático.
Emerging markets continue to provide a strong growth offset, driven by rising middle-class demand and momentum across the Jack Daniel’s family. Disciplined pricing, innovation, distribution evolution and tighter cost-control underpin long-term value creation despite near-term pressures. The Zacks Consensus Estimate for BF.B’s fiscal 2027 sales and earnings suggests growth of 0.5% and 9.2%, respectively, from the year-ago period’s reported figures. The consensus mark for the Zacks Rank #3 company’s fiscal 2026 earnings has been unchanged in the past 30 days. BF.B has declined 5.2% in the past year.
Molson Coors:The stock of this Chicago, IL-based leading beverage company has declined 19.1% in the past year. TAP is on track with its revitalization plan, focused on achieving sustainable top-line growth by streamlining its organization and reinvesting resources into its brands and capabilities. Investments, partnerships and product launches, which are part of its revitalization plan, have been aiding the company.
Molson Coors has been committed to increasing its market share through innovation and premiumization. Intending to accelerate portfolio premiumization, TAP has been aggressively growing its above-premium portfolio in the past few years. The Zacks Consensus Estimate for Molson Coors’ 2026 EPS has been unchanged in the past 30 days. The consensus estimate for the Zacks Rank #3 company’s 2026 sales and earnings suggests declines of 0.7% and 11.3%, respectively, from the year-ago period’s reported figures.
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The S&P 500 (^GSPC -0.22%) fell 0.23% to 7,801 as investors pulled back from record levels, while the Nasdaq Composite (^IXIC -0.22%) slipped 0.22% to 27,539 and the Dow Jones Industrial Average (^DJI -0.66%) lost 0.66% to 51,180.
Gold prices fell 1.34% to $4,130.80 as of U.S. market close, the 10-Year Treasury yield declined 0.04% to 5.27%, and Utilities led the session while Real Estate lagged and Technology remained a notable gainer.
Today's biggest movesCaterpillar (CAT -5.75%) shares fell 5.7% after a broker downgrade to hold, and Constellation Brands (STZ +2.35%) slid after reaffirming its annual profit forecast. Conversely, Intel (INTC +0.55%) gained on news regarding its Terafab project while Nvidia (NVDA -0.74%) attracted interest following reports of a potential multi-billion-dollar chip deal with SpaceX.
What this means for investorsThe Dow's 0.7% decline was almost entirely one stock. Caterpillar's 5.7% drop removed 295 points, roughly 86% of the index's loss. Price-weighted indexes care more about share price than total market value. Take out Caterpillar's move and the Dow matches the other two at roughly flat.
The rest of the day was a shrug with interesting corners. Micron Technology (MU +4.06%) rose 4.1% and led both of the cap-weighted major indexes higher. Nvidia (NVDA -0.74%) and Space Exploration Technologies (SPCX -2.51%) both fell on reports of a multibillion-dollar chip deal between them, which is a strange reaction to good news.
The thing to watch isn't today's dip. It's the 30-year Treasury yield at a 24-year high, quietly raising the cost of everything.
Anders Bylund has positions in Intel, Micron Technology, and Nvidia. The Motley Fool has positions in and recommends Caterpillar, Intel, Micron Technology, and Nvidia. The Motley Fool recommends Constellation Brands. The Motley Fool has a disclosure policy.
Constellation Brands (NYSE:STZ – Get Free Report) updated its FY 2027 earnings guidance on Tuesday morning. The company provided earnings per share (EPS) guidance of 11.200-11.900 for the period, compared to the consensus EPS estimate of 11.740. The company issued revenue guidance of -.
Constellation Brands Stock Performance Constellation Brands stock opened at $116.36 on Wednesday. Constellation Brands has a 1-year low of $110.60 and a 1-year high of $168.60. The company has a current ratio of 0.91, a quick ratio of 0.48 and a debt-to-equity ratio of 1.06. The firm has a market capitalization of $19.87 billion, a PE ratio of 11.10, a price-to-earnings-growth ratio of 2.25 and a beta of 1.75. The firm’s 50 day simple moving average is $126.30 and its 200 day simple moving average is $138.65.
Constellation Brands (NYSE:STZ – Get Free Report) last released its quarterly earnings results on Tuesday, October 6th. The company reported $3.74 EPS for the quarter, beating analysts’ consensus estimates of $3.55 by $0.19. The firm had revenue of $2.63 billion during the quarter, compared to analyst estimates of $2.54 billion. Constellation Brands had a net margin of 18.87% and a return on equity of 25.58%. The business’s revenue for the quarter was up 6.1% on a year-over-year basis. During the same period in the previous year, the business earned $3.63 EPS. Constellation Brands has set its FY 2027 guidance at 11.200-11.900 EPS. As a group, analysts expect that Constellation Brands will post 11.81 earnings per share for the current fiscal year.
Constellation Brands Dividend Announcement The firm also recently announced a quarterly dividend, which will be paid on Friday, November 13th. Shareholders of record on Friday, October 30th will be paid a $1.03 dividend. This represents a $4.12 dividend on an annualized basis and a yield of 3.5%. The ex-dividend date is Friday, October 30th. Constellation Brands’s dividend payout ratio is currently 39.31%. Analyst Upgrades and Downgrades STZ has been the topic of several recent analyst reports. Jefferies Financial Group lowered their price target on Constellation Brands from $147.00 to $135.00 and set a “hold” rating on the stock in a report on Monday, September 14th. Citigroup restated a “negative” rating on shares of Constellation Brands in a research report on Wednesday. Bank of America lowered their price target on Constellation Brands from $152.00 to $145.00 and set an “underperform” rating on the stock in a research report on Thursday, July 2nd. JPMorgan Chase & Co. reduced their price objective on Constellation Brands from $165.00 to $133.00 and set a “neutral” rating on the stock in a research report on Friday, September 25th. Finally, TD Cowen dropped their target price on Constellation Brands from $174.00 to $150.00 and set a “buy” rating for the company in a research report on Thursday, September 17th. Ten analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and three have given a Sell rating to the company’s stock. According to data from MarketBeat, the company has an average rating of “Hold” and a consensus target price of $157.40.
Check Out Our Latest Research Report on STZ
Key Headlines Impacting Constellation Brands Here are the key news stories impacting Constellation Brands this week:
Positive Sentiment: Constellation reported adjusted EPS of $3.74, above the roughly $3.55 consensus estimate, while revenue rose 6.1% year over year to $2.63 billion, exceeding expectations. Beer sales increased 5%, and wine and spirits sales climbed 17%. Reuters earnings report Positive Sentiment: The company acquired spirit-based ready-to-drink brand SpikedAde for $75 million upfront, with potential contingent payments of up to $278 million. Management said the deal expands STZ’s exposure to the fast-growing RTD category. SpikedAde acquisition announcement Positive Sentiment: Some analysts remain constructive, pointing to STZ’s comparatively low valuation, strong cash generation, dividend and better-than-expected quarterly results. Wells Fargo maintained an overweight rating, although it reduced its price target to $140 from $170. Neutral Sentiment: Constellation maintained fiscal 2027 adjusted EPS guidance of approximately $11.20 to $11.90, broadly around analyst expectations but without raising its outlook. The company also declared a $1.03 quarterly dividend and has continued repurchasing shares. Negative Sentiment: Full-year revenue guidance of about $9 billion at the midpoint was below Wall Street expectations, reinforcing concerns about slowing demand and limited near-term growth. Negative Sentiment: Demand for flagship brands weakened: Modelo Especial depletions fell roughly 2% and Corona Extra volume declined about 5%. The declines overshadowed growth from Pacifico, Victoria and Modelo Chelada, raising concerns about the sustainability of STZ’s core beer business in a softer consumer environment. Barron’s stock movers report (Get Free Report)
Constellation Brands, Inc is a beverage alcohol company that develops, markets and distributes beer, wine and spirits. Its portfolio includes well-known beer brands such as Modelo Especial, Corona Extra, Corona Light and Pacifico, along with wine brands including Robert Mondavi, Kim Crawford, Meiomi, The Prisoner Wine Company and Ruffino.
The company also offers spirits through brands such as Casa Noble tequila and High West whiskey. Constellation’s products are sold through retailers, distributors, restaurants and other on-premise locations, with a primary focus on the United States.
Further Reading Five stocks we like better than Constellation Brands Allient’s Data Center and Defense Momentum Is Raising the Stakes Constellation Energy’s Google Deal Shows Why Nuclear Uprates Matter for AI Lamb Weston’s Turnaround Is Starting to Look Real These 3 Stocks Got the Most Love From Analysts in September
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What happened Constellation Brands, Inc. (NYSE: STZ) reported second-quarter fiscal 2027 reported EPS of $3.32, up 25%, and comparable EPS of $3.74, up 3%. Net sales rose 6% to $2.63 billion, while operating income fell 8% to $805 million. The company said beer posted 5% net sales growth and 1% operating income growth. Wine and spirits posted 17% net sales growth and 131% operating income growth.
The company raised fiscal 2027 reported EPS outlook to $11.85 – $12.55 and kept its comparable EPS, operating cash flow and free cash flow targets unchanged. Year to date, operating cash flow was $1.5 billion and free cash flow was $1.1 billion. The company also repurchased $530 million of shares year to date and returned more than $800 million to shareholders through buybacks and dividends.
The board declared a quarterly cash dividend of $1.03 per share, payable November 13, 2026, to stockholders of record at the close of business on October 30, 2026. After the quarter, the company acquired SpikedAde for $75 million at close and up to $278 million more over five years. The company said the deal does not affect fiscal 2027 outlook. Key numbers Metric Latest Change Source Reported EPS $3.32 from $2.65, +25% Second-quarter fiscal 2027 financial highlights Comparable EPS $3.74 from $3.63, +3% Second-quarter fiscal 2027 financial highlights Net sales $2.63 billion from $2.48 billion, +6% Second-quarter fiscal 2027 financial highlights Operating income $805 million from $874 million, -8% Second-quarter fiscal 2027 financial highlights Operating cash flow $1.48 billion from $1.49 billion, -1% Consolidated statements of cash flows Read more: Constellation Brands (STZ) stock analysis and investment case
Why it matters OptimistFi's case is that Constellation Brands turns premium beer, wine and spirits brands into durable cash flow that funds capital returns. This filing strengthens that view. OptimistFi calculates that six-month operating cash flow slipped $10.7 million to $1.48 billion from a year earlier.
The quarter was not a clean volume-and-margin step up. Beer depletions fell 0.6% and reported operating income fell 8%. SpikedAde also adds a new brand and up to $278 million in contingent consideration, so the acquisition still has to prove itself.
Browse: stock research on every company OptimistFi covers
What's next The next dated item in the filing is the November 13, 2026 dividend payment for holders of record on October 30, 2026. If the company keeps generating cash while funding buybacks, dividends and the SpikedAde earnout, that supports the stock's case.
More from OptimistFi STZ stock: the Constellation Brands thesis, its status and the next test to watch United States Brent Oil Fund, LP (NYSE Arca: BNO) Tracks a Supply Gap Alpha Teknova, Inc. (NASDAQ: TKNO) Adds Regulatory Support for PluriFreeze Meta Platforms, Inc. (NASDAQ: META) Has a Conditional $18 Billion Bill Stock research on every company OptimistFi covers Latest stock research and investment-case updates OptimistFi: evidence-first equity research Sources SEC 8-K earnings release — Constellation Brands second-quarter fiscal 2027 earnings release, guidance update, dividend declaration and SpikedAde acquisition disclosure. SEC filing Read the full OptimistFi thesis on Constellation Brands, Inc.: https://optimistfi.com/stocks/STZ
See what would break the Constellation Brands, Inc. thesis and track it live on the OptimistFi Thesis-Break Engine.
Browse every company OptimistFi covers at optimistfi.com/stocks, or read the latest evidence-first research.
The full Constellation Brands, Inc. investment case, its status and the next test to watch live on the Constellation Brands, Inc. thesis page.
Originally published on OptimistFi, evidence-first equity research. More at optimistfi.com.
Against a challenging backdrop for beer and alcohol stocks, Constellation Brands (STZ +2.14%) reported better-than-expected results in its second-quarter earnings report. However, the stock was trading flat on Wednesday morning, showing that investors are still concerned about headwinds in the beer industry.
The company, which is best known as the domestic seller of Corona and Modelo, reported organic revenue growth of 6% to $2.63 billion, which easily beat expectations at $2.54 billion.
However, looking under the hood, the growth numbers were not as strong as they might seem. Beer shipments, which measure sell-in to distributors and are recorded as revenue, rose 5.5%, while depletions, which better reflect consumer demand and measure sales from the distributor to the retailer, were down 0.6%. CEO Nicholas Fink explained that intentional distributor restocking to rebuild inventory drove the strong growth in shipments.
Its wine and spirits business, which is much smaller, saw strong growth in both shipments and depletions due to its efforts to reposition its portfolio around higher-end brands like Mi CAMPO tequila and Kim Crawford wines.
On the bottom line, the company reported adjusted earnings per share of $3.74, up 3% from a year ago, and ahead of the consensus at $3.55.
Constellation mostly reaffirmed its full-year guidance from the first quarter, calling for organic net sales between -1% and +1% and adjusted earnings per share of $11.20-$11.90, ahead of the consensus of $11.71.
However, there were some surprising changes in its beer sales mix.
Image source: Getty Images.
Are Corona and Modelo being replaced?Modelo and Corona are the company's two biggest brands, but both saw depletion declines of 2% and 5%, respectively. The company blamed weak off-premise retail sales during the World Cup and headwinds from a broader pullback in consumer spending due to concerns about inflation.
However, the company did see strength in smaller brands like Pacifico, which jumped 19%, and Victoria, up 15%. Pacifico is now a top-10 beer brand in the U.S., and that growth continued a strong performance in the first quarter. Pacifico has become trendy among younger consumers, especially in beach and surf cultures, who are looking for an alternative to something like Corona, which has established itself as mainstream.
Victoria is much smaller, but its distribution expansion in states like Texas and California is promising as well. Finally, Modelo Chelada depletions were up 5%, showing the company is having success at spinning off its premier brand into new flavors.
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While the weakness in Corona and Modelo is disappointing, the strength of those smaller brands meant the company gained 0.8% market share in the quarter, according to Circana, the largest share gain in the U.S.
Constellation can't control the broader market or general consumer demand, but that's a significant market share gain, and the strength of Pacifico bodes well for the company's future, as it could give it a third mega-brand.
I'd like to see the company get back to positive depletion growth in the beer business, but this is the most promising quarter we've seen from Constellation in some time.
Constellation Brands, Inc. (STZ) Q2 2027 Earnings Call October 7, 2026 8:00 AM EDT
Company Participants
Blair Veenema - Vice President of Investor Relations
Nicholas Fink - President, CEO & Director
Garth Hankinson - Executive VP & CFO
Conference Call Participants
Nik Modi - RBC Capital Markets, Research Division
Peter Galbo - BofA Securities, Research Division
Lauren Lieberman - Barclays Bank PLC, Research Division
Christopher Carey - Wells Fargo Securities, LLC, Research Division
Bonnie Herzog - Goldman Sachs Group, Inc., Research Division
Kaumil Gajrawala - Jefferies LLC, Research Division
Filippo Falorni - Citigroup Inc., Research Division
Dara Mohsenian - Morgan Stanley, Research Division
Robert Ottenstein - Evercore ISI Institutional Equities, Research Division
Stephen Robert Powers - Deutsche Bank AG, Research Division
Carlos Alberto Laboy - HSBC Global Investment Research
Presentation
Operator
Ladies and gentlemen, thank you for standing by. Greetings, and welcome to the Constellation Brands Fiscal Year 27 Second Quarter Earnings Call. [Operator Instructions] Please note that today's conference is being recorded.
At this time, I'll now turn the conference over to Blair Veenema, Vice President of Investor Relations. Thank you. You may now begin.
Blair Veenema
Vice President of Investor Relations
Thank you, Rob, and good morning all. Welcome to Constellation Brands Q2 Fiscal '27 Conference Call. I'm joined this morning by Nick Fink, our CEO; and Garth Hankinson, our CFO. Before we proceed, we trust you had the opportunity to review the news release and CEO, CFO commentary made available in the Investors section of our company's website, www.cbrands.com.
On that note, as a reminder, reconciliations between the most directly comparable GAAP measure and any non-GAAP financial measures discussed on this call are included in the news release and website. We also encourage you to refer to the news release and Constellation's SEC filings for risk factors that may impact forward-looking statements made on this call.
Key Takeaways Constellation Brands posted Q2 EPS of $3.74 as net sales rose 6% to $2.63 billion.Beer sales grew 5%, while wine and spirits sales jumped 17% on higher shipment volumes.STZ reaffirmed fiscal 2027 comparable EPS guidance of $11.20-$11.90 and cash flow targets. Constellation Brands, Inc. (STZ - Free Report) reported second-quarter fiscal 2027 comparable earnings of $3.74 per share, up 3% year over year and above the Zacks Consensus Estimate of $3.62. The bottom line delivered a 3.3% earnings surprise.
Net sales increased 6% year over year to $2.63 billion, surpassing the consensus estimate of $2.57 billion by 2.5%. Growth across both operating businesses supported the top line. Beer shipment volumes rose 5.5%, while the wine and spirits’ business’ volume increased 15.4%.
Despite robust quarterly results, Constellation Brands’ shares have lost more than 4% in after-hours trading yesterday. In the past three months, the stock has fallen 10.6% compared with the industry’s 1.9% drop.
Image Source: Zacks Investment Research
STZ's Beer Business Drives Sales GrowthBeer net sales increased 5% year over year to $2.5 billion, driven by a 5.5% increase in shipment volumes. Depletions, which measure distributor shipments to retail customers, dipped 0.6%. Beer sales have outpaced the Zacks Consensus Estimate of $2.4 billion.
Modelo Especial depletions fell about 2%, while Corona Extra declined roughly 5%. These decreases were partially offset by growth of roughly 19% for Pacifico, 15% for Victoria and 5% for the Modelo Chelada brands. The Beer business was the top dollar and volume share gainer across Circana U.S. tracked channels.
Constellation Brands’ Wine and Spirits Business ImprovesWine and spirits net sales advanced 17% year over year to $159.4 million, reflecting a 15.4% increase in shipment volumes. The business also delivered depletion growth of 10.2%. Wine and spirits’ net sales have surpassed the Zacks Consensus Estimate of $136 million.
Kim Crawford and Mi CAMPO depletions increased roughly 11% and 51%, respectively. The portfolio outperformed the broader wine and spirits category in both dollars and volumes across Circana U.S. tracked channels, while the company's wine portfolio ranked as the #3 dollar share gainer in the overall wine category.
STZ's Operating Profitability Shows Mixed TrendsComparable operating income rose 1% year over year to $896.6 million. Comparable operating margin contracted 160 basis points from the prior-year quarter to 34.1%.
Beer operating income increased 1% to $964.2 million, but its operating margin fell 160 basis points year over year to 39%. Lower tariff expenses and fixed-cost absorption were more than offset by higher marketing investment and other selling, general and administrative spending. Wine and spirits generated operating income of $6.1 million against a loss of $19.8 million a year earlier, lifting its margin to 3.8%.
Constellation Brands Maintains Strong Cash GenerationFor the first six months of fiscal 2027, operating cash flow totaled $1.5 billion. Free cash flow increased to $1.1 billion, while capital expenditures were $354.1 million.
As of Aug. 31, 2026, cash and cash equivalents were $98.5 million. Long-term debt, excluding current maturities, totaled $9.1 billion. The company repurchased $530 million of shares year to date through September and returned more than $800 million to shareholders through repurchases and dividends during the first half.
On Oct. 6, 2026, the company’s board declared a quarterly cash dividend of $1.03 per share of Class A common stock payable Nov. 13, 2026, to stockholders of record as of Oct. 30, 2026.
Constellation Brands Expands Its RTD PortfolioSubsequent to the quarter, the company acquired SpikedAde, a spirit-based ready-to-drink brand competing in the emerging sports drink-inspired "Ade" segment. Constellation Brands paid $75 million at closing for full ownership, with up to $278 million of additional contingent consideration payable over five years based on future performance.
SpikedAde will be integrated into Constellation's Beer unit, with the company assuming production oversight, marketing and distribution.
STZ Reaffirms Comparable Earnings OutlookConstellation Brands reaffirmed its fiscal 2027 comparable earnings guidance of $11.20-$11.90 per share compared with $11.82 in fiscal 2026. It raised its reported earnings outlook to $11.85-$12.55 from the prior range of $11.50-$12.20.
Management continues to expect enterprise organic net sales to range from a 1% decline to 1% growth. Beer net sales and organic wine and spirits net sales are also projected to range from a 1% decline to 1% growth. Comparable enterprise operating margin is expected to be between 32% and 33%, with beer margin of 37-38% and wine and spirits margin of 5-6%.
Management expects operating cash flow of $2.4-$2.5 billion, capital expenditures of $800 million and free cash flow of $1.6-$1.7 billion for fiscal 2027.
Stocks to Consider in the Consumer Staples Space The Chefs' Warehouse, Inc. (CHEF - Free Report) , which is a distributor of specialty food products in the United States, currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Chefs' Warehouse's current financial-year sales indicates growth of 10.8% from the prior-year level. CHEF delivered a trailing four-quarter earnings surprise of 30.4%, on average.
Utz Brands, Inc. (UTZ - Free Report) , which is a leading manufacturer of a diverse portfolio of salty snacks, currently carries a Zacks Rank #2 (Buy). UTZ delivered a trailing four-quarter earnings surprise of 1.8%, on average.
The Zacks Consensus Estimate for UTZ’s current financial-year sales indicates a jump of 3.7% from the year-ago number.
Darling Ingredients Inc. (DAR - Free Report) , which produces sustainable natural ingredients derived from edible and inedible bio-nutrients, currently carries a Zacks Rank of 2.
The consensus estimate for Darling Ingredients’ current financial-year sales is expected to rise 11.5% from the year-ago reported figure. DAR delivered a trailing four-quarter earnings surprise of 38.9%, on average.
Constellation Brands: Beer Growth and Buybacks Mask Stock's SlumpConstellation Brands NYSE: STZ reiterated its fiscal 2027 outlook after reporting second-quarter results that Chief Executive Officer Nick Fink said exceeded the company’s expectations. The company maintained its comparable earnings-per-share guidance of $11.20 to $11.90 and said it could finish at the high end of that range if favorable September trends continue.
Fink said the company’s beer business accelerated meaningfully from the prior quarter and that Constellation was the top dollar-share gainer in beverage alcohol during the period. He also pointed to marketing-led improvements across the portfolio, healthier distributor inventories and stronger September depletion trends.
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Willing and Abel: Berkshire's New CEO Makes Huge Portfolio Changes in Q1“If the positive September trends that we saw continue, we would expect to land at the high end of that range,” Fink said. He added that reaching the low end of the guidance range would require “a real reversal in trends” from current conditions.
Inventory Rebuild Nears Normal Levels A major focus during the first half of the fiscal year was rebuilding beer inventory at distributors after what management characterized as an overcorrection in fiscal 2026. Fink said Constellation entered fiscal 2027 with inventory levels that were too low, testing the lower limits of days on hand and creating supply-chain inefficiencies as the company worked to keep shelves stocked.
Spirits on the Rocks? The Battle for Jack DanielsThe company increased shipments to close distributor order backlogs and reduce the risk of out-of-stocks. Fink said distributor inventories are now in a “great position,” though still below historical averages.
For the full fiscal year, Constellation expects shipments and depletions to track within 99% of one another. Management said the second half should resemble a more typical seasonal pattern after the inventory rebuilding effort in the first half.
Chief Financial Officer Garth Hankinson said the company would have exceeded its expectations for the second quarter even without the elevated shipments associated with the inventory rebuild, supporting management’s confidence in its outlook.
Marketing Investment Supports Portfolio Growth Fink said Constellation’s increased marketing investments are producing early signs of improvement, particularly for its larger beer brands. He said Corona has benefited from more focused execution, with share stabilizing and shorter-term Circana trends improving relative to longer-term data.
Management described the company’s approach as increasingly granular, emphasizing brand relevance, distribution, pack-price architecture and activation at consumer occasions rather than relying solely on broad awareness campaigns.
Fink said Modelo has stabilized, while the company sees opportunities to build awareness in the middle of the country through programming tied to college football. He also said Pacifico became a top-10 beer brand and is growing at roughly a 20% rate year to date, while Victoria is also posting mid-teens growth.
Constellation expects marketing spending to represent about 10% of net sales in the second half, with spending above 11% of net sales in the third quarter as it supports Major League Baseball and NCAA football programming. Hankinson said the company believes its full-year marketing investment is at a healthy level after likely underspending in recent years.
Fink said the company’s World Cup-related programming demonstrated that sports can serve as a broader engagement platform, even though the event did not meet industry expectations. He said Constellation generated three times more beer market-share gains than the next-best competitor during the event, with 400 basis points of outperformance versus the category.
Margins, Costs and Veracruz Hankinson said the company expects beer operating margins of 34.5% to 35.5% in the second half, which he described as normal seasonally because the latter half of the year has lower volumes and less fixed-cost absorption. Maintenance capital expenditures are also expected to affect margins during that period.
The company expects selling, general and administrative expenses to be about 7% of sales in the second half, driven in part by short-term incentive compensation comparisons with the prior year. Management also plans to continue supporting brands with marketing investments.
Constellation is progressing on its Veracruz brewery project, which is about 85% complete, according to Hankinson. The company now expects to bring the facility into service in the early part of fiscal 2028. Once operational, Veracruz is expected to create approximately $75 million of annualized depreciation expense, or about a 90-basis-point annualized margin headwind.
Hankinson said Constellation is highly hedged on commodities and currencies for the current fiscal year, generally at or above 90%, while diesel is fully hedged. The company has also added hedges for fiscal 2028 and beyond during periods of market weakness.
Fink said Constellation intends to become more systematic in pursuing cost savings. The company has generated about $600 million in efficiencies since its investor day, he said, but management sees further opportunity through a multiyear continuous-improvement program designed to sustain margins and fund growth investments.
Capital Returns and Selective M&A Constellation repurchased $530 million of stock year to date and has $2.5 billion remaining under its share-repurchase authorization through fiscal 2028. Hankinson said the company will continue its programmatic approach to buybacks while retaining the flexibility to accelerate repurchases when it sees a disconnect between the share price and intrinsic value.
Management also highlighted its acquisition of SpikedAde as an example of its approach to mergers and acquisitions. Fink said the ready-to-drink brand is expected to approach 2 million cases in calendar 2026 and should contribute to growth next year. He said the deal was completed at a cost in a similar range to developing and launching an organic innovation, but with an existing record of momentum.
While Fink said beer will remain the overwhelming driver of value creation, he said the company has capacity to pursue selected growth spaces outside its core portfolio. Constellation plans to be disciplined in evaluating ready-to-drink opportunities, emphasizing sustainability, differentiated consumer appeal, distribution potential and its ability to support brands through marketing, pricing and innovation.
About Constellation Brands (NYSE:STZ)Constellation Brands, Inc is a beverage alcohol company that develops, markets and distributes beer, wine and spirits. Its portfolio includes well-known beer brands such as Modelo Especial, Corona Extra, Corona Light and Pacifico, along with wine brands including Robert Mondavi, Kim Crawford, Meiomi, The Prisoner Wine Company and Ruffino.
The company also offers spirits through brands such as Casa Noble tequila and High West whiskey. Constellation's products are sold through retailers, distributors, restaurants and other on-premise locations, with a primary focus on the United States.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
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Constellation Brands (STZ) is experiencing an uptick in trading following its stronger-than-anticipated Q2 results, which have bolstered confidence in its FY27
Buy Constellation Brands (STZ) only if it holds the post-earnings rebound and keeps trading green after the guidance reassurance (top end of range on momentum). The immediate catalyst is management’s “top end” call tied to September momentum, which already flipped the stock back up. If the market believes momentum is real, the mean Street target (~$160) becomes a magnet.
Key Risk: September momentum fades quickly and management has to walk back the “top end” expectation, turning the rebound into another guidance-driven selloff.
STZ short (sell)
Sell Constellation Brands (STZ). Even with the Q2 beat, the core issue is still there: no full-year guidance raise initially, EPS for FY2027 is still expected to fall ($11.2–$11.9) and the stock remains below key moving averages—bears control the tape. Add the fundamental headwind: GLP-1 popularity and younger consumers reduce alcohol demand, and beer margins aren’t great. The $75M SpikedAde spend is a classic “chase the fad” risk when margins are stabilizing, not expanding.
Key Risk: SpikedAde scales fast and lifts margins/cash flow enough to reverse the EPS decline, pushing STZ above moving averages and forcing analysts to raise FY2027 guidance.
Famed investor Jim Cramer has a “perfectly plausible explanation” for why Constellation Brands STZ shares initially slipped on Q2 earnings but has turned green again this morning.
The alcoholic beverage specialist recorded $3.74 per share of earnings (EPS) on $2.63 billion sales late on October 6 – both comfortably ahead of Street estimates.
As of writing, Constellation Brands stock is still down well over 15% versus the start of this year.
What helped STZ stock reverse its initial post-Q2 dip?According to the Mad Money host, investors bailed on STZ shares initially because the company did not raise its guidance for the full year.
For them, it was a signal that “this may be the last good number,” he argued on CNBC today.
However, on the earnings call this morning, management said Constellation Brands Inc will likely come in at the top end of its range given “if momentum continued in September.”
This helped the stock reclaim its after-market losses from last night.
Note that Constellation Brands expects its EPS to fall between $11.2 and $11.9 in its fiscal 2027 – while sales are seen keeping flat at the midpoint of its guided range.
Despite management’s reassurance, Jim Cramer remains bearish on Constellation brands shares – cautioning against buying them at current levels.
Amidst the rising popularity of GLP-1 weight-loss treatments, and a younger generation that treats its body as its temple, the company faces a rather challenging backdrop, he noted on “Squawk on the Street.”
Plus, beer margins are just not that great; we don’t have the growth we used to have,” which makes STZ even less attractive as a long-term holding in late 2026, he explained.
Even from a technical perspective, the beer, wines, and spirits specialist currently sits firmly below its key moving averages (MAs), indicating bears remain decisively in control across multiple time-frames.
All in all, "there are a lot of issues" with Constellation Brands, Cramer concluded.
Investors should also note that Constellation Brands is spending roughly $75 million on SpikedAde acquisition.
This risks repeating past beverage industry missteps: committing funds to category near its cyclical peak.
While ready-to-drink options dominate retail shelf space, consumer preferences in low-alcohol and flavoured beverages shift rather quickly – leaving major distributors vulnerable to sudden demand cliff-edges once initial novelty fades.
Paying $75 million upfront with a total deal potential of $353 million signals STZ may actually be overextending balance sheet flexibility to chase inorganic volume growth as beer margins stabilize.
If SpikedAde’s momentum falters under broader distribution, the transaction could stall cash flow allocation toward higher-margin core brands, yielding muted returns on a high-cost fad.
That said, Wall Street currently rates STZ stock at overweight, with a bullish mean price target of about $160.
Constellation Brands beat quarterly earnings and revenue expectations as its beer brands gained market share, but continued consumer caution tempered results.
As it navigates high food and fuel prices and choosy shoppers, Constellation is turning to special occasions and diversification to help drive sales.
The maker of Modelo Especial, Corona and Pacifico on Wednesday reported fiscal second-quarter adjusted earnings of $3.74 per share on $2.63 billion in revenue, ahead of Wall Street estimates of $3.56 and $2.54 billion, respectively.
Beer revenue rose 5% to roughly $2.47 billion, while beer shipments increased 5.5%. However, the company said beer depletions, a measure of sales from distributors to retailers and other customers, declined slightly during the quarter, indicating consumer demand was softer than shipment demands suggest.
"We have spent much of the first half rebuilding distributor inventory levels," said Constellation Brands CEO Nicholas Fink on the company's earnings call on Thursday. "While there is always going to be month-to-month variability, September depletions are trending in the right direction."
The broader backdrop remains challenging for beer sellers. U.S. beer sales fell 1.8% year over year in the two weeks ended September 19, according to Nielsen's latest data.
Still, Fink said September beer depletions improved even beyond the benefit of a later Labor Day, and that the recovery was broad-based across channels. He said consumers were "across the board" engaging in the category.
Some analysts said the results indicated elevated gas prices have dampened Constellation's performance.
“Progress [for Constellation] had accelerated to start 2026, but has been derailed by higher fuel costs,” Roth Capital analyst Bill Kirk wrote, though he said Constellation continues to deliver against its fiscal 2027 plan. Kirk has a buy rating and $209 price target on the stock, compared to the roughly $116 a share price as of Wednesday.
Fink said Constellation saw particular strength in club stores, which have benefited as cash-strapped shoppers seek deals on fuel and groceries. The company is also working to better tailor its product and pack sizes across channels, as consumers make different choices depending on where they are shopping, and for what occasion.
That focus on events also extends to younger drinkers. Fink said consumers are increasingly buying beer for specific moments, rather than treating it as a default purchase, and Constellation is leaning into sports, music, beach activations and other occasions to drive sales.
The company's pricing strategy reflects consumer caution around spending.
CFO Garth Hankinson said Constellation has been selective with price increases, keeping them at the low end of its usual range given the "macroeconomic backdrop and the impact that that's having on our consumer." Hankinson said it is "much more cost-effective to retain your consumers than it is to try to regain your consumers."
That price sensitivity is especially important for Constellation, given its reliance on Hispanic shoppers. About 40% of spending on Constellation's beer comes from Hispanic consumers, compared with roughly 15% for the overall beer category, according to company data.
That cohort has faced more economic concerns, including pressure from the labor market and household finances in part fueled by President Donald Trump's mass deportation policy. Constellation has previously said that beer demand has been weaker in areas with larger Hispanic populations, although it has also pointed to improving trends in some markets.
Constellation is also moving beyond its core beer business. The company announced Tuesday that it would acquire SpikedAde, a spirit-based ready-to-drink beverage brand, for $75 million upfront, with up to another $278 million in potential payments tied to future performance.
The deal gives Constellation a foothold in a new segment that has drawn more interest from consumers. Fink said the company aims to "remain relevant to our consumers and to our customers," adding that distributors have urged Constellation to get into growing categories beyond beer.
Some analysts approved of the move, as well.
"We consider the acquisition attractive, giving [Constellation] exposure to the fast-growing RTD subcategory," said Piper Sandler analyst Michael Lavery, who also noted that Stateside Vodka's competing Super Lyte brand has also had "a very strong start" on the East Coast.
Lavery has a neutral rating and $161 price target on Constellation's stock.
While Fink said beer will remain the company's primary source of value creation, he called SpikedAde a "long, wide-open runway" for Constellation's brand-building and distribution capabilities.
According to the Distilled Spirits Council of the United States, sales of premixed cocktails including spirits-based RTDs grew 16.4% in 2025 to $3.8 billion, making them the spirits industry's strongest growth category.
U.S. stock futures were lower this morning, with the Dow futures falling around 200 points on Wednesday.
Shares of Constellation Brands, Inc. (NYSE:STZ) fell in pre-market trading following second-quarter results.
Constellation Brands reported quarterly earnings of $3.74 per share which beat the analyst consensus estimate of $3.56 per share. The company reported quarterly sales of $2.633 billion which beat the analyst consensus estimate of $2.542 billion.
The company also announced the acquisition of spirit-based ready-to-drink brand SpikedAde.
Constellation Brands shares dipped 5.1% to $110.10 in pre-market trading.
Here are some other stocks moving lower in pre-market trading.
Caribou Biosciences, Inc. (NASDAQ:CRBU) shares dipped 35.7% to $0.7301 in pre-market trading after the company announced it is exploring strategic alternatives and plans to discontinue its two cell therapy programs.Precigen, Inc. (NASDAQ:PGEN) shares declined 7.3% to $7.00 in pre-market trading.LiveWire Group, Inc. (NYSE:LVWR) dipped 6.1% to $1.5403 in pre-market trading after climbing over 10% on Tuesday.Cypherpunk Technologies Inc. (NASDAQ:CYPH) fell 5.5% to $3.08 in pre-market trading following a 3% gain on Tuesday.Gilat Satellite Networks Ltd. (NASDAQ:GILT) fell 5.4% to $8.72 in pre-market trading.Harmony Gold Mining Company Limited (NYSE:HMY) fell 4.8% to $16.49 in pre-market trading.Sibanye Stillwater Limited (NYSE:SBSW) fell 4.4% to $9.57 in pre-market trading.Ascentage Pharma Group (NASDAQ:AAPG) declined 3.7% to $15.50 in pre-market trading after surging 10% on Tuesday.Photo via Shutterstock
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Constellation Brands Inc (NYSE:STZ), the beverage company behind Modelo Especial and Corona, beat second-quarter estimates as stronger beer sales and growing wine and spirits demand helped offset a softer alcohol market.
Net sales rose 6% to $2.63 billion in the quarter ended August 31, while comparable operating income increased 1% to $897 million and comparable earnings rose 3% to $3.74 a share.
Beer sales increased 5% and operating income rose 1%, while the division gained more than 0.8 percentage points of dollar share in the US beer market tracked by Circana.
Beer depletions, a measure of sales from distributors to retailers, fell 0.6%, with lower demand for Modelo Especial and Corona Extra partly offset by stronger sales of Pacifico, Victoria and Modelo Chelada brands.
Constellation’s wine and spirits division delivered stronger growth, with net sales rising 17% and depletions increasing 10.2% as its higher-end portfolio gained momentum.
The company said its beer business was the leading dollar and volume share gainer during the quarter, while its wine portfolio ranked third among dollar share gainers in the total US wine category.
Constellation also returned more than $800 million to shareholders through share repurchases and dividends during the first half of fiscal 2027, including $530 million of share buybacks through September.
The company reaffirmed its fiscal 2027 comparable earnings forecast of $11.20 to $11.90 a share and organic sales outlook ranging from a 1% decline to 1% growth.
It lowered its full-year operating margin forecast to 31% to 32% from 32% to 33%, while continuing to invest in marketing and other growth initiatives.
Constellation shares fell 4.5% in premarket trading Wednesday but gained around 1.7% at the opening bell.
U.S. stocks traded lower this morning, with the Dow Jones index falling around 350 points on Wednesday.
Following the market opening Wednesday, the Dow traded down 0.69% to 51,166.67 while the NASDAQ declined 0.54% to 27,451.57. The S&P 500 also fell, dropping, 0.41% to 7,787.18.
Leading and Lagging Sectors
Energy shares jumped by 1% on Wednesday.
In trading on Wednesday, materials stocks fell by 1.1%.
Top Headline
Constellation Brands, Inc. (NYSE:STZ) posted better-than-expected second-quarter results, after the closing bell on Tuesday.
Constellation Brands reported quarterly earnings of $3.74 per share which beat the analyst consensus estimate of $3.56 per share. The company reported quarterly sales of $2.633 billion which beat the analyst consensus estimate of $2.542 billion.
The company also announced the acquisition of spirit-based ready-to-drink brand SpikedAde.
Equities Trading UP
China SXT Pharmaceuticals Inc (NASDAQ:SXTC) shares shot up 114% to $2.68. Shares of Baiya International Group Inc (NASDAQ:BIYA) got a boost, surging 58% to $2.16. Lipocine Inc (NASDAQ:LPCN) shares were also up, gaining 41% to $2.97 after the company announced that Health Canada approved TLANDO for testosterone replacement therapy in adult males. Equities Trading DOWN
Caribou Biosciences Inc (NASDAQ:CRBU) shares dipped 47% to $0.60 after the company announced it is exploring strategic alternatives. Shares of VCI Global Ltd (NASDAQ:VCIG) were down 45% to $0.78. Innventure Inc (NASDAQ:INV) was down, falling 30% to $0.40. Innventure recently announced a partnership between its AeroFlexx unit and ZXP Technologies to expand industrial liquid packaging technology across various sectors. Commodities
In commodity news, oil traded up 0.8% to $90.14 while gold traded down 2% at $4,105.20.
Silver traded down 3.7% to $59.295 on Wednesday, while copper fell 0.5% to $6.6185.
Euro zone
European shares were lower today. The eurozone’s STOXX 600 fell 0.9%, while Spain’s IBEX 35 Index dipped 1.8%, London’s FTSE 100 declined 0.6%, Germany’s DAX declined 1.3%, while France’s CAC 40 tumbled 1.1%.
Asia Pacific Markets
Asian markets closed lower on Wednesday, with Japan’s Nikkei 225 falling 0.92%, Hong Kong’s Hang Seng Index declining 0.62% and India’s BSE Sensex dropping 0.59%.
Economics
The volume of mortgage applications dropped by 4.2% in the week ending Oct. 2, recording the fifth straight decline.
Photo via Shutterstock
Market News and Data brought to you by Benzinga APIs
Americký výrobce piva, vína a lihovin Constellation Brands zveřejnil výsledky hospodaření za druhý kvartál fiskálního roku 2027, který skončil 31. srpna 2026. Tržby i porovnatelný zisk na akcii mírně překonaly očekávání Wall Street. Firma však navzdory tomu pouze potvrdila celoroční výhled u porovnatelných metrik, což podle analytiků pravděpodobně zklamalo investory. Společnost zároveň oznámila akvizici značky SpikedAde.
Výsledky společnosti Constellation Brands (STZ) za 2Q FY 2027 2Q FY 2027 Konsensus 2Q 2027 2Q FY 2026 Porovnatelné tržby (mld. USD) 2,63 2,53 2,48 Čistý zisk (mld. USD) 0,57 -- 0,47 Porovnatelný zisk na akcii (EPS, USD/akcie) 3,74 3,53 3,63 Výsledky za 2Q Porovnatelné tržby zaznamenaly meziroční růst o 6 % na 2,63 mld. USD, což bylo mírně nad očekáváním 2,53 mld. USD.
Porovnatelný provozní zisk meziročně vzrostl o 1 % na 897 mil. USD při konsensu 872,3 mil. USD.
Od začátku fiskálního roku 2027 společnost vygenerovala provozní hotovostní toky ve výši 1,5 mld. USD, což je meziročně o 1 % méně. Volné hotovostní toky dosáhly 1,1 mld. USD a meziročně vzrostly o 4 %.
Segment piva Tržby ze segmentu piva se meziročně zvýšily o 5 % na 2,47 mld. USD, když Wall Street projektovala 2,40 mld. USD. Tento růst byl tažen objemem dodávek piva, které meziročně vzrostly o 5,5 %, přičemž se očekával růst o 2,09 %.
Odbyt meziročně klesl o 0,6 % a odpovídal konsensu -0,61 %. Pokles u značky Modelo Especial o přibližně 2 % a u Corona Extra o zhruba 5 % byl částečně vyvážen růstem značek Pacifico, Victoria a skupiny Modelo Chelada o přibližně 19 %, 15 % a 5 % (v uvedeném pořadí).
Provozní zisk segmentu meziročně vzrostl o 1 % na 964,2 mil. USD při konsensu 924,6 mil. USD. Provozní marže segmentu meziročně klesla o 160 bazických bodů na 39,0 %. Nižší náklady na cla a příznivější absorpci fixních nákladů převážily vyšší investice do marketingu a další prodejní, všeobecné a administrativní náklady.
Segment vín a lihovin Tržby ze segmentu vína a lihovin meziročně vzrostly o 17 % na 159,4 mil. USD při konsensu 137,6 mil. USD. Růst byl tažen objemem dodávek, který byl meziročně vyšší o 15,4 %, přičemž se očekával pokles o 0,4 %. Odbyt meziročně vzrostl o 10,2 %, když konsensus byl na úrovni +6 %, a to díky růstu značek Kim Crawford a Mi CAMPO o přibližně 11 % a 51 %.
Segment reportoval provozní zisk ve výši 6,1 mil. USD. Analytici očekávali provozní ztrátu ve výši 2,51 mil. USD. Provozní marže segmentu se zlepšila na 3,8 %. Ziskovost podpořily nižší náklady na prodané zboží díky refundacím amerických cel a úspory v marketingu a dalších režijních nákladech díky optimalizačním a restrukturalizačním iniciativám.
Akvizice SpikedAde Po skončení kvartálu Constellation Brands koupila značku hotových míchaných nápojů SpikedAde. Za 100% podíl společnosti zaplatila 75 mil. USD. K tomu se přidává podmíněné plnění až 278 mil. USD, splatné během pěti let podle budoucí výkonnosti SpikedAde. Akvizice podle společnosti nemá dopad na výhled pro fiskální rok 2027.
Výhled pro FY 2027 Společnost v celém fiskálním roce 2027 nadále očekává:
Organický pokles až růst tržeb celé společnosti o -1 až +1 %. Porovnatelnou provozní marži celé společnosti ve výši 32 % až 33 %, přičemž u segmentu piva očekává 37 až 38 % a u segmentu vína a lihovin 5 až 6 %. Porovnatelný zisk na akcii v rozmezí 11,20 až 11,90 USD. Wall Street predikovala 11,72 USD. Provozní hotovostní toky ve výši 2,4 až 2,5 mld. USD. Projektovalo se 2,55 mld. USD. Volné hotovostní toky v rozmezí 1,6 až 1,7 mld. USD. Konsensus byl 1,7 mld. USD. Kapitálové výdaje přibližně 800 mil. USD. Odhad byl na úrovni 793,7 mil. USD. Výhled zisku na akcii společnost aktualizovala na 11,85 až 12,55 USD.
Návrat kapitálu akcionářům Společnost od začátku fiskálního roku do konce září zpětně odkoupila akcie za 530 mil. USD. Představenstvo deklarovalo kvartální dividendu ve výši 1,03 USD na akcii.
Komentář vedení „Během druhého kvartálu naše portfolio ikonických značek nadále oslovovalo spotřebitele. Zlepšili jsme realizaci a navýšili investice napříč celým podnikáním. Začínáme vidět první výsledky v podobě zrychlujícího se nárůstu tržního podílu v dolarech i v objemu oproti prvnímu kvartálu, a to jak v pivní divizi, tak v divizi vína a lihovin. Díky tomu jsme byli ve druhém kvartálu jedničkou v nárůstu tržního podílu v dolarech v segmentu alkoholických nápojů. Do budoucna se i nadále soustředíme na to, abychom na této dynamice stavěli. Chceme rozšiřovat náš dosah k většímu počtu spotřebitelů a příležitostí ke konzumaci a zároveň investovat do značek a schopností, které podpoří naši další fázi růstu,“ uvedl generální ředitel Nicholas Fink.
„V první polovině fiskálního roku 2027 nám silná tvorba hotovosti umožnila pokračovat v naplňování našich disciplinovaných a vyvážených priorit v alokaci kapitálu. Srovnatelnou čistou finanční páku jsme udrželi na naší cílové úrovni zhruba 3,0x. Akcionářům jsme prostřednictvím zpětných odkupů akcií a dividend vrátili více než 800 mil. USD a pokračovali jsme v investicích do podnikání prostřednictvím zvýšené marketingové podpory značek. S výhledem na druhou polovinu roku zůstáváme odhodláni podporovat dlouhodobý růst, udržovat finanční flexibilitu a vracet kapitál akcionářům,“ uvedl finanční ředitel Garth Hankinson.
Pohled analytiků Analytik Kenneth Shea z Bloomberg Intelligence uvedl, že potvrzený výhled se jeví jako příliš opatrný poté, co zisk na akcii za 2Q překonal očekávání o 6 %. Odbyt piva podle něj odpovídal odhadům, ale nadále ho tlumila přetrvávající slabá spotřebitelská poptávka.
Analytici z JPMorgan uvedli, že implikovaný výhled na druhé pololetí fiskálního roku 2027, včetně marží pivního segmentu, je pod konsensem a neutiší debatu o fiskálním roce 2028. Akvizice je podle nich v souladu s komunikací CEO o tom, že firma bude disciplinovaně usilovat o růst v nově vznikajících kategoriích, u nichž věří v udržitelnou poptávku.
Analytik Garrett Nelson z CFRA poznamenal, že investoři jsou zjevně zklamaní tím, že firma navzdory výraznému překonání očekávání nezvýšila celoroční výhled. Podle něj je však konzervativní výhled vedení jedním z důvodů, proč společnost opakovaně překonává očekávání, a to se může zopakovat i tentokrát.
Analytik Bill Kirk z Roth Capital upozornil, že potvrzený výhled naznačuje možný obrat v růstu dodávek piva ve třetím kvartálu, jelikož zásoby v odvětví jsou zvýšené. Akvizici SpikedAde považuje za strategický posun směrem k příležitostem mimo hlavní pivní portfolio.
Akcie Constellation Brands Akcie společnosti Constellation Brands (STZ) v předburzovní fázi obchodování oslabují o 6,63 % na 108 USD.
Akcie Constellation Brands (STZ) před výsledky na 115,67 USD Ukazatel Ukazatel Kapitalizace (mld. USD) 19,8 P/E 9,9 Vývoj za letošní rok (%) -16,2 Očekávané P/E 9,9 52týdenní minimum (USD) 110,6 Prům. cílová cena (USD) 158,2 52týdenní maximum (USD) 168,6 Dividendový výnos (%) 3,5 Zdroj: Constellation Brands, Bloomberg
With U.S. stock futures trading mixed this morning on Wednesday, some of the stocks that may grab investor focus today are as follows:
Wall Street expects Levi Strauss & Co. (NYSE:LEVI) to post quarterly earnings of 36 cents per share on revenue of $1.62 billion after the closing bell, according to data from Benzinga Pro. Levi Strauss shares gained 0.3% to $20.60 in after-hours trading. Caribou Biosciences Inc. (NASDAQ:CRBU) announced it is exploring strategic alternatives and plans to discontinue its two cell therapy programs. Caribou Biosciences shares dipped 35.1% to $0.74 in the after-hours trading session. Analysts are expecting Applied Digital Corp. (NASDAQ:APLD) to post a quarterly loss of 29 cents per share on revenue of $126.47 million. The company will release earnings after the markets close. Applied Digital shares gained 0.5% to $25.45 in after-hours trading. Check out our premarket coverage here
Constellation Brands Inc. (NYSE:STZ) posted better-than-expected earnings for the second quarter and raised its FY2027 GAAP earnings guidance. The company also announced the acquisition of spirit-based ready-to-drink brand SpikedAde. Constellation shares fell 4.5% to $110.50 in the after-hours trading session. Analysts expect Richardson Electronics Ltd. (NASDAQ:RELL) to post quarterly earnings of 9 cents per share on revenue of $58.98 million after the closing bell. Richardson Electronics shares gained 1.5% to $19.34 in after-hours trading. Photo via Shutterstock
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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Bottles of Corona beer are displayed on a shelf in a supermarket in Sarajevo, Bosnia and Herzegovina October 29, 2024. REUTERS/Dado Ruvic Purchase Licensing Rights, opens new tab
Oct 6 (Reuters) - Constellation Brands (STZ.N), opens new tab beat second-quarter estimates for profit and sales on Tuesday, as resilient demand for its beer such as Modelo Especial and Victoria helped offset challenges facing the alcohol industry in a soft spending environment.
The company also said it has bought SpikedAde, a vodka-based ready-to-drink (RTD) beverage company, for at least $75 million, as part of its strategy to expand into new demand areas and strengthen its position in the fast-growing RTD category.
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The company will pay $75 million at the closing of the deal for SpikedAde, and up to an additional $278 million over five years contingent to the brand's performance as well as Constellation's capital-allocation priorities.
Constellation's beer business benefited from major sporting events this year, as the FIFA World Cup and NBA Finals spurred watch parties and social drinking occasions.
Net sales for the quarter ended August 31 rose 6% to $2.63 billion, while analysts, on average, estimated $2.54 billion, according to data compiled by LSEG.
It earned $3.74 per share on an adjusted basis during the quarter, compared with the estimate of $3.56.
Its wine and spirits business reported a 17% increase in quarterly net sales, while the beer segment posted a 5% rise.
Constellation reaffirmed its fiscal 2027 forecast for adjusted earnings at $11.20 to $11.90 per share, and organic net sales in the range of 1% decline to 1% growth.
The company lowered its annual operating margin forecast to 31% to 32%, from its prior forecast of 32% to 33%.
Its shares were down 4.5% in extended trading. They have fallen about 16% so far this year.
The company withdrew its fiscal 2028 forecast in April, citing a volatile operating environment and a limited near-term visibility.
Reporting by Angela Christy in Bengaluru; Editing by Shilpi Majumdar
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Constellation Brands (STZ - Free Report) came out with quarterly earnings of $3.74 per share, beating the Zacks Consensus Estimate of $3.62 per share. This compares to earnings of $3.63 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +3.32%. A quarter ago, it was expected that this wine, liquor and beer company would post earnings of $3.22 per share when it actually produced earnings of $3.43, delivering a surprise of +6.52%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Constellation Brands, which belongs to the Zacks Beverages - Alcohol industry, posted revenues of $2.63 billion for the quarter ended August 2026, surpassing the Zacks Consensus Estimate by 2.46%. This compares to year-ago revenues of $2.48 billion. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Constellation Brands shares have lost about 17.9% since the beginning of the year versus the S&P 500's gain of 13.6%.
What's Next for Constellation Brands?While Constellation Brands has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Constellation Brands was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $2.89 on $2.22 billion in revenues for the coming quarter and $11.81 on $9.13 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Beverages - Alcohol is currently in the top 46% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Molson Coors Brewing (TAP - Free Report) , another stock in the same industry, has yet to report results for the quarter ended September 2026.
This beer maker is expected to post quarterly earnings of $1.50 per share in its upcoming report, which represents a year-over-year change of -10.2%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Molson Coors Brewing's revenues are expected to be $2.95 billion, down 0.9% from the year-ago quarter.
Constellation Brands (STZ - Free Report) reported $2.63 billion in revenue for the quarter ended August 2026, representing a year-over-year increase of 6.1%. EPS of $3.74 for the same period compares to $3.63 a year ago.
The reported revenue represents a surprise of +2.46% over the Zacks Consensus Estimate of $2.57 billion. With the consensus EPS estimate being $3.62, the EPS surprise was +3.32%.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Constellation Brands performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Net Sales- Wine and Spirits: $159.4 million versus $135.95 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +17.2% change.Net Sales- Beer: $2.47 billion compared to the $2.43 billion average estimate based on four analysts. The reported number represents a change of +5.5% year over year.Operating Income- Beer: $964.2 million versus the four-analyst average estimate of $958.64 million.Operating Income- Corporate Operations and Other: $-73.7 million compared to the $-52.34 million average estimate based on four analysts.Operating Income- Wine and Spirits: $6.1 million versus the four-analyst average estimate of $2.85 million.View all Key Company Metrics for Constellation Brands here>>>
Shares of Constellation Brands have returned -11.6% over the past month versus the Zacks S&P 500 composite's +0.8% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
ROCHESTER, N.Y., Oct. 06, 2026 (GLOBE NEWSWIRE) -- Constellation Brands, Inc. (NYSE: STZ), a leading U.S.-based total beverage alcohol company, today reported its second quarter fiscal 2027 financial results. A conference call to discuss the financial results and outlook will be hosted by President and Chief Executive Officer, Nicholas Fink, and Chief Financial Officer, Garth Hankinson, on Wednesday, October 7, 2026, at 8:00 a.m. ET. Visit ir.cbrands.com to locate information for joining the conference call, or a live, listen-only webcast of the conference call.
ABOUT CONSTELLATION BRANDS
Constellation Brands (NYSE: STZ), a leading U.S.-based company, is an international producer and marketer of beer, wine, and spirits with operations in the U.S., Mexico, New Zealand, and Italy. Our mission is to build brands that people love because we believe elevating human connections is Worth Reaching For. It’s worth our dedication, hard work, and calculated risks to anticipate market trends and deliver for our consumers, shareholders, employees, and industry. This dedication is what has driven us to become one of the fastest-growing, large CPG companies in the U.S. at retail, and it drives our pursuit to deliver what’s next.
Every day, people reach for brands from our high-end, imported beer portfolio anchored by the iconic Corona Extra and Modelo Especial, a flavorful lineup of Modelo Cheladas, and favorites like Pacifico, and Victoria; our exceptional wine brands including The Prisoner Wine Company, Robert Mondavi Winery, Kim Crawford, Schrader Cellars, and Lingua Franca; and our craft spirits brands such as Mi CAMPO Tequila and High West Whiskey.
As an agriculture-based company, we strive to operate in a way that is sustainable and responsible. Our ESG strategy is embedded into our business and we focus on serving as good stewards of the environment, investing in our communities, and promoting responsible beverage alcohol consumption. We believe these aspirations in support of our longer-term business strategy allow us to contribute to a future that is truly Worth Reaching For.
To learn more, visit www.cbrands.com and follow us on LinkedIn and Instagram.
A PDF containing our second quarter fiscal 2027 financial results and full financial tables is available at:
ROCHESTER, N.Y., Oct. 06, 2026 (GLOBE NEWSWIRE) -- Constellation Brands, Inc. (NYSE: STZ), a leading U.S.-based total beverage alcohol company, today announced the acquisition of SpikedAde, a differentiated, consumer-led spirit-based ready-to-drink (RTD) beverage brand competing in the emerging sports drink-inspired "Ade" segment.
Constellation's strong brand building and go-to-market capabilities to help SpikedAde expand distribution across the U.S.Transaction includes a $75 million payment at close for 100% ownership of the business, as well as additional contingent consideration of up to $278 million payable over five years based on the future performance of the SpikedAde business, reflective of Constellation’s disciplined approach to capital allocation.The acquisition strengthens Constellation's position in the fast-growing RTD category and expands its portfolio into an emerging, consumer-led demand space.SpikedAde is well positioned to capitalize on the growing demand for flavorful, sessionable RTDs designed for modern social occasions and evolving consumer preferences.The spirit-based RTD category is one of the fastest-growing areas in beverage alcohol, with dollar sales increasing by 25% in the last year.1 About SpikedAde
SpikedAde is a spirit-based RTD beverage brand competing in the emerging "Ade" segment. The brand combines familiar sports drink flavors with a vodka base in a zero-sugar, 100-calorie, non-carbonated format. As a first mover in the space, SpikedAde has demonstrated strong early momentum through expanding distribution, rapid account growth, and high reorder rates. With an established presence across the eastern U.S. and significant runway for growth, SpikedAde represents a compelling opportunity to accelerate its expansion and extend its reach.
Message from Constellation’s President & CEO
“SpikedAde has successfully carved out a distinctive position in an emerging segment and built a brand that is clearly connecting with consumers,” said Nicholas Fink, Constellation’s President and Chief Executive Officer. “As consumer preferences evolve and new occasions continue to emerge, we're excited to build on the strong foundation the SpikedAde team has created and leverage our proven capabilities to accelerate growth, expand the brand's reach, and unlock new opportunities for the platform over time.”
Message from SpikedAde Founder and CEO
“When we created SpikedAde, it was with the goal of helping define a new era for RTDs – one that meets consumers where performance, lifestyle, and social energy intersect – and our team and distributor partners turned that vision into reality faster than we ever imagined,” said Jason Cohen, Founder and CEO of SpikedAde. “With Constellation's scale and expertise behind it, we're excited to see SpikedAde reach even more consumers with its distinctive positioning and continue its remarkable growth trajectory.”
FAQ
Why did Constellation acquire SpikedAde?
Constellation Brands acquired SpikedAde on October 6, 2026 to strengthen its position in the fast-growing RTD category and expand its portfolio into new consumer demand spaces aimed at sustainable consumer trends. What is SpikedAde?
SpikedAde is a spirit-based RTD beverage brand competing in the emerging "Ade" segment. The brand combines familiar sports drink flavors with a vodka base in a zero-sugar, 100-calorie, non-carbonated format. What is the “Ade” segment?
"Ade" is an emerging segment of spirit-based RTD beverages inspired by familiar sports drink flavors. SpikedAde was one of the first brands to establish a presence in the segment. Will SpikedAde continue to operate as its own brand?
The SpikedAde team will be integrated into Constellation’s Beer Division, and Constellation will assume production oversight, marketing, and distribution of the brand. The company intends to align SpikedAde distribution with Gold Network Distributor partners, in accordance with applicable law. 1Circana MULOC+ 52 weeks ending 8-30-26
ABOUT CONSTELLATION BRANDS
Constellation Brands (NYSE: STZ), a leading U.S.-based company, is an international producer and marketer of beer, wine, and spirits with operations in the U.S., Mexico, New Zealand, and Italy. Our mission is to build brands that people love because we believe elevating human connections is Worth Reaching For. It’s worth our dedication, hard work, and calculated risks to anticipate market trends and deliver for our consumers, shareholders, employees, and industry. This dedication is what has driven us to become one of the fastest-growing, large CPG companies in the U.S. at retail, and it drives our pursuit to deliver what’s next.
Every day, people reach for brands from our high-end, imported beer portfolio anchored by the iconic Corona Extra and Modelo Especial, a flavorful lineup of Modelo Cheladas, and favorites like Pacifico, and Victoria; our exceptional wine brands including The Prisoner Wine Company, Robert Mondavi Winery, Kim Crawford, Schrader Cellars, and Lingua Franca; and our craft spirits brands such as Mi CAMPO Tequila and High West Whiskey.
As an agriculture-based company, we strive to operate in a way that is sustainable and responsible. Our ESG strategy is embedded into our business and we focus on serving as good stewards of the environment, investing in our communities, and promoting responsible beverage alcohol consumption. We believe these aspirations in support of our longer-term business strategy allow us to contribute to a future that is truly Worth Reaching For.
To learn more, visit www.cbrands.com and follow us on LinkedIn and Instagram.
FORWARD-LOOKING STATEMENTS
This news release contains forward-looking statements. All statements other than statements of historical fact are forward-looking statements. The word “expect” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. These statements may relate to business strategy, future operations, prospects, plans, and objectives of management, including expanding SpikedAde’s distribution, the amount of contingent consideration, if any, that may be paid, strengthening Constellation's position in the fast-growing RTD category, emerging, consumer-led demand spaces, SpikedAde’s ability to capitalize on growing demand and connect with consumers, SpikedAde’s runway for and continuing growth, building on SpikedAde's foundation and unlocking new opportunities, and integration and distribution plans for SpikedAde, as well as information concerning expected actions of third parties. All forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those set forth in, or implied by, such forward-looking statements.
The forward-looking statements are based on management’s current expectations and should not be construed in any manner as a guarantee that any of the events anticipated by the forward-looking statements will in fact occur or will occur on the timetable contemplated hereby. All forward-looking statements speak only as of the date of this news release and Constellation does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.
In addition to risks and uncertainties associated with ordinary business operations, the forward-looking statements contained in this news release are subject to other risks and uncertainties, including the accuracy of all projections and other factors and uncertainties disclosed from time-to-time in Constellation Brands’ filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the fiscal year ended February 28, 2026, which could cause actual future performance to differ from current expectations.
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/e50b51fa-5183-4317-84b1-966b5db3ee08
A downloadable PDF copy of this news release can be found here: http://ml.globenewswire.com/Resource/Download/0771de0a-3696-4d58-b7c6-290102f8c9c6
Live 1 update · Last at 1:48pm ET Updates appear automatically.
By Thomas Richmond · Updated Oct 6, 1:48pm ET · Published Oct 6, 1:55pm ET
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.
Live UpdatesNewest first
Constellation Brands (NYSE: STZ) reports fiscal Q2 earnings at 4:05 PM ET today, with Wall Street expecting roughly $3.55 per share. That would be below the $3.63 reported a year ago, while estimates have been trending lower ahead of the print.
Expectations are already low. Constellation shares have been under pressure heading into earnings as investors worry about softer beer demand and margin pressure.
Management has also warned of higher costs, while its current full-year outlook calls for beer sales ranging from a 1% decline to 1% growth and beer operating margins of 37% to 38%.
That makes tonight’s report an important test of whether bad news is finally priced in. Constellation now trades at roughly 11 times trailing earnings and carries a dividend yield around 3.6% and free cash flow yield near 9.5%.
If Modelo and the broader beer portfolio show signs of stabilization while margins hold up, even a modestly positive report could give investors a reason to reconsider the stock’s depressed valuation.
This article is updated throughout the trading day. Check back for more.
Full CoverageThe story so far
Constellation Brands (NYSE:STZ | STZ Price Prediction) is expected to report fiscal second-quarter 2027 results at 4:05 PM ET with the earnings call scheduled for tomorrow, October 7, at 8:00 AM ET. Shares are down 16.69% over the past year, so this summer-quarter report will show whether beer growth can hold up.
Beat Streak Meets a Skeptical Market Last quarter, Constellation beat EPS estimates by posting $3.43, ahead of the $3.21 estimate. Revenue of $2.43B also exceeded forecasts, even though it fell 3.3% YoY after the 2025 wine divestitures. Organic net sales rose 3%, and free cash flow climbed 9% to $484.6M.
The stock still slid 3.24% in the week after the report and now trades at $115.06, about 11 times earnings. Management confirmed comparable EPS guidance of $11.20 to $11.90 for the year. CEO Nicholas Fink reported, “Despite a discerning and value-conscious consumer environment, we grew Enterprise organic net sales and gained share during the first quarter of fiscal 2027.”
Consensus Estimates Metric Q2 FY2027 Estimate YoY Change FY2027 Estimate FY2028 Estimate Revenue $2.54B +2.4% $9.09B $9.25B EPS (Normalized) $3.5501 -2.2% $11.7279 $12.2690 Revenue is forecast to grow while EPS contracts, which lines up with the margin pressure management warned about. The quarterly EPS estimate has drifted down from its $3.70 mark 90 days earlier to $3.55. The full-year consensus still remains inside management’s guidance range.
What I’m Watching Tonight: Margins, Modelo, and Guidance Here are some of the key items I’m watching tonight in Constellation Brands’ Q2 report:
Beer margins. First-quarter beer gross margin reached 39%, but operating margin fell 10 basis points. Management said operating margins face more pressure in Q2 and Q3 as World Cup, college football, and NFL marketing ramps up. The focus will be whether beer margins stay on track for the 37%-38% full-year guide. Brand mix. Pacifico depletions rose about 21% and Victoria about 14%. Over the same quarter, Modelo Especial fell 2%, and Corona Extra dropped more than 5%. Fink pointed to a “significant gap to distribution” for Modelo, and new sales leader Jack Edwards is now responsible for closing that gap. Consumer health. Demand was strong in March, then weakened in April and May as gas prices rose. Texas and Florida stayed difficult markets. Consumer sentiment fell to 51.7 in August from 55.2 in July. Shipments and guidance. First-quarter shipments ran ahead of depletions, so the two need to move back in line. This quarter is compared against last year’s 7% drop in beer net sales. Analysts will watch whether management restores the FY2028 outlook it withdrew in April. Earnings History Quarter EPS Surprise Earnings-Day Move 7-Day Move 30-Day Move Q1 FY2027 +6.93% -1.59% -3.24% -4.03% Q4 FY2026 +11.11% +8.53% +0.72% -12.67% Q3 FY2026 +15.91% +5.32% +7.29% +11.94% Q2 FY2026 +9.34% +1.03% +0.78% -8.7% On average, shares moved 1.39% seven days after earnings over the past year.
Contact [email protected] for any questions or corrections.
Thomas Richmond
Thomas Richmond is a financial writer and content strategist with 5+ years of experience covering stocks and financial markets. He has published over 500 articles focused on individual stock analysis, helping investors better understand business fundamentals, stock valuations, and long-term opportunities.
Thomas previously served as a Content Lead at TIKR, a stock research platform, where he helped scale the company’s blog to hundreds of articles per month and contributed to a weekly newsletter reaching more than 100,000 investors.
Outside of work, Thomas enjoys weight lifting and soccer.
Pre-market futures are up this morning, adding to the Nasdaq’s all-time-high close on Monday afternoon. The blue-chip Dow is +180 points at this hour, the Nasdaq is +120 points and the S&P 500 is +28 points. The small-cap Russell 2000 is +13 points, presently. The anticipation of tech earnings are helping unlock positive sentiment ahead of Q3 report releases, including the attention-grabbing headline of NVIDIA (NVDA - Free Report) approaching an awe-inspiring $6 trillion market cap.
Brent crude oil — the London commodity index tracking international oil prices — is back down below $100 per barrel (/bbl) again this morning, with the American West Texas Intermediate (WTI) down below $90/bbl. Both indexes are more than -2.5% this morning. Without any concrete details regarding the war in Iran drawing to a close, conventional “wisdom” these days is that the conflict will come to an end after the midterm elections.
Bond yields have also moderated of late, while hovering at post-Great Recession (2009) highs above +5% on the 10-year. Currently, 10s are at +5.277%, the 2-year is +4.793% — representing a recent widening of the yield curve between the two, which had been tightening up of late — and the 30-year yield, telegraphing somewhat where 30-year fixed mortgage rates are headed, is currently +5.645%.
Trade Deficit Sinks to Deepest Level in 18 MonthsAhead of today’s open, the U.S. Trade Balance for August fell deeper than anticipated into negative territory: -$105.6 billion, from a revised -$92.8 billion (-$88.6 billion when initially reported) a month ago. This is the deepest trade deficit since the all-time low set back in March of 2025, -$132.98 billion, which directly preceded President Trump’s massive tariff initiative then known as “Liberation Day” (which lasted a week before tariff levels were largely rescinded).
Both Imports and Exports were up for the month: +1.4% and +4.3%, respectively. Total Imports reached $420.8 billion in the month, with August capital goods setting a new record high at $6.2 billion. These were particularly aligned with microchips from Taiwan imported to power the massive AI buildout, as well as higher oil prices.
Through the first four months of 2026, it appeared as if our trade deficit was under control, hovering steadily in the -$55 billion range. This deserved no prize, for sure, but we’re currently near double that deficit — having absorbed much of the tariff initiatives by then, but just taking on the higher oil prices following the attack on Iran.
What to Expect from the Stock Market TodayWe’re still a couple days away from big companies likePepsiCo (PEP - Free Report) and Delta Air Lines (DAL - Free Report) reporting Q3 earnings, but after today’s close we’ll hear from liquor provider Constellation Brands (STZ - Free Report) with its fiscal Q2 earnings numbers. Expectations are for slightly lower earnings growth year over year, -0.28%, on +3.58% growth on revenues. Changing habits among consumers — including household economy belt-tightening and use of GLP-1s (which constitutes “belt tightening” of a different kind) — has helped take shares well down from their 2024 levels.
Key Takeaways The 2026 Q3 earnings season begins to heat up this week. Several consumer-facing companies, including LEVI, STZ, and PEP, are all scheduled to report. The Q3 cycle will shift into a much higher gear when the big banks start reporting near mid-October. The Q3 earnings cycle is heating up, with several notable companies set to unveil quarterly results this week.
PepsiCo (PEP - Free Report) , Levi Strauss (LEVI - Free Report) , and Constellation Brands (STZ - Free Report) stand out on the docket, with each release providing an important read on consumer demand.
PepsiCoPepsiCo is scheduled to release its Q3 results on Thursday, October 8th, before the market opens. Its latest quarterly results were positive, with net revenue climbing 6.4% YoY to $24.2 billion. Organic revenue grew 2.4%, and the company reaffirmed its full-year financial guidance.
The upcoming release will provide an important update on the health of its North American business, particularly given continued affordability concerns among consumers. Volume trends will be key, with PepsiCo leaning on innovation, portion sizes, and its broad product portfolio to support demand.
Levi StraussLevi Strauss is set to unveil its Q3 results on Wednesday, October 7th. The company entered the release with solid momentum, posting 8% reported revenue growth and 6% organic growth in its latest quarter. Adjusted EPS jumped 27% YoY to $0.28, with Levi also raising its full-year revenue and EPS outlook.
Continued progress in its direct-to-consumer strategy will be a major focus, as Levi continues its broader push to evolve into a more diversified denim lifestyle company. Geographic trends will also be worth watching, with current estimates calling for growth across the Americas, Europe, and Asia.
Constellation BrandsConstellation Brands is scheduled to report Tuesday, October 6th, after the market close, unveiling its fiscal Q2 results. Its latest quarterly results were somewhat mixed, with reported sales falling 3% YoY to $2.4 billion, largely reflecting prior wine divestitures. Still, its Beer segment delivered 2% sales growth.
Importantly, management maintained its fiscal 2027 comparable EPS outlook of $11.20-$11.90 per share. The upcoming print should provide another useful read into beer demand, with Modelo, Corona, and Pacifico remaining important drivers.
Bottom Line
The Q3 earnings season will soon shift into a much higher gear, but PepsiCo (PEP - Free Report) , Levi Strauss (LEVI - Free Report) , and Constellation Brands (STZ - Free Report) stand out among this week’s notable releases as we inch closer to the heart of the period.
All three will offer fresh reads on consumer spending, with volume trends, brand momentum, and management commentary likely to be the main focus.
Alcohol company Constellation Brands (NYSE:STZ) looks to win back investors after shares hit 11-year lows on Monday, one day before the company reports second-quarter financial results after market close.
Here are the earnings estimates, what experts are saying and key items to watch.
• Constellation Brands stock is gaining positive traction. Why are STZ shares climbing?
Constellation Brands Q2 Earnings EstimatesAnalysts expect Constellation to report second-quarter revenue of $2.54 billion, up from $2.48 billion year-over-year, according to data from Benzinga Pro.
The company has beaten analyst estimates for revenue in four straight quarters and in eight of the last 10 quarters overall.
Analysts expect Constellation to report second-quarter earnings per share of $3.57, down from $3.63 in last year’s third quarter.
The company has beaten analyst estimates for earnings per share in four straight quarters and in nine of the last 10 quarters overall.
Read Next
What Experts are SayingWith a string of recent double beats, investors are reminded that Constellation Brands stock rallied higher after five of the past six earnings reports, according to Freedom Capital Chief Market Strategist Jay Woods.
Woods said that doesn’t tell the story with shares now trading at 52-week lows.
"Investors will be watching whether demand for Modelo and Corona has improved after a difficult stretch for beer sales," Woods said in a weekly newsletter. "A steadier sales trend and confidence in the full-year outlook could give the stock a reason to rebound."
Looking at the Constellation chart and technicals, Woods says the price action is in "uncharted territory" for daily and weekly trends.
"Trying to catch a falling knife is a dangerous proposition and owning stocks in downtrends is not a prosperous strategy."
Woods highlights relief target levels of $121 and $127, but also sees an ugly picture to the downside with the $111 lows and the potential to break that level and go back to the $100 level.
Here are recent analyst ratings on Constellation Brands and their price targets:
Wells Fargo: Maintained Overweight rating, lowered price target from $170 to $140 RBC Capital: Maintained Outperform rating, with price target of $185 JPMorgan: Maintained Neutral rating, lowered price target from $166 to $133 UBS: Maintained Buy rating, lowered price target from $168 to $145 Key Items to WatchConstellation Brands, which imports beer to the U.S., has previously been one of the companies hurt by tariffs on Mexico and Canada. That could be a trend to watch in the quarter.
Modelo Especial and Corona Extra have grown in size and continue to be highlighted by the company as key opportunities for future growth.
With revenue growth and recent earnings beats, investors and analysts will likely be looking for a perfect quarter of a double beat and strong guidance to help reward shares. Previous tariff disruptions may have taken the stock off of investors’ radars, along with trends like lower alcohol sales in the U.S.
Another item that may be taking Constellation Brands out of style is Berkshire Hathaway (NYSE:BRK)(NYSE:BRK) completely exiting its stake in the alcohol company in the second quarter.
STZ Stock Price ActionConstellation Brands stock is up 0.84% to $113.82 on Monday. The stock hit a new 11-year low of $110.60 on Monday, hitting levels last seen in January 2015 for the stock. Constellation Brands stock is down 20.8% year-to-date in 2026.
Constellation Brands, Inc. (NYSE:STZ) will release second-quarter earnings after the closing bell on Tuesday, Oct. 6.
Some of the company’s investors may be eyeing potential dividend gains. Currently, Constellation Brands has an annual dividend yield of 3.65%, or a quarterly dividend amount of $1.03 per share ($4.12 a year).
To figure out how to earn $500 monthly from Constellation Brands, we start with the yearly target of $6,000 ($500 x 12 months).
Next, we divide that amount by STZ’s $4.12 dividend: $6,000 / $4.12 = 1,456 shares.
So, an investor would need to own approximately $164,339 worth of Constellation Brands, or 1,456 shares to generate a monthly dividend income of $500.
Assuming a more conservative goal of $100 monthly ($1,200 annually), we do the same calculation: $1,200 / $4.12 = 291 shares, or $32,845 to generate a monthly dividend income of $100.
Note that dividend yield can change on a rolling basis, as dividend payments and stock prices both fluctuate over time.
The dividend yield is calculated by dividing the annual dividend payment by the current stock price. As the stock price changes, the dividend yield will also change.
For example, if a stock pays an annual dividend of $2 and its current price is $50, its dividend yield would be 4%. However, if the stock price increases to $60, the dividend yield would decrease to 3.33% ($2/$60).
Conversely, if the stock price decreases to $40, the dividend yield would increase to 5% ($2/$40).
Further, the dividend payment itself can also change over time, which can impact the dividend yield. If a company increases its dividend payment, the dividend yield will increase even if the stock price remains the same. Similarly, if a company decreases its dividend payment, the dividend yield will decrease.
Constellation Brands: Price ActionConstellation Brands shares fell 0.1% to close at $112.87 on Friday.
Analysts expect the company to report quarterly earnings of $3.56 per share, down from $3.63 per share a year ago. The consensus estimate for STZ’s quarterly revenue is $2.54 billion. It reported $2.48 billion last year, according to Benzinga Pro.
On June 30, Constellation Brands reported better-than-expected first-quarter financial results and raised its FY27 GAAP EPS guidance.
Consumer goods stocks are supposed to be the boring, reliable part of a portfolio: People buy detergent, toothpaste, and other everyday products in good times and bad. But that reputation has taken a beating this year. Clorox (CLX -0.30%), General Mills (GIS +1.07%), and Constellation Brands (STZ -0.11%) are all down double digits from their highs -- each for very different reasons.
Higher interest rates make the comparison more useful, not less, because they raise the bar for what "safe" actually means: A company has to generate real cash and not lean too hard on debt to keep paying its dividend. Only one of these three clears that bar comfortably right now.
Image source: Getty Images.
Clorox is fixing problems it created for itself Clorox stock has fallen roughly 35% over the past year, with about half of that coming in just the past month. The company cut its full-year outlook, citing inflation, supply chain strain, and early costs from digesting its purchase of hand sanitizer maker GOJO, per The Wall Street Journal. Clorox did just raise its dividend again in late September, which suggests management isn't worried about the payout. But a guidance cut paired with a shrinking gross margin tells me the business still has real integration work ahead of it over the next couple of quarters, and I'd rather watch that play out from the sidelines before trusting the stock with new money.
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General Mills is rebuilding the plane while flying it General Mills stock is down roughly 22% so far this year, and the moves it's made lately read like a company trying to become something different. It has completely sold off its U.S. and Canadian yogurt businesses, agreed to divest its Brazil operations, and is exiting its Häagen-Dazs shops in mainland China, while steering investment toward premium pet food and smaller, faster-growing brands. Chief Executive Officer Jeff Harmening has said new acquisitions aren't a priority right now, since paying down debt comes first, according to Food Dive.
That discipline is admirable, but it's also why I'm not ready to buy in. General Mills' dividend now eats up close to three-quarters of its free cash flow. Reshuffling a portfolio while the cash cushion behind the dividend keeps shrinking is a tougher setup in a world of expensive debt than starting from a clean balance sheet.
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3. Constellation Brands is the one built to handle higher rates Constellation Brands, the company behind Modelo, Corona, and Pacifico, just hit a new 52-week low, weighed down by proposed tariffs on Mexican imports that could raise costs on its best-selling beers. That's a real risk. But look at what the company has been doing with its money: Last year, it authorized a new three-year, $4 billion stock buyback, on top of its dividend, and in September, it redeemed $600 million of debt early rather than waiting for the notes to mature. That's a company choosing to enter a higher-rate environment with less debt, not more.
Constellation's operating margin also sits around 31%, roughly double the median for its consumer staples peers, per Trefis. Higher rates hurt companies that need to keep refinancing debt or leaning on promotions to move product. Constellation is doing the opposite on both counts.
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Of the three, Constellation Brands is the one I'd buy today. The tariff overhang is real and could pressure the stock further in the short term, so this isn't a bet on a quick bounce. It's a bet that a company paying down debt, buying back shares, and pushing toward its most profitable brands is better positioned to ride out a higher-rate world than one still cleaning up its own acquisition or one whose stock is essentially spoken for by someone else's takeover.
There's also something simpler underneath all of this: People drink, and brands like Modelo and Corona have built the kind of brand loyalty that doesn't evaporate because borrowing costs went up. A recession or a stretch of high rates can push a shopper to buy the store-brand cereal instead of a name brand, but it rarely talks a longtime Modelo or Corona drinker into switching beers. That kind of demand durability matters more, not less, when interest rates stay elevated, because it's what lets Constellation keep generating the cash it's using to pay down debt and buy back stock in the first place.
Two consumer staples stocks sit near 52-week lows with nearly identical dividend yields, but one has been quietly raising payouts at six times the rate of the other while protecting margins through commodity chaos.
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Constellation Brands (NYSE:STZ | STZ Price Prediction) and Hershey (NYSE:HSY) have nearly the same dividend yield, and both trade close to their 52-week lows. So which one better fits a retirement-income profile? Constellation yields 3.62% at $113.40. Hershey yields 3.58% at $159.91. The businesses behind those yields are very different.
Dividend and Income: Hershey’s Raises Keep Up With Inflation Hershey’s forward dividend is $5.808 per share. It raised the quarterly payout to $1.452 from $1.37, an increase of about 6%. Its record goes back to a $0.24 quarterly payment in 1999. Constellation’s forward dividend is $4.12, and its latest raise was just 1%.
Constellation covers its dividend more easily. Its payout equals about 37% of the low end of its fiscal 2027 comparable EPS guidance of $11.20 to $11.90. Hershey’s equals roughly 69% of its $8.36 to $8.52 adjusted EPS guide. But Constellation directs its spare cash to buybacks: $924.1 million in fiscal 2026. A retiree needs income that grows faster than prices, and 1% increases don’t do that. Winner: Hershey.
Durability and Pricing Power: Hershey’s Margins Show It Can Raise Prices In the second quarter, price increases added about 12 points to Hershey’s sales growth. Volume fell about 8 points, yet revenue still rose 6.6% to $2.79 billion. Adjusted gross margin expanded 350 bps to 41.6%, and adjusted operating margin expanded 450 bps to 20.2%. That came after a 2025 in which commodity costs pressured gross margin. Adjusted EPS of $1.90 beat the $1.43 consensus, Hershey’s fourth straight beat. Management also cited “good visibility into cocoa deflation next year.”
Constellation’s beer business is still very profitable, with a 39% beer gross margin. But pricing added only 20 basis points of margin in the quarter. Modelo Especial depletions (sales from distributors to retailers) fell 2%, and Corona Extra’s fell 5%. Fiscal 2027 organic net sales guidance is (1)% to +1%. The company also faces aluminum tariffs, heavy reliance on Mexican production and pressure on Hispanic consumers, and it pulled its fiscal 2028 outlook. CEO Nick Fink called it “a volatile quarter.” Winner: Hershey.
Valuation Versus History: Constellation Is Priced for Trouble Constellation trades at 11 times trailing earnings and 10 times forward earnings. Hershey trades at 22 and 18. Constellation sits about 21% below its 200-day average of $143.57, just above its 52-week low of $111.54 and far below its high of $166.17. The stock is down 41.68% over five years. The average analyst target of $163.35, supported by 11 Buy and 3 Strong Buy ratings, suggests Wall Street thinks the discount has gone too far.
Hershey is down too, about 16% below its 200-day average of $191.2 and close to its 52-week low of $156.16. Even so, it costs about twice as much per dollar of earnings. Winner: Constellation, by a wide margin.
Verdict: Hershey Is the Retirement Holding Hershey wins two of the three dimensions, and they are the two that matter most to retirees: income that keeps growing and a proven ability to protect margins. The long-term results agree. Hershey gained 113.57% over ten years, while Constellation lost 19.45%. Hershey’s beta (a measure of how much a stock moves with the market) is 0.097, compared with 0.4 for Constellation.
Constellation fits a different investor: a value buyer with a long view who wants a well-covered yield at a low multiple and can wait for beer sales to turn around. For income-focused retirement profiles, Hershey’s numbers line up better (the whole point of a dividend ladder is never having to sell a share, and we laid out how to build one in a free guide).
Here’s what would flip the conclusion. On Constellation’s side, it would take Modelo and Corona depletions growing again, a restored fiscal 2028 outlook and real dividend raises once the Veracruz brewery comes online. On Hershey’s side, the case weakens if cocoa costs don’t fall in 2027 or volume keeps dropping as prices rise. The next things to watch are Hershey’s Halloween season and Constellation’s next depletion report.
Contact [email protected] for any questions or corrections.
The upcoming report from Constellation Brands (STZ - Free Report) is expected to reveal quarterly earnings of $3.62 per share, indicating a decline of 0.3% compared to the year-ago period. Analysts forecast revenues of $2.57 billion, representing an increase of 3.6% year over year.
The consensus EPS estimate for the quarter has been revised 0.4% lower over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.
Before a company reveals its earnings, it is vital to take into account any changes in earnings projections. These revisions play a pivotal role in predicting the possible reactions of investors toward the stock. Multiple empirical studies have consistently shown a strong association between trends in earnings estimates and the short-term price movements of a stock.
While investors typically use consensus earnings and revenue estimates as indicators of quarterly business performance, exploring analysts' projections for specific key metrics can offer valuable insights.
Bearing this in mind, let's now explore the average estimates of specific Constellation Brands metrics that are commonly monitored and projected by Wall Street analysts.
Based on the collective assessment of analysts, 'Net Sales- Wine and Spirits' should arrive at $135.95 million. The estimate points to a change of 0% from the year-ago quarter.
Analysts predict that the 'Net Sales- Beer' will reach $2.43 billion. The estimate indicates a year-over-year change of +3.8%.
It is projected by analysts that the 'Operating Income- Beer' will reach $958.64 million. Compared to the present estimate, the company reported $951.60 million in the same quarter last year.
View all Key Company Metrics for Constellation Brands here>>>
Shares of Constellation Brands have experienced a change of -12.6% in the past month compared to the -0.4% move of the Zacks S&P 500 composite. With a Zacks Rank #4 (Sell), STZ is expected to underperform the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Key Takeaways Constellation Brands is expected to post 3.6% revenue growth, while EPS is seen slipping 0.3%.STZ's beer business may benefit from premiumization, Mexico capacity investments and share gains.Constellation Brands faces uneven demand, weak Wine & Spirits sales, and inflation-driven cost pressures. Constellation Brands, Inc. (STZ - Free Report) is scheduled to release second-quarter fiscal 2027 results on Oct. 6, 2026. The alcoholic beverage bigwig is expected to have recorded growth in its top line in the to-be-reported quarter.
The Zacks Consensus Estimate for the company’s fiscal second-quarter earnings is pegged at $3.62 per share, indicating a 0.3% decline from the year-ago quarter’s actual. The consensus mark has moved down by a penny in the past seven days. The consensus estimate for revenues is pegged at $2.57 billion, suggesting 3.6% growth from the prior-year quarter’s reported figure.
In the last reported quarter, the alcohol behemoth delivered an earnings surprise of 6.5%. Its bottom line beat estimates by 9.6%, on average, in the trailing four quarters.
What the Zacks Model Says for STZ StockOur proven model does not conclusively predict an earnings beat for Constellation Brands this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here. You can uncover the best stocks before they are reported with our Earnings ESP Filter.
Constellation Brands currently has an Earnings ESP of -1.86% and a Zacks Rank #4 (Sell).
Key Factors to Note Before STZ’s Q2 ResultsConstellation Brands’ second-quarter fiscal 2027 results are expected to reflect continued strength in its beer business. The company is expected to have benefited from its premiumization strategy and investments in its capacity expansion in Mexico. The beer business continues to outperform the category in dollar share gains.
Premiumization continues to reinforce the company’s premium positioning via disciplined investment, portfolio expansion and consumer-led marketing. The beer segment has also been experiencing gains from premiumization, driven by growth in traditional beer and flavored categories, including seltzers, flavored beer, RTD spirits and flavored malt beverages. The company is investing in its Power Brands through innovation and capitalizing on priority consumer trends with successful product introductions.
The wine and spirits business has been transitioning its portfolio toward higher-end brands that align better with consumer-led premiumization trends. Key growth drivers included the company's high-end Power Brands, such as The Prisoner Brand Family, Kim Crawford and Meiomi.
On the last reported quarter’s earnings call, management expressed confidence in the continued momentum of its beer, and wine & spirits businesses, with growth expected across both segments.
However, demand remains uneven as consumers react to fuel prices, inflation and tighter income. The company has been witnessing sluggishness in its Wine & Spirits business for a while now, as sales plunged 47% in the fiscal first quarter. Tariffs, product mix, marketing timing and Veracruz start-up costs may limit margin expansion.
High packaging and raw material costs from continued inflationary pressures, as well as increased depreciation and operating costs from brewery capacity expansions, are likely to have been concerning. This is expected to have impacted the operating income in the beer, and wine & spirits businesses.
STZ Stock’s Valuation PictureFrom a valuation perspective, Constellation Brands offers an attractive opportunity, trading at a discount relative to historical and industry benchmarks. With a forward 12-month price-to-earnings ratio of 9.39X, which is below the five-year high of 18.33X and the Beverages - Alcohol industry’s average of 13.91X, the stock offers compelling value for investors seeking exposure to the alcohol beverages space.
Image Source: Zacks Investment Research
The recent market movements show that STZ shares have lost 17.8% in the past three months compared with the industry's 6.7% decline.
Image Source: Zacks Investment Research
Stocks With Favorable CombinationHere are some companies, which, according to our model, have the right combination of elements to post an earnings beat this time around:
The Coca-Cola Company (KO - Free Report) presently has an Earnings ESP of +0.57% and a Zacks Rank #2. The company is expected to register top and bottom-line growth when it reports third-quarter 2026 results. The Zacks Consensus Estimate for quarterly revenues is pegged at $12.9 billion, which indicates a rise of 4% from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for quarterly earnings has moved by a penny in the past 30 days. The consensus mark for Coca-Cola earnings indicates growth of 6.1% from the year-ago quarter’s reported number. KO delivered an earnings surprise of 4.6%, on average, in the trailing four quarters.
Anheuser-Busch InBev (BUD - Free Report) currently has an Earnings ESP of +1.22% and a Zacks Rank #3. The Zacks Consensus Estimate for third-quarter 2026 EPS is pegged at $1.15, which implies an increase of 16.2% from the year-ago quarter’s actual. The consensus mark for EPS has been unchanged in the past 30 days.
The consensus mark for BUD’s quarterly revenues is pegged at $16.3 billion, which indicates growth of 7.6% from the figure reported in the prior-year quarter. BUD delivered a trailing four-quarter earnings surprise of 6.3%, on average.
Corteva Inc. (CTVA - Free Report) currently has an Earnings ESP of +19.35% and a Zacks Rank #3. The company is expected to register growth in its top line when it reports third-quarter 2026 results. The Zacks Consensus Estimate for CTVA’s quarterly loss per share has narrowed by a penny in the past 30 days to a loss of 41 cents per share. The consensus estimate for earnings indicates a 78.3% decline from the year-ago quarter's number.
The Zacks Consensus Estimate for Corteva’s quarterly revenues is pegged at $2.6 billion, implying a rise of 0.6% from the figure reported in the prior-year quarter. CTVA delivered an earnings surprise of 21.9%, on average, in the trailing four quarters.
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in STZ over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Wall Street expects a year-over-year decline in earnings on higher revenues when Constellation Brands (STZ - Free Report) reports results for the quarter ended August 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.
The earnings report, which is expected to be released on October 6, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus EstimateThis wine, liquor and beer company is expected to post quarterly earnings of $3.62 per share in its upcoming report, which represents a year-over-year change of -0.3%.
Revenues are expected to be $2.57 billion, up 3.6% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.44% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Constellation Brands?For Constellation Brands, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -1.86%.
On the other hand, the stock currently carries a Zacks Rank of #4.
So, this combination makes it difficult to conclusively predict that Constellation Brands will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Constellation Brands would post earnings of $3.22 per share when it actually produced earnings of $3.43, delivering a surprise of +6.52%.
Over the last four quarters, the company has beaten consensus EPS estimates four times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Constellation Brands doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Constellation Brands stock just hit a near 52-week low and its yield crept above 3.5%, putting dividend investors on alert. Before you buy the dip for income, there are a few warning signs buried in the cash flow statement worth…
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Constellation Brands (NYSE:STZ | STZ Price Prediction) closed at $113.65 on September 25, just above a 52-week low of $113.34. The stock is down 15.87% year to date and 15.49% over the past month, and MarketWatch noted it underperforming competitors on Thursday. That decline lifts the dividend yield to 3.58% and raises the question income buyers care about most: is the $1.03 quarterly payout secure heading into the next quarterly report?
A Young Dividend Still Finding Its Pace Constellation’s quarterly dividend record runs back to 2015, when it paid $0.31 a share. The payout jumped from $0.89 to $1.01 in 2024, then growth slowed sharply. The April 2026 raise to $1.03 was just 1%, and the June declaration held it flat. This is a payout still being established, with recent raises looking more like maintenance than momentum.
Beer Carries the Entire Payout Beer net sales hit $2.28B in the first quarter of fiscal 2027, up 2%, while Wine & Spirits fell 47% to $149.2M after the 2025 wine divestitures. Guidance calls for a Beer operating margin of 37%-38% versus 5%-6% for Wine & Spirits. That beer margin is the benchmark against Anheuser-Busch InBev (NYSE:BUD) and Molson Coors (NYSE:TAP), which chase the same U.S. beer shopper. Constellation’s Beer Business ranked as the #1 dollar share gainer in Circana U.S. tracked channels.
The flagships are the weak spot. Pacifico depletions rose about 21%, but Modelo Especial fell about 2% and Corona Extra about 5%. CEO Nick Fink was blunt on the call:
“There’s no question it’s a volatile quarter.”
He added that “there is still a gap that we’re seeing within the Hispanic zip codes relative to GENPOP.”
How Much Cash the Dividend Consumes In fiscal 2026, Constellation paid $715.7M in dividends against free cash flow of $1.79B. Buybacks took $924.1M, more than the dividend. Total financing outflow reached $2.66B, a figure that also captures debt activity. In the latest quarter, free cash flow of $484.6M covered $178.7M in dividends, with $223.8M going to repurchases.
Fiscal 2027 guidance calls for free cash flow of $1.6B-$1.7B despite roughly $800M of capex tied to the Veracruz brewery. The flexible line is buybacks, which sit behind the dividend in the cash queue.
Leverage and Earnings Coverage Cash was just $96.6M, with total liabilities of $13.56B against equity of $8.55B. Trailing EPS of $10.50 dwarfs the $4.12 annualized dividend, and comparable EPS guidance stands at $11.20-$11.90. The stock trades at 11 times trailing earnings. The withdrawn FY2028 outlook limits visibility (a rising yield coupled with slowing raises is one of the classic red flags we walked through in a free dividend trap guide).
What to Watch Into the Next Report Modelo Especial and Corona Extra depletion trends. Shipments versus depletions. CFO Garth Hankinson said they “will essentially equal one another” by fiscal year-end. Margin pressure, with marketing “over the 10%” of net sales in the second and third quarters. Buyback pace and any reaffirmation of the free cash flow range. Verdict: The Dividend Is Safe Yes. Beer margins fund the payout, free cash flow covers it with room left for buybacks, and earnings clear it by a wide margin. The real risk is a slower raise pace, and income buyers should expect small increases while Veracruz draws capital.
Contact [email protected] for any questions or corrections.
Constellation Brands Inc. (NYSE:STZ) shares are trading flat Friday morning as investors digest a price target reduction regarding the beverage alcohol giant’s near-term growth trajectory.
Here’s what investors need to know.
Constellation Brands stock is testing lower boundaries. Why did STZ hit a new low? JP Morgan Target Cut and Analyst ColorThe muted price action follows a research note published early Friday by JP Morgan analyst Drew Levine, who maintained a Neutral rating on the stock but lowered his 12-month price target from $165 to $133. Providing color in the note, Levine highlighted a more cautious outlook on consumer discretionary spending across the alcoholic beverage sector.
The analyst pointed to softening volume growth trends and acknowledged that current market conditions, specifically tighter household budgets, may limit near-term upside for premium and imported beverage brands. The revised $133 target reflects a more conservative view on margin expansion through the end of the calendar year, framing the equity as rangebound until underlying consumer demand re-accelerates.
Despite the target cut, Constellation’s flagship beer portfolio continues to serve as a structural support level for the equity. With Mexican import staples like Modelo and Corona continuing to drive the vast majority of its revenue, the company maintains a dominant market share in the premium beer category, allowing it to weather broader industry headwinds better than domestic-only competitors.
STZ Shares Pause Friday MorningSTZ Price Action: Constellation Brands shares were trading at $113.81 at the time of publication on Friday, according to Benzinga Pro data.
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Constellation Brands, Inc. (NYSE:STZ) will release earnings for its second quarter after the closing bell on Tuesday, Oct. 6.
Analysts expect the Rochester, New York-based company to report quarterly earnings of $3.56 per share, down from $3.63 per share in the year-ago period. The consensus estimate for STZ’s quarterly revenue is $2.54 billion. It reported $2.48 billion last year, according to Benzinga Pro.
On June 30, Constellation Brands reported better-than-expected first-quarter financial results and raised its FY27 GAAP EPS guidance.
Constellation Brands shares fell 0.9% to close at $116.57 on Wednesday.
Benzinga readers can access the latest analyst ratings on the Analyst Stock Ratings page. Readers can sort by stock ticker, company name, analyst firm, rating change or other variables.
Let’s have a look at how Benzinga’s most-accurate analysts have rated the company in the recent period.
Citigroup analyst Filippo Falorni maintained a Buy rating and cut the price target from $185 to $165 on Sept. 22, 2026. This analyst has an accuracy rate of 56%. Barclays analyst Lauren Lieberman maintained an Equal-Weight rating and cut the price target from $132 to $122 on Sept. 22, 2026. This analyst has an accuracy rate of 64%. Evercore ISI Group analyst Robert Ottenstein maintained the stock with an Outperform rating and slashed the price target from $175 to $160 on Sept. 21, 2026. This analyst has an accuracy rate of 53%. Jefferies analyst Kaumil Gajrawala maintained a Hold rating and cut the price target from $147 to $135 on Sept. 14, 2026. This analyst has an accuracy rate of 52%. Deutsche Bank analyst Steve Powers maintained the stock with a Hold rating and cut the price target from $150 to $136 on Sept. 11, 2026. This analyst has an accuracy rate of 66%. Considering buying STZ stock? Here’s what analysts think:
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Corient Private Wealth LP trimmed its position in shares of Constellation Brands Inc (NYSE:STZ – Free Report) by 37.2% during the second quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The fund owned 15,354 shares of the company’s stock after selling 9,081 shares during the period. Corient Private Wealth LP’s holdings in Constellation Brands were worth $2,136,000 as of its most recent filing with the Securities and Exchange Commission.
Other large investors have also recently added to or reduced their stakes in the company. Capital International Investors increased its stake in shares of Constellation Brands by 48.5% during the 4th quarter. Capital International Investors now owns 6,442,600 shares of the company’s stock worth $888,930,000 after purchasing an additional 2,105,546 shares during the last quarter. Norges Bank bought a new stake in Constellation Brands in the fourth quarter valued at approximately $267,798,000. Nykredit A S acquired a new stake in shares of Constellation Brands in the second quarter valued at approximately $83,687,000. Capital World Investors lifted its position in shares of Constellation Brands by 8.3% in the fourth quarter. Capital World Investors now owns 7,238,575 shares of the company’s stock valued at $998,740,000 after buying an additional 553,974 shares during the last quarter. Finally, Van ECK Associates Corp boosted its stake in shares of Constellation Brands by 11.0% during the 4th quarter. Van ECK Associates Corp now owns 2,397,275 shares of the company’s stock worth $330,728,000 after acquiring an additional 237,073 shares during the period. Institutional investors and hedge funds own 77.34% of the company’s stock.
Constellation Brands Stock Down 1.0% STZ opened at $116.36 on Thursday. Constellation Brands Inc has a fifty-two week low of $115.50 and a fifty-two week high of $168.60. The company has a debt-to-equity ratio of 1.06, a quick ratio of 0.48 and a current ratio of 0.91. The company has a market capitalization of $19.87 billion, a P/E ratio of 11.10, a P/E/G ratio of 2.33 and a beta of 0.41. The stock has a fifty day moving average of $129.60 and a 200-day moving average of $140.95.
Constellation Brands (NYSE:STZ – Get Free Report) last released its quarterly earnings results on Tuesday, June 30th. The company reported $3.43 EPS for the quarter, missing the consensus estimate of $3.70 by ($0.27). The business had revenue of $2.43 billion during the quarter, compared to analyst estimates of $2.39 billion. Constellation Brands had a net margin of 18.87% and a return on equity of 25.58%. The company’s revenue was down 3.3% on a year-over-year basis. During the same quarter last year, the company posted $3.22 earnings per share. Constellation Brands has set its FY 2027 guidance at 11.200-11.900 EPS. On average, equities analysts expect that Constellation Brands Inc will post 11.84 EPS for the current year. Constellation Brands Announces Dividend The business also recently disclosed a quarterly dividend, which was paid on Thursday, August 13th. Shareholders of record on Thursday, July 30th were issued a $1.03 dividend. The ex-dividend date of this dividend was Thursday, July 30th. This represents a $4.12 annualized dividend and a yield of 3.5%. Constellation Brands’s payout ratio is currently 39.31%.
Analyst Ratings Changes STZ has been the topic of a number of recent analyst reports. TD Cowen decreased their target price on Constellation Brands from $174.00 to $150.00 and set a “buy” rating on the stock in a report on Thursday, September 17th. Piper Sandler reaffirmed a “neutral” rating and set a $160.00 price objective on shares of Constellation Brands in a research report on Wednesday, July 1st. BNP Paribas Exane decreased their price objective on shares of Constellation Brands from $117.00 to $115.00 and set an “underperform” rating on the stock in a report on Thursday, July 2nd. Citigroup cut their target price on shares of Constellation Brands from $185.00 to $165.00 and set a “buy” rating for the company in a research note on Tuesday. Finally, Raymond James Financial set a $150.00 target price on shares of Constellation Brands in a report on Thursday, September 17th. Twelve research analysts have rated the stock with a Buy rating, nine have issued a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat, Constellation Brands currently has a consensus rating of “Hold” and a consensus price target of $161.90.
View Our Latest Research Report on STZ
Constellation Brands Profile (Free Report)
Constellation Brands, Inc (NYSE: STZ) is a beverage alcohol company that produces, markets and distributes beer, wine and spirits. Its portfolio includes well-known beer brands such as Corona Extra, Modelo Especial, Modelo Negra, Pacifico and Victoria, along with wine brands including Robert Mondavi, The Prisoner, Kim Crawford and Meiomi. Its spirits portfolio includes brands such as Casa Noble tequila and High West whiskey.
The company’s beer business is focused primarily on the United States, where Constellation markets and sells Mexican beer brands brewed by its production operations in Mexico.
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Nykredit A S bought a new position in Constellation Brands Inc (NYSE:STZ – Free Report) in the second quarter, according to the company in its most recent Form 13F filing with the SEC. The fund bought 455,503 shares of the company’s stock, valued at approximately $63,356,000. Nykredit A S owned about 0.27% of Constellation Brands as of its most recent filing with the SEC.
A number of other large investors have also recently made changes to their positions in the stock. Wellington Grp LLC lifted its stake in shares of Constellation Brands by 90.8% in the 2nd quarter. Wellington Grp LLC now owns 4,933 shares of the company’s stock worth $686,000 after purchasing an additional 2,347 shares during the period. Studio Investment Management LLC purchased a new position in shares of Constellation Brands during the 2nd quarter worth $202,000. Ameritas Advisory Services LLC bought a new stake in shares of Constellation Brands during the 2nd quarter valued at $299,000. AlphaGrep UK Ltd bought a new stake in shares of Constellation Brands during the 2nd quarter valued at $205,000. Finally, Raiffeisen Bank International AG increased its stake in shares of Constellation Brands by 1,689.5% in the 2nd quarter. Raiffeisen Bank International AG now owns 6,156 shares of the company’s stock worth $859,000 after purchasing an additional 5,812 shares in the last quarter. 77.34% of the stock is currently owned by institutional investors.
Analyst Upgrades and Downgrades Several research firms recently weighed in on STZ. Wells Fargo & Company lowered their target price on Constellation Brands from $185.00 to $170.00 and set an “overweight” rating on the stock in a research report on Monday, June 29th. BNP Paribas Exane decreased their price objective on Constellation Brands from $117.00 to $115.00 and set an “underperform” rating on the stock in a research note on Thursday, July 2nd. Freedom Capital cut Constellation Brands from a “strong-buy” rating to a “hold” rating in a research report on Wednesday, July 1st. Piper Sandler reissued a “neutral” rating and issued a $160.00 target price on shares of Constellation Brands in a report on Wednesday, July 1st. Finally, Sanford C. Bernstein restated an “outperform” rating and set a $197.00 target price (down from $305.00) on shares of Constellation Brands in a research note on Wednesday, July 1st. Twelve equities research analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat, Constellation Brands has a consensus rating of “Hold” and an average price target of $165.14.
Get Our Latest Research Report on Constellation Brands Constellation Brands Trading Down 2.8% STZ stock opened at $119.03 on Friday. The company has a debt-to-equity ratio of 1.06, a current ratio of 0.91 and a quick ratio of 0.48. Constellation Brands Inc has a 1-year low of $118.91 and a 1-year high of $168.60. The business has a 50 day simple moving average of $130.51 and a two-hundred day simple moving average of $141.77. The company has a market capitalization of $20.33 billion, a price-to-earnings ratio of 11.36, a PEG ratio of 2.42 and a beta of 0.41.
Constellation Brands (NYSE:STZ – Get Free Report) last issued its earnings results on Tuesday, June 30th. The company reported $3.43 earnings per share for the quarter, missing analysts’ consensus estimates of $3.70 by ($0.27). The company had revenue of $2.43 billion for the quarter, compared to the consensus estimate of $2.39 billion. Constellation Brands had a return on equity of 25.58% and a net margin of 18.87%.Constellation Brands’s revenue was down 3.3% compared to the same quarter last year. During the same quarter in the prior year, the company posted $3.22 EPS. Constellation Brands has set its FY 2027 guidance at 11.200-11.900 EPS. Research analysts anticipate that Constellation Brands Inc will post 11.84 EPS for the current fiscal year.
Constellation Brands Dividend Announcement The business also recently declared a quarterly dividend, which was paid on Thursday, August 13th. Investors of record on Thursday, July 30th were issued a dividend of $1.03 per share. This represents a $4.12 annualized dividend and a yield of 3.5%. The ex-dividend date was Thursday, July 30th. Constellation Brands’s dividend payout ratio is presently 39.31%.
Constellation Brands Company Profile (Free Report)
Constellation Brands, Inc (NYSE: STZ) is a beverage alcohol company that produces, markets and distributes beer, wine and spirits. Its portfolio includes well-known beer brands such as Corona Extra, Modelo Especial, Modelo Negra, Pacifico and Victoria, along with wine brands including Robert Mondavi, The Prisoner, Kim Crawford and Meiomi. Its spirits portfolio includes brands such as Casa Noble tequila and High West whiskey.
The company’s beer business is focused primarily on the United States, where Constellation markets and sells Mexican beer brands brewed by its production operations in Mexico.
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Key Takeaways Constellation Brands is leveraging premium labels and innovation to drive long-term growth.STZ continues to invest in its beer, wine and spirits brands to expand market share.STZ is focusing on premiumization and cost savings to strengthen margins and profitability. Constellation Brands, Inc. (STZ - Free Report) continues to pursue initiatives focused on strengthening its high-end beer portfolio, expanding distribution, driving consumer-led innovation, improving operational efficiency and maintaining financial discipline. The company’s strategy centers on building strong brands with advantaged routes to market while leveraging differentiated brand positioning, price-pack architecture and market prioritization to support growth.
Constellation Brands is strengthening its beer business through investments in its leading imported brands, including Modelo Especial, Corona Extra, Pacifico and Victoria. The company is expanding distribution across off-premise and on-premise channels while investing in additional brewery capacity to support anticipated demand. The company is also pursuing consumer-led innovation through new line extensions, package formats and products designed to address emerging consumer preferences.
Brand differentiation remains another important component of Constellation Brands’ strategy. The company’s beer portfolio is anchored by high-end imported brands, while its wine and spirits business has been repositioned toward an exclusively higher-end portfolio. STZ also continues to expand its wine and spirits brands through U.S. wholesale, international markets and direct-to-consumer channels, including hospitality, to broaden its addressable market.
Constellation Brands is also focused on maintaining market share momentum while improving operational efficiency and cash generation. Hence, Constellation Brands’ investments in its high-end beer portfolio, brewery capacity, distribution network and consumer-led innovation, along with its focus on premium wine and spirits and operational efficiency, provide several avenues to support sales growth, market-share gains and profitability.
STZ’s Price Performance, Valuation & EstimatesShares of Constellation Brands have lost 19.3% in the past six months compared with the industry’s growth of 11.1%.
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From a valuation standpoint, STZ trades at a forward price-to-earnings ratio of 10.14X compared with the industry’s average of 14.68X.
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The Zacks Consensus Estimate for STZ’s fiscal 2027 and fiscal 2028 earnings per share (EPS) indicates year-over-year growth of 0.2% and 3.6%, respectively. The company’s EPS estimate for fiscal 2027 has been stable, while that of fiscal 2028 has declined in the past seven days.
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Constellation Brands stock currently carries a Zacks Rank #3 (Hold).
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The Zacks Consensus Estimate for The Chefs' Warehouse’s current financial-year sales and earnings indicates growth of 10.6% and 33.7%, respectively, from the prior-year levels. CHEF delivered a trailing four-quarter earnings surprise of 30.4%, on average.
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The Zacks Consensus Estimate for United Natural Foods’ current financial-year sales indicates a rise of 1.3% from the prior-year level. UNFI delivered a trailing four-quarter earnings surprise of 17.9%, on average.
Medifast, Inc. (MED - Free Report) , a leading manufacturer and distributor of clinically-proven healthy living products and programs, currently carries a Zacks Rank of 2. MED missed the average earnings surprise by a sharp margin in the trailing four quarters.
The Zacks Consensus Estimate for Medifast’s current financial-year sales indicates a decline of 27.3% from the year-ago number.
Constellation Brands (NYSE:STZ – Get Free Report) and Zevia PBC (NYSE:ZVIA – Get Free Report) are both consumer staples companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, risk, earnings, profitability, valuation and dividends.
Earnings & Valuation This table compares Constellation Brands and Zevia PBC”s revenue, earnings per share (EPS) and valuation.
Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio Constellation Brands $9.76 billion 2.14 $1.69 billion $10.48 11.68 Zevia PBC $161.26 million 0.66 -$9.92 million ($0.13) -10.65 Constellation Brands has higher revenue and earnings than Zevia PBC. Zevia PBC is trading at a lower price-to-earnings ratio than Constellation Brands, indicating that it is currently the more affordable of the two stocks. Risk and Volatility Constellation Brands has a beta of 0.41, meaning that its share price is 59% less volatile than the S&P 500. Comparatively, Zevia PBC has a beta of 0.96, meaning that its share price is 4% less volatile than the S&P 500.
Institutional & Insider Ownership 77.3% of Constellation Brands shares are held by institutional investors. Comparatively, 53.2% of Zevia PBC shares are held by institutional investors. 12.2% of Constellation Brands shares are held by insiders. Comparatively, 7.7% of Zevia PBC shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Analyst Recommendations This is a breakdown of recent ratings and price targets for Constellation Brands and Zevia PBC, as provided by MarketBeat.com.
Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score Constellation Brands 2 9 12 0 2.43 Zevia PBC 1 1 2 0 2.25 Constellation Brands presently has a consensus price target of $165.14, suggesting a potential upside of 34.90%. Zevia PBC has a consensus price target of $4.50, suggesting a potential upside of 224.91%. Given Zevia PBC’s higher probable upside, analysts clearly believe Zevia PBC is more favorable than Constellation Brands.
Profitability This table compares Constellation Brands and Zevia PBC’s net margins, return on equity and return on assets.
Net Margins Return on Equity Return on Assets Constellation Brands 18.87% 25.58% 9.61% Zevia PBC -5.34% -16.92% -9.56% Summary Constellation Brands beats Zevia PBC on 12 of the 14 factors compared between the two stocks.
(Get Free Report)
Constellation Brands, Inc., together with its subsidiaries, produces, imports, markets, and sells beer, wine, and spirits in the United States, Canada, Mexico, New Zealand, and Italy. The company provides beer primarily under the Corona Extra, Corona Familiar, Corona Hard Seltzer, Corona Light, Corona Non-Alcoholic, Corona Premier, Corona Refresca, Modelo Especial, Modelo Chelada, Modelo Negra, Modelo Oro, Victoria, Vicky Chamoy, and Pacifico brands. It also offers wine under the Cook’s California Champagne, Kim Crawford, Meiomi, Mount Veeder, Ruffino, SIMI, My Favorite Neighbor, Robert Mondavi Winery, Schrader, and The Prisoner Wine Company brands; and spirits under the Casa Noble, Copper & Kings, High West, Mi CAMPO, Nelson’s Green Brier, and SVEDKA brands. The company provides its products to wholesale distributors, retailers, on-premise locations, and state alcohol beverage control agencies. Constellation Brands, Inc. was founded in 1945 and is headquartered in Victor, New York.
About Zevia PBC (Get Free Report)
Zevia PBC, a beverage company, develops, markets, sells, and distributes various carbonated beverages in the United States and Canada. It offers soda, energy drinks, organic tea, and kidz drinks. The company offers its products through a network of food, drug, warehouse club, mass, natural, convenience, and e-commerce channels, as well as grocery distributors and natural product stores and specialty outlets. It provides its products under the Zevia brand name. The company was founded in 2007 and is headquartered in Encino, California.
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Tidal Investments LLC decreased its position in Constellation Brands Inc (NYSE:STZ – Free Report) by 94.9% during the second quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 15,023 shares of the company’s stock after selling 277,766 shares during the quarter. Tidal Investments LLC’s holdings in Constellation Brands were worth $2,090,000 as of its most recent filing with the Securities and Exchange Commission (SEC).
Several other hedge funds have also modified their holdings of the company. Capital World Investors grew its holdings in shares of Constellation Brands by 8.3% in the fourth quarter. Capital World Investors now owns 7,238,575 shares of the company’s stock valued at $998,740,000 after purchasing an additional 553,974 shares in the last quarter. Capital International Investors lifted its position in Constellation Brands by 48.5% during the fourth quarter. Capital International Investors now owns 6,442,600 shares of the company’s stock valued at $888,930,000 after purchasing an additional 2,105,546 shares during the last quarter. Geode Capital Management LLC lifted its position in Constellation Brands by 1.5% during the fourth quarter. Geode Capital Management LLC now owns 3,739,549 shares of the company’s stock valued at $513,871,000 after purchasing an additional 54,184 shares during the last quarter. Van ECK Associates Corp grew its stake in shares of Constellation Brands by 11.0% in the 4th quarter. Van ECK Associates Corp now owns 2,397,275 shares of the company’s stock worth $330,728,000 after buying an additional 237,073 shares in the last quarter. Finally, Norges Bank bought a new stake in shares of Constellation Brands in the 4th quarter worth about $267,798,000. 77.34% of the stock is owned by hedge funds and other institutional investors.
Constellation Brands Price Performance Constellation Brands stock opened at $123.05 on Thursday. Constellation Brands Inc has a 12-month low of $120.25 and a 12-month high of $168.60. The company has a current ratio of 0.91, a quick ratio of 0.48 and a debt-to-equity ratio of 1.06. The firm has a 50-day moving average price of $131.00 and a 200-day moving average price of $142.18. The firm has a market capitalization of $21.01 billion, a PE ratio of 11.74, a price-to-earnings-growth ratio of 2.45 and a beta of 0.41.
Constellation Brands (NYSE:STZ – Get Free Report) last issued its quarterly earnings results on Tuesday, June 30th. The company reported $3.43 EPS for the quarter, missing the consensus estimate of $3.70 by ($0.27). Constellation Brands had a net margin of 18.87% and a return on equity of 25.58%. The firm had revenue of $2.43 billion for the quarter, compared to the consensus estimate of $2.39 billion. During the same quarter in the previous year, the company posted $3.22 earnings per share. The business’s revenue for the quarter was down 3.3% on a year-over-year basis. Constellation Brands has set its FY 2027 guidance at 11.200-11.900 EPS. As a group, equities research analysts forecast that Constellation Brands Inc will post 11.84 EPS for the current year. Constellation Brands Dividend Announcement The firm also recently announced a quarterly dividend, which was paid on Thursday, August 13th. Shareholders of record on Thursday, July 30th were given a dividend of $1.03 per share. This represents a $4.12 annualized dividend and a dividend yield of 3.3%. The ex-dividend date was Thursday, July 30th. Constellation Brands’s payout ratio is 39.31%.
Analyst Upgrades and Downgrades STZ has been the topic of several recent research reports. Weiss Ratings restated a “hold (c-)” rating on shares of Constellation Brands in a research report on Friday, July 31st. Morgan Stanley reduced their price objective on Constellation Brands from $183.00 to $158.00 and set an “equal weight” rating on the stock in a research note on Thursday, July 2nd. Roth Capital restated a “buy” rating and set a $209.00 price objective on shares of Constellation Brands in a research report on Thursday, July 2nd. Jefferies Financial Group lowered their price objective on Constellation Brands from $147.00 to $135.00 and set a “hold” rating for the company in a research note on Monday. Finally, Wells Fargo & Company dropped their target price on Constellation Brands from $185.00 to $170.00 and set an “overweight” rating for the company in a report on Monday, June 29th. Twelve analysts have rated the stock with a Buy rating, nine have issued a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat, Constellation Brands currently has an average rating of “Hold” and an average target price of $167.10.
View Our Latest Stock Report on STZ
Constellation Brands Company Profile (Free Report)
Constellation Brands, Inc (NYSE: STZ) is a beverage alcohol company that produces, markets and distributes beer, wine and spirits. Its portfolio includes well-known beer brands such as Corona Extra, Modelo Especial, Modelo Negra, Pacifico and Victoria, along with wine brands including Robert Mondavi, The Prisoner, Kim Crawford and Meiomi. Its spirits portfolio includes brands such as Casa Noble tequila and High West whiskey.
The company’s beer business is focused primarily on the United States, where Constellation markets and sells Mexican beer brands brewed by its production operations in Mexico.
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Engineers Gate Manager LP acquired a new stake in shares of Constellation Brands Inc (NYSE:STZ – Free Report) during the second quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor acquired 11,826 shares of the company’s stock, valued at approximately $1,645,000.
Several other hedge funds also recently added to or reduced their stakes in STZ. Capital World Investors increased its holdings in Constellation Brands by 8.3% in the fourth quarter. Capital World Investors now owns 7,238,575 shares of the company’s stock valued at $998,740,000 after buying an additional 553,974 shares during the last quarter. Capital International Investors lifted its holdings in Constellation Brands by 48.5% during the 4th quarter. Capital International Investors now owns 6,442,600 shares of the company’s stock worth $888,930,000 after buying an additional 2,105,546 shares during the last quarter. Geode Capital Management LLC lifted its holdings in Constellation Brands by 1.5% during the 4th quarter. Geode Capital Management LLC now owns 3,739,549 shares of the company’s stock worth $513,871,000 after buying an additional 54,184 shares during the last quarter. Van ECK Associates Corp grew its position in shares of Constellation Brands by 11.0% in the 4th quarter. Van ECK Associates Corp now owns 2,397,275 shares of the company’s stock worth $330,728,000 after acquiring an additional 237,073 shares in the last quarter. Finally, Dimensional Fund Advisors LP grew its position in shares of Constellation Brands by 5.1% in the 1st quarter. Dimensional Fund Advisors LP now owns 1,826,652 shares of the company’s stock worth $274,029,000 after acquiring an additional 88,538 shares in the last quarter. 77.34% of the stock is owned by institutional investors and hedge funds.
Constellation Brands Stock Down 0.5% Shares of Constellation Brands stock opened at $123.05 on Thursday. The stock has a market capitalization of $21.01 billion, a price-to-earnings ratio of 11.74, a PEG ratio of 2.45 and a beta of 0.41. Constellation Brands Inc has a twelve month low of $120.25 and a twelve month high of $168.60. The company has a current ratio of 0.91, a quick ratio of 0.48 and a debt-to-equity ratio of 1.06. The business’s 50 day simple moving average is $131.00 and its 200-day simple moving average is $142.18.
Constellation Brands (NYSE:STZ – Get Free Report) last released its quarterly earnings data on Tuesday, June 30th. The company reported $3.43 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $3.70 by ($0.27). The company had revenue of $2.43 billion for the quarter, compared to analyst estimates of $2.39 billion. Constellation Brands had a net margin of 18.87% and a return on equity of 25.58%. The company’s revenue for the quarter was down 3.3% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $3.22 EPS. Constellation Brands has set its FY 2027 guidance at 11.200-11.900 EPS. Equities research analysts forecast that Constellation Brands Inc will post 11.84 earnings per share for the current year. Constellation Brands Dividend Announcement The firm also recently disclosed a quarterly dividend, which was paid on Thursday, August 13th. Stockholders of record on Thursday, July 30th were given a dividend of $1.03 per share. The ex-dividend date was Thursday, July 30th. This represents a $4.12 annualized dividend and a dividend yield of 3.3%. Constellation Brands’s payout ratio is currently 39.31%.
Analyst Ratings Changes STZ has been the topic of several research reports. Bank of America dropped their price target on Constellation Brands from $152.00 to $145.00 and set an “underperform” rating on the stock in a research report on Thursday, July 2nd. BMO Capital Markets reaffirmed an “outperform” rating and issued a $190.00 price objective on shares of Constellation Brands in a report on Thursday, July 2nd. JPMorgan Chase & Co. lowered their target price on shares of Constellation Brands from $169.00 to $165.00 and set a “neutral” rating for the company in a research note on Thursday, July 2nd. BNP Paribas Exane dropped their target price on shares of Constellation Brands from $117.00 to $115.00 and set an “underperform” rating on the stock in a report on Thursday, July 2nd. Finally, Deutsche Bank Aktiengesellschaft reduced their price target on shares of Constellation Brands from $150.00 to $136.00 and set a “hold” rating on the stock in a research report on Friday, September 11th. Twelve analysts have rated the stock with a Buy rating, nine have issued a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat, Constellation Brands presently has a consensus rating of “Hold” and a consensus target price of $167.10.
Read Our Latest Report on STZ
(Free Report)
Constellation Brands, Inc (NYSE: STZ) is a beverage alcohol company that produces, markets and distributes beer, wine and spirits. Its portfolio includes well-known beer brands such as Corona Extra, Modelo Especial, Modelo Negra, Pacifico and Victoria, along with wine brands including Robert Mondavi, The Prisoner, Kim Crawford and Meiomi. Its spirits portfolio includes brands such as Casa Noble tequila and High West whiskey.
The company’s beer business is focused primarily on the United States, where Constellation markets and sells Mexican beer brands brewed by its production operations in Mexico.
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Constellation Brands: Beer Growth and Buybacks Mask Stock's SlumpConstellation Brands NYSE: STZ executives said the company is refining its growth strategy across its beer portfolio, increasing focus on consumer occasions, brand-specific playbooks and supply-chain productivity while maintaining its outlook for the current fiscal year.
Speaking at an investor conference in Boston, Chief Executive Officer Nick Fink said the company’s portfolio now requires different approaches for brands at different stages of development. While Constellation has historically been successful at scaling brands through distribution and awareness, Fink said more mature brands such as Corona require a more granular strategy centered on relevance, saliency and targeted consumer activation.
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Willing and Abel: Berkshire's New CEO Makes Huge Portfolio Changes in Q1“We’ll continue to be a brand scaler,” Fink said, citing continued growth opportunities for Modelo, Pacifico and Victoria. However, he said the company also needs to develop capabilities for sustaining larger brands and introducing products that are new to the market.
Occasion-Led Brand Strategy Fink said Constellation is shifting toward a more occasion-led view of consumer behavior as consumers, customers and distributors increasingly move across beverage categories. The company intends to identify the occasions in which it wants to compete and determine which brand in its portfolio is best positioned to win those occasions.
Spirits on the Rocks? The Battle for Jack DanielsPacifico provides one example, according to Fink. The brand is being positioned around active, adventure and sports-oriented occasions, including activations tied to the World Cup surfing championship in California. He said the company is seeking to preserve distinct brand personalities while avoiding a one-size-fits-all marketing approach for Mexican beer brands.
Fink said the World Cup was a positive event for the company, with Constellation emerging as the number-one share gainer during the tournament by nearly one share point. He said on-premise performance was strong, an area where the company believes it remains underrepresented and sees distribution opportunities.
However, he characterized off-premise performance and August Circana data as “lackluster.” Fink pointed to higher gas and diesel prices and broader macroeconomic and geopolitical pressures as factors affecting consumer activity. He said the company believes recent headwinds are cyclical but acknowledged that it will take time to determine whether increased social gatherings will have a lasting benefit for beer demand.
Consumer Pressure and Portfolio Positioning Fink said Constellation sees a generally stretched consumer outside the highest end of its portfolio. In Hispanic consumer data, he described a mixed picture: California and New York have shown less divergence between Hispanic and general-market consumers, while Florida and Texas have faced greater headwinds.
Despite consumer pressure, Fink said Constellation’s beer portfolio remains premium-priced relative to much of the market. The company has repositioned Corona Premier and Modelo Oro to a price point that it believes is more appropriate for light beer, and he said the brands have posted growth following the change.
Constellation is also testing Barrilito in parts of Texas, Fresno and several other states. Fink said the product has been less cannibalistic to the broader portfolio than the company initially feared. He described Barrilito as a relatively low-alcohol, lower-calorie beer serving a different consumer routine, while emphasizing that Constellation will proceed carefully to protect its premium positioning.
On Corona Extra, Fink said the company has already moved from diagnosis to execution following weaker consumption trends. He said the brand has improved from losing share to roughly holding share, with better performance in markets including New York and Miami. The initial effort has included increased spending, activation, added pack-size distribution and on-premise activity.
“There’s nothing in Corona that is broken,” Fink said, calling it the most loved beer brand and the most famous Hispanic brand in the world. Future plans will focus more specifically on cultural relevance, on-premise occasions and pack-price architecture, including the company’s growing 7-ounce format.
Modelo Runway and Operating Savings Fink said Modelo still has room to expand nationally. In strong markets such as California, the company sees opportunities in inland, urban and submarket areas. In markets including New York, Miami, Dallas and Chicago, he said there remains opportunity to increase share and distribution. Elsewhere, particularly toward the center of the country, Modelo awareness remains low despite its position as the number-one dollar-share brand.
He said Constellation estimates a 20-point national distribution gap relative to domestic beer brands. Pacifico, meanwhile, recently entered the top 10 and continues to post double-digit growth, according to Fink. He said the company is deliberately pacing distribution growth with consumer velocity to avoid overextending newer brands.
Executive Vice President and Chief Financial Officer Garth Hankinson said Constellation has transitioned from an extended brewery-building phase to a greater operating focus. The company spent nearly $1 billion annually over the past decade to expand production capacity, primarily at Nava and Obregón and more recently at Veracruz, he said.
Since shifting toward supply-chain efficiency, Hankinson said the company has generated more than $600 million in savings from procurement, logistics and operations. He said the company expects continuing savings opportunities but also expects gross-profit margin pressure during the second half of the fiscal year from trucking conditions and commodity exposure, despite being highly hedged entering the year.
Hankinson said Constellation remains aligned with the full-year guidance it provided in April. He also said operating margins in the second half will be lower than in the first half due to seasonal patterns, inflationary pressures and increased marketing investment in the third and fourth quarters.
Wine, Spirits and Capital Allocation Fink said Constellation’s wine and spirits portfolio has benefited from efforts to focus on categories where it expects growth. He said the segment grew 8% in the prior quarter and has outperformed the broader market for 18 consecutive months. He highlighted fine wine as well as brands including Mi Campo, The Prisoner, Kim Crawford and Ruffino.
Hankinson said the wine and spirits business is expected to produce margins in the 5% to 6% range this year, with improvement anticipated in future fiscal years. He said distributor inventory normalization may take 12 to 24 months and that inventory and operational changes will take several years to fully flow through the profit-and-loss statement.
On capital allocation, Hankinson said Constellation plans to maintain an investment-grade balance sheet, invest in organic and inorganic growth opportunities, and return capital through its dividend and share-repurchase program. He noted the dividend has a 30% payout and said significant capacity remains under the company’s $4 billion repurchase authorization.
About Constellation Brands (NYSE:STZ)Constellation Brands, Inc NYSE: STZ is a beverage alcohol company that produces, markets and distributes beer, wine and spirits. Its portfolio includes well-known beer brands such as Corona Extra, Modelo Especial, Modelo Negra, Pacifico and Victoria, along with wine brands including Robert Mondavi, The Prisoner, Kim Crawford and Meiomi. Its spirits portfolio includes brands such as Casa Noble tequila and High West whiskey.
The company's beer business is focused primarily on the United States, where Constellation markets and sells Mexican beer brands brewed by its production operations in Mexico.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
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