STZ

- In early October 2026, Constellation Brands reported past second-quarter results showing higher sales of US$2,816.7 million, revenue of US$2,633 million, and net income of US$565.8 million versus the prior year, while affirming a quarterly dividend of US$1.03 per share. - Alongside this earnings beat, the company agreed to acquire spirit-based ready-to-drink brand SpikedAde, underscoring its push into convenience-focused flavored alcohol formats and newer drinking occasions. - With this combination of stronger earnings and the SpikedAde acquisition, we'll now examine how the news may reshape Constellation's investment narrative. The best AI stocks today may lie beyond giants like Nvidia and Microsoft. Find the next big opportunity with these 18 smaller AI-focused companies with strong growth potential through early-stage innovation in machine learning, automation, and data intelligence that could fund your retirement. To own Constellation Brands, you need to be comfortable with a beer led story that depends on premium Mexican labels, marketing execution and disciplined cost control, while accepting real pressure from softer beer demand and thin Wine & Spirits margins. The latest Q2 beat and SpikedAde deal support the near term earnings and innovation catalyst, but do not remove the key risk that tariffs, a stretched Hispanic consumer and low Wine & Spirits profitability could still squeeze margins. Among the recent news, the reaffirmed fiscal 2027 comparable EPS outlook of US$11.20 to US$11.90 stands out alongside the earnings beat. It reinforces the idea that cost savings, Pacifico's rise into the top 10 beer brands and occasion based innovation like SpikedAde remain central to the thesis, even as management also acknowledges weaker depletions in some core beers and ongoing margin pressure in Wine & Spirits. Yet behind the stronger quarter, investors should still be aware of the risk that tariff driven cost inflation and a stretched core beer consumer could... Read the full narrative on Constellation Brands (it's free!) Constellation Brands' narrative projects $9.5 billion revenue and $2.1 billion earnings by 2029. This requires 1.6% yearly revenue growth and a $0.3 billion earnings increase from $1.8 billion today. Uncover how Constellation Brands' forecasts yield a $163.35 fair value, a 32% upside to its current price. Some of the most cautious analysts were assuming revenue would actually shrink about 1.1 percent a year to around US$8.8 billion, even if margins improved, so compared with the consensus they paint a much tougher backdrop where higher fixed costs and marketing spend crowd the benefit of innovations like SpikedAde and efficiency gains, reminding you that reasonable people can look at the same Q2 beat and reach very different conclusions. Explore 7 other fair value estimates on Constellation Brands - why the stock might be worth 9% less than the current price! Don't just follow the ticker - dig into the data and build a conviction that's truly your own. - A great starting point for your Constellation Brands research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision. - Our free Constellation Brands research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Constellation Brands' overall financial health at a glance. Our top stock finds are flying under the radar-for now. Get in early: - Explore 25 top quantum computing companies leading the revolution in next-gen technology and shaping the future with breakthroughs in quantum algorithms, superconducting qubits, and cutting-edge research. - Rare earth metals are an input to most high-tech devices, military and defence systems and electric vehicles. The global race is on to secure supply of these critical minerals. Beat the pack to uncover the 33 best rare earth metal stocks of the very few that mine this essential strategic resource. - AI is about to change healthcare. These 32 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10b in market cap - there's still time to get in early. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include STZ. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Constellation Brands (STZ) moved back into focus after reporting second quarter results and reaffirming its dividend. Earnings, sales and cash returns all landed on the same day, giving investors fresh numbers to reassess the stock. Constellation Brands has enjoyed a sharp short-term rebound, with a 1-day share price return of 4.43% and a 7-day gain of 9.42%. However, the 90-day share price return declined 7.78% and the 1-year total shareholder return fell 11%, pointing to improving momentum after a tougher stretch for long-term holders. Scan how Constellation Brands compares with other consumer stocks that are showing renewed momentum and earnings power using our curated list of 20 high quality undiscovered gems. Constellation Brands now trades well below both its own analyst target and an internal fair value estimate range. After this latest jump, is the gap still wide enough to suggest meaningful mispricing, or is it already largely closed? In the most followed narrative, Constellation Brands' fair value is estimated at $163.35 compared with a last close of $123.63. This points to a wide gap that depends heavily on execution in its core beer portfolio and a rebound in Wine & Spirits margins. Constellation Brands is shifting from a period of heavy brewery buildout to an operator mindset, and the company has already booked more than US$600 million of cost savings in procurement, logistics and operations. These savings can continue to support net margins as further annual efficiency programs are reflected in earnings. See why 83 investors see Constellation Brands as 24% undervalued. Result: Fair Value of $163.35 (UNDERVALUED) Still, higher tariffs on Wine & Spirits and a prolonged squeeze on key Hispanic consumers could easily undercut the Constellation Brands margin recovery story. Find out about the key risks to this Constellation Brands narrative. Mixed signals on Constellation Brands so far, with clear upside arguments and clear risks on the table, mean you should press into the data yourself and decide where you land. To see both sides set out in one place, review the 4 key rewards and 1 important warning sign. If you only stop at Constellation Brands, you risk missing other opportunities where quality, income, and resilience might line up better with your plan. - Target dependable cash generators by scanning our broad universe for 27 high quality undervalued stocks that pair robust fundamentals with attractive pricing. - Build a payout-focused watchlist by zeroing in on 8 dividend fortresses that could help anchor portfolio income. - Prioritise resilience over excitement by checking a 31 resilient stocks with low risk scores that screens for sturdier balance sheets and calmer return profiles. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include STZ. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

- PepsiCo reported quarterly profit and revenue above Wall Street expectations, helped by stronger international performance. - Levi Strauss posted adjusted EPS of $0.48 versus $0.36 expected, but roughly $0.11 of the beat came from about $80 million in tariff refunds. - Constellation Brands faced multiple analyst target cuts, with Needham, Piper Sandler, Morgan Stanley and UBS all lowering their targets. Levi Strauss & Co. (LEVI), PepsiCo (PEP) and Constellation Brands (STZ) were in focus in premarket trading on Thursday, with LEVI and STZ shares under pressure while PepsiCo moved higher after quarterly results. Levi Strauss beat profit expectations but lowered its full-year revenue growth guidance, while PepsiCo topped quarterly estimates but cut its full-year earnings forecast. Constellation Brands faced a series of analyst price-target cuts and a downgrade. See what 10M+ investors are talking about. Get the Stocktwits Daily Rip for what retail is watching right now, free to your inbox Levi Strauss & Co. shares fell about 1.2% premarket to $19.28 as investors assessed its fiscal third-quarter results, which beat profit expectations but missed on revenue. The company reported adjusted earnings of $0.48 per share, compared with Wall Street expectations of $0.36. However, about $0.11 of the earnings outperformance came from roughly $80 million in tariff refunds received under the International Emergency Economic Powers Act, net of the amount redeployed into promotions and marketing. The denim retailer lowered its full-year revenue growth guidance but raised its profit outlook. PepsiCo stock rose about 1% premarket after the company reported higher profit and revenue in its fiscal third quarter, with both results topping analysts' expectations. International growth helped the company's performance, while its North American business continued to lag. PepsiCo lowered its full-year earnings forecast, with core earnings per share now expected to increase 2.5% to 3.5%, compared with its previous projection of 5% to 7%. The company also expects net revenue growth of about 6%, at the high end of its previous 4% to 6% range. Constellation Brands shares were down after a series of analyst price-target reductions. Needham lowered its price target to $150 from $185, while Piper Sandler cut its target to $125 from $161. Morgan Stanley lowered its target to $145 from $158, and UBS reduced its target to $144 from $145. HSBC also downgraded Constellation Brands to Hold from Buy. On Stocktwits, retail sentiment for LEVI and STZ was 'bullish,' with message volume being 'extremely high' for both. For PEP, the sentiment was 'extremely bullish,' while message volume was 'high.' Year to date, LEVI stock is down around 7%, while PEP shares have declined 14% and STZ stock is down about 15%. Also See: PLTR Stock Is Just $8 Away From Making Another Record High, Goldman Sees A 'Step Function Change' In Palantir's AI Opportunity For updates and corrections, email newsroom[at]stocktwits[dot]com. Aveek Bhowmik has no position in any of the stocks mentioned in this article. StockTwits' news team content is for informational purposes only and is not intended as investment advice. For more, see our editorial policy. This article was originally published on StockTwits. Related: - PEP Stock Looks To Snap 6-Week Losing Streak: Goldman Sachs Trims Price Target But Sees 'Decade Of Growth' For PepsiCo - Two More Fed Rate Hikes Likely After Governor Waller's Hawkish Remarks: Goldman Sachs - ASTS Stock Slides After-Hours As SpaceX Snags Grain Spectrum: Analyst Who Called The Deal Says 'Ligado Is Next'

- Interested in Constellation Brands Inc? Here are five stocks we like better. - Constellation Brands beat second-quarter revenue and earnings estimates, but weak forward guidance suggests consumers are cutting back on alcohol purchases. - Constellation Brands maintained its comparable earnings outlook and organic sales range, although management said improving September trends could support the high end of the range. - STZ stock trades near 10-year lows and about 10 times earnings guidance, leaving investors divided over whether it is a bargain or a value trap. 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. → Morgan Stanley Is Bullish on Apple—But With a Catch 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. But 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. → The AI Boom's Next Big Winners May Wear Hard Hats 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 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. → Disney Is Opening the Door to Netflix—and Changing the Streaming Playbook 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. 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. The 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. 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 The article "Constellation Brands Beat Earnings, But Beer Demand Is Still a Problem" was originally published by MarketBeat. View MarketBeat's top stocks for October 2026.

Constellation Brands, Inc. STZ 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. President 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 Brands Inc price-consensus-eps-surprise-chart | Constellation Brands Inc Quote Distributor 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. Constellation 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. Management 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. Beer 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. Management 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. Management'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. STZ 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. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Constellation Brands Inc (STZ) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Constellation Brands delivered a positive third quarter, with revenue growth surpassing Wall Street expectations and a solid non-GAAP profit performance. Management attributed this outperformance to increased marketing investments, particularly in its beer segment and the ongoing success of brands like Pacifico and Modelo. CEO Nicholas Fink highlighted the company's position as the leading dollar share gainer in beverage alcohol, emphasizing that "our beer business outperformed and accelerated meaningfully quarter-on-quarter." The company also noted progress in rebuilding distributor inventory levels, which had previously been below historical norms, helping to support product availability and sales momentum across key markets. Is now the time to buy STZ? Find out in our full research report (it's free). - Revenue: $2.63 billion vs analyst estimates of $2.53 billion (6.1% year-on-year growth, 3.9% beat) - Adjusted EPS: $3.74 vs analyst estimates of $3.55 (5.5% beat) - The company reconfirmed its revenue guidance for the full year of $9 billion at the midpoint - Management reiterated its full-year Adjusted EPS guidance of $11.55 at the midpoint - Operating Margin: 30.6%, down from 35.2% in the same quarter last year - Market Capitalization: $20.22 billion While we enjoy listening to the management's commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. - Nik Modi (RBC) asked for clarity on what is driving September improvement and inventory normalization. CEO Nicholas Fink explained the acceleration is not only due to timing shifts but also strong consumer response to marketing programs. - Peter Galbo (Bank of America) inquired about the impact of inventory rebuilds on future shipment-depletion dynamics. Fink described inventory levels as now more balanced and expects shipments and depletions to closely track for the remainder of the year. - Lauren Lieberman (Barclays) questioned opportunities for further cost discipline and reinvestment for growth. Fink emphasized ongoing systematic cost programs to free up resources for brand-building and innovation. - Chris Carey (Wells Fargo) probed the expectation for improved gross margins in the second half despite inflationary pressures. CFO Garth Hankinson outlined seasonality effects, ongoing cost controls, and a continued focus on marketing-driven growth as supporting factors. - Dara Mohsenian (Morgan Stanley) explored the rationale behind M&A in the RTD space and future expansion plans. Fink detailed that RTD acquisitions like SpikedAde are approached cautiously to ensure sustainability and fit with distribution strengths. Looking ahead, the StockStory team will be monitoring (1) the pace and effectiveness of marketing-driven share gains in beer and emerging categories, (2) continued improvements in cost discipline and their impact on operating margins, and (3) the integration and performance of new acquisitions like SpikedAde in the growing RTD segment. Progress in inventory management and success in brand innovation will also serve as key indicators of execution. Constellation Brands currently trades at $117.65, up from $116.10 just before the earnings. Is the company at an inflection point that warrants a buy or sell? See for yourself in our full research report (it's free for active Edge members). ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies. Our AI system flagged Palantir before it ran 1,662% between October 2022 and February 2026. AppLovin before it ran 753% between February 2024 and February 2026. Nvidia before it ran 1,178% between January 2023 and February 2026. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.

- Interested in Constellation Brands Inc? Here are five stocks we like better. - Constellation Brands maintained its fiscal 2027 comparable EPS outlook of $11.20–$11.90 after second-quarter results exceeded expectations, with favorable September trends potentially pushing results toward the high end. - Beer performance improved meaningfully, supported by healthier distributor inventories, increased marketing investment and stronger brand trends. Pacifico grew about 20% year to date, while Victoria posted mid-teens growth. - The company repurchased $530 million of stock year to date and has $2.5 billion remaining under its authorization, while continuing selective acquisitions such as SpikedAde and advancing its Veracruz brewery toward an early fiscal 2028 launch. - Constellation Brands: Beer Growth and Buybacks Mask Stock's Slump Constellation 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. → 5 Oversold Corners of the Market That Could Bounce If Breadth Finally Improves - 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. 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. → First Citizens BancShares vs MP Materials: A Tale of 2 Regulation Bets - Spirits on the Rocks? The Battle for Jack Daniels The 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. → Insiders Are Selling These 3 Stocks, Should You? 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. 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. 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. 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. 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]. The article "Constellation Brands Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for October 2026.

Constellation Brands reported second-quarter fiscal 2027 results Tuesday showing net income of $565.8 million, or $3.32 a share, up from $466.0 million, or $2.65 a share, a year earlier. Net sales rose 6% to $2.63 billion, with beer revenue up 5% and wine and spirits revenue up 17%. On a comparable basis, the company earned $3.74 per share, topping the $3.55 analyst estimate, according to The Wall Street Journal. Revenue also exceeded the analyst consensus forecast of $2.54 billion, according to the Journal. In the beer segment, shipment volumes rose 5.5% and operating income grew 1% to $964.2 million, the company said. Depletions — a measure of how much distributors sell through to retailers — slipped 0.6%, with declines in Modelo Especial of about 2% and Corona Extra of about 5%, offset by gains in Pacifico, Victoria, and the Modelo Chelada brands of approximately 19%, 15%, and 5%, respectively. The beer business ranked as the top dollar and volume share gainer in Circana U.S. tracked channels during the quarter. The wine and spirits segment swung to a $6.1 million operating profit from a $19.8 million operating loss a year earlier, the company said. The segment's sales growth was driven by a 15.4% increase in shipment volumes, with depletions rising 10.2%, led by Kim Crawford and Mi CAMPO tequila. On-premise demand helped cushion weakness in retail store sales during the quarter, according to the Journal. Rather than pushing through broad price hikes amid a cautious spending environment, Constellation leaned on volume growth as the primary driver of its revenue increase, the Journal reported. "Looking ahead, we remain focused on building on this momentum by expanding our reach across more consumers and occasions, while investing behind the brands and capabilities that will support our next phase of growth," Chief Executive Officer Nicholas Fink said in a statement. The company also announced it acquired SpikedAde, a spirit-based ready-to-drink brand, for $75 million at close, with up to $278 million in additional contingent payments over five years tied to the brand's performance, the company said. Constellation raised its full-year reported EPS outlook to $11.85 to $12.55, up from a prior range of $11.50 to $12.20, and reaffirmed its comparable EPS outlook of $11.20 to $11.90. The company also reaffirmed operating cash flow guidance of $2.4 to $2.5 billion and free cash flow guidance of $1.6 to $1.7 billion. The results follow a first quarter in which Constellation reported a 3.3% decline in net sales to $2.43 billion, as softening consumer demand weighed on the top line. At that time, executives flagged that purchases from Hispanic consumers — a group accounting for roughly half of its beer buyers — had been held back by cost-of-living pressures, though they said the gap appeared to be narrowing.

US stock futures moved slightly lower on Wednesday as investors awaited minutes from the Federal Reserve's September policy meeting, while corporate developments at SpaceX, Constellation Brands and Levi Strauss were also in focus. At 06:56 GMT, Dow futures were down 108 points, or 0.2%, while S&P 500 futures were broadly unchanged. Nasdaq 100 futures declined 28 points, or 0.1%. The main Wall Street indices closed slightly higher in the previous session, although they finished below their intraday highs. US and French government bond markets stabilised following recent selling, although benchmark 10-year yields moved higher. Analysts at Vital Knowledge said investors remained uncertain that "this asset class can sustain a material rally", citing increased artificial intelligence investment and an expected "tidal wave" of debt issuance. Oil prices initially declined before recovering as investors assessed Middle Eastern crude shipments, transportation costs and the availability of refined products. The Federal Reserve is due to release minutes from its September meeting, when policymakers increased interest rates for the first time since 2023. The Fed's projections indicated the possibility of further rate increases before the end of the year as policymakers continued to address inflation, which has remained above the central bank's 2% target. However, market expectations for another increase at the Fed's next meeting have declined following comments from policymakers and weaker-than-expected employment data. The minutes could provide additional information about policymakers' views on inflation, employment and the future path of interest rates. SpaceX (NASDAQ:SPCX) is seeking to raise approximately $40 billion to finance purchases of Nvidia (NASDAQ:NVDA) chips, according to a Financial Times report citing people familiar with the matter. The proposed financing would include approximately $10 billion in bank loans and $30 billion of investment-grade debt, according to the report. Apollo Global (NYSE:APO) is expected to lead the financing and assist with marketing the debt, while Pimco is reportedly among a group of potential lenders. The financing would support purchases of computing infrastructure used for artificial intelligence. Elon Musk has previously said SpaceX would exclusively use Nvidia chips in its Colossus data centres. Constellation Brands (NYSE:STZ) shares declined in after-hours trading despite the company reporting second-quarter adjusted earnings and sales above market expectations. Net sales for the quarter ended August 31 increased 6% to $2.63 billion, while adjusted earnings per share reached $3.74. Both figures exceeded Wall Street expectations, according to LSEG data cited by Reuters. Beer depletions, which measure distributor sales to retail accounts, declined 0.6%. TD Cowen analysts said the figure was 70 basis points below expectations. Constellation maintained its full-year financial guidance. TD Cowen said the guidance implies that second-half sales "will be down [roughly] 2% at the midpoint." Constellation also said it would pay $75 million following the completion of its acquisition of vodka-based ready-to-drink beverage company SpikedAde, with potential additional payments of up to $278 million over five years. Levi Strauss (NYSE:LEVI) is scheduled to report its results after Wednesday's closing bell. The company's shares have declined by more than 1% since the beginning of the year, despite Levi Strauss raising its full-year profit outlook in July. At the time, Chief Executive Michelle Gass said the company was seeking to capture a "sizable premium segment" that it had not previously accessed. Levi Strauss has introduced baggier styles aimed at younger consumers while expanding its higher-margin direct-to-consumer operations. SpaceX stock price Nvidia stock price Constellation Brands stock price Levi Strauss & Co stock price Apollo Global Management stock price

Constellation Brands, Inc. STZ 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 Beer 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. Wine 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. Constellation Brands Inc price-consensus-eps-surprise-chart | Constellation Brands Inc Quote Comparable 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%. For 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. Subsequent 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. Constellation 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. The Chefs' Warehouse, Inc. CHEF, 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, 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, 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. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Constellation Brands Inc (STZ) : Free Stock Analysis Report Darling Ingredients Inc. (DAR) : Free Stock Analysis Report The Chefs' Warehouse, Inc. (CHEF) : Free Stock Analysis Report Utz Brands, Inc. (UTZ) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research