Corona-maker Constellation Brands beats estimates, shares jump 2%

Investing.com -- Constellation Brands Inc Class A (NYSE: STZ) reported first-quarter results that exceeded Wall Street expectations, with adjusted earnings per share of $3.43 beating the analyst consensus of $3.25 by $0.18. Revenue of $2.43 billion also topped estimates of $2.41 billion, though it declined 3% YoY from the prior year period.

The company’s beer business drove the performance, with net sales growing 2% to $2.28 billion and operating income rising 2% to $891.4 million. Beer shipments increased 1.8%, while the segment maintained its position as the number one dollar share gainer in U.S. tracked channels. The wine and spirits business reported organic net sales growth of 8%, though reported net sales declined 47% due to the 2025 wine divestitures. Shares rose 2.2% in after-hours trading Tuesday.

"Our portfolio continues to benefit from the strength of our brands, disciplined commercial execution, and our ability to connect with consumers across a broad range of occasions," said Nicholas Fink, President and CEO.

For fiscal 2027, Constellation affirmed its adjusted EPS guidance of $11.20 to $11.90. The midpoint of $11.55 falls below the analyst consensus of $11.74. The company expects enterprise organic net sales growth of -1% to 1% and free cash flow of $1.6 billion to $1.7 billion.

The beer segment saw mixed depletion results, with Modelo Especial declining approximately 2% and Corona Extra falling over 5%, while Pacifico, Victoria, and Modelo Chelada brands grew 21%, 14%, and 6% respectively. The company generated operating cash flow of $662 million and free cash flow of $485 million, up 4% and 9% respectively.

Constellation returned over $400 million to shareholders through $324 million in share repurchases and dividends during the quarter.

You May Also Be Interested In

• STMicroelectronics N.V. (STM) Tops Q2 EPS by 6c; offers guidance
• First Reliance Bancshares, Inc. (FSRL) Reports In-Line Q2 EPS
• Es Bancshares, Inc. (ESBS) Tops Q2 EPS by 13c