Constellation Brands, Inc. produces, imports, markets, and sells beer, wine, and spirits across the United States, Canada, Mexico, New Zealand, and Italy. Its beer brands include Corona Extra, Modelo Especial, and Pacifico, among others. The company also offers wine brands such as Robert Mondavi Winery and The Prisoner Wine Company, and spirits brands including Casa Noble and High West. Founded in 1945, it is headquartered in Rochester, New York, and distributes to wholesalers, retailers, and state alcohol beverage control agencies.
Why is Constellation Brands Inc Class A (STZ) moving?
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STZ beats Q2 but weak beer demand and soft guidance drag shares
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Costs to squeeze margins Constellation warned that higher transport and commodity costs will compress gross margins in the second half, sending shares down over 4%. Rising costs eat into profit even when sales hold up, so investors marked the stock lower.
Explains a concrete profit headwind behind the period's weakness.
Q2 beat, but full-year outlook short Quarterly EPS of $3.74 and revenue of $2.63 billion beat estimates, yet the reaffirmed full-year profit midpoint of $11.55 came in below the roughly $11.72 analysts expected. A beat that still guides light leaves investors focused on the softer future.
The guidance miss is the main reason shares fell despite the earnings beat.
Core beer brands losing drinkers Total beer shipments fell 0.6%, with Modelo Especial down about 2% and Corona Extra down about 5%; growth came only from smaller brands. If the flagship beers are shrinking, future sales and profit are at risk, which weighs on the stock.
Weak demand for STZ's biggest brands is the core worry behind the selloff.
Inventory rebuild may flatter sales Beer sales rose 5%, but the company shipped extra cases so distributors could restock, which can make demand look stronger than it is. If consumer buying stays soft, those shipments may not repeat, casting doubt on the growth.
Questions whether reported growth reflects real consumer demand, a key risk to the story.
Constellation Brands Beats Q2 Estimates and Agrees to Acquire SpikedAde
Constellation Brands reported past second-quarter results with 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 the earnings beat, the company agreed to acquire spirit-based ready-to-drink brand SpikedAde, extending its push into convenience-focused flavored alcohol formats and newer drinking occasions. The company also reaffirmed its fiscal 2027 comparable EPS outlook of US$11.20 to US$11.90, a figure that stands out among recent news and reinforces the role of cost savings, Pacifico's rise into the top 10 beer brands, and occasion-based innovation in the investment case. Management nonetheless acknowledged weaker depletions in some core beers and ongoing margin pressure in Wine & Spirits, with tariff-driven cost inflation and a stretched core beer consumer remaining key risks. Constellation Brands' narrative projects US$9.5 billion in revenue and US$2.1 billion in earnings by 2029, requiring 1.6% yearly revenue growth and a US$0.3 billion earnings increase from US$1.8 billion today, while some cautious analysts assume revenue shrinking about 1.1 percent a year to around US$8.8 billion.
Constellation Brands reported second quarter fiscal 2027 revenues of $2.63 billion, surpassing the Zacks Consensus Estimate by 2.46%, sending its shares up 2.4%. Penguin Solutions reported fourth quarter 2026 revenues of $566.69 million, beating the Zacks Consensus Estimate by 10.57%, and its shares surged 13.1%. Space Exploration Technologies Corp. shares fell 2.5% after Bloomberg reported the company is seeking to raise $40 billion in new debt to purchase Nvidia chips for its data centers. Moderna shares rose 4.8% as health emerged as one of the biggest-gaining sectors in the session.
Constellation Brands reported third-quarter revenue of $2.63 billion, beating analyst estimates of $2.53 billion with 6.1% year-on-year growth, while adjusted EPS came in at $3.74 against estimates of $3.55. The company reconfirmed its full-year revenue guidance of $9 billion at the midpoint and reiterated full-year adjusted EPS guidance of $11.55 at the midpoint. Operating margin fell to 30.6% from 35.2% a year earlier, and market capitalization stands at $20.22 billion. On the earnings call, CEO Nicholas Fink said the beer business outperformed and accelerated meaningfully quarter-on-quarter, crediting marketing investments and brands like Pacifico and Modelo, and noted distributor inventory levels are now more balanced. CFO Garth Hankinson pointed to seasonality effects and ongoing cost controls as supporting improved gross margins in the second half, while Fink said RTD acquisitions such as SpikedAde are approached cautiously to ensure sustainability and fit with distribution strengths.
Coca-Cola Adds Prebiotic Fiber Soda as Constellation Buys Spiked for Up to $353 Million
Coca-Cola is adding a zero-sugar prebiotic soda to its lineup, Coca-Cola Zero Sugar with 6 grams of prebiotic fiber, with the same fiber option also coming to Sprite Zero Sugar and Fresca in a pilot starting this month in parts of New York, New Jersey and Pennsylvania. Separately, Semaphore reported that Chipotle Mexican Grill is tapping bankers amid takeover concerns, with one theory under discussion being a potential tie-up between Chipotle and Starbucks, though no bid is on the table and supporters argue the companies could combine operations in real estate while keeping the brands separate. Constellation Brands, the Modelo and Corona maker, beat Wall Street's earnings expectations with beer sales rising 5%, even as sales of Modelo Especial and Corona Extra declined, and the company also announced the acquisition of ready-to-drink brand Spiked in a deal potentially worth up to $353 million.
Webull Plunges 20% After Congressional Panel Flags China Ties as Security Risk
Webull shares tumbled 20% after CNBC reported that a congressional panel found the brokerage's ties to the Chinese government create a national security risk. Banks also fell as longer-dated Treasury yields rose to levels not seen in 24 years, with Citigroup, Wells Fargo and Goldman Sachs each down nearly 2%, while JPMorgan Chase, Bank of America and Morgan Stanley each slipped around 1%. Worthington Steel dropped 10% after first-quarter adjusted earnings of 57 cents per share came in sharply below the 77 cents a share reported a year earlier, results that reflect the impact of its acquisition of a majority interest in Klöckner & Co. Penguin Solutions jumped 15% on fourth-quarter adjusted earnings of $1 per share and revenue of $566.7 million, beating the 77 cents per share and $521 million analysts polled by FactSet expected. Constellation Brands added 2% on better-than-expected fiscal second-quarter results, earning $3.74 per share on revenue of $2.63 billion versus FactSet consensus of $3.55 per share and $2.54 billion, while Micron rose 3% after D.A. Davidson said it expects the chipmaker to triple, and NetApp gained 3% on an Evercore ISI upgrade to outperform from in line.
BULL · Regulation · Negative Congressional panel flagged Webull's China ties as a national security risk, sending shares down 20%.
PENG · Capital · Positive Penguin Solutions beat Q4 earnings and revenue estimates, jumping 15%.
STZ · Capital · Positive Constellation Brands beat fiscal Q2 earnings and revenue expectations, adding 2%.
WS · Capital · Negative First-quarter adjusted earnings of 57 cents per share came in sharply below the 77 cents a year earlier, reflecting the Klöckner acquisition.
MU · Capital · Positive D.A. Davidson said it expects Micron to triple, lifting shares 3%.
NTAP · Capital · Positive Evercore ISI upgraded NetApp to outperform from in line, sending shares up 3%.
Constellation Brands Falls on Earnings as Intel Rises on Terafab
Constellation Brands shares fell after the maker of Modelo Especial and Corona Extra reaffirmed its comparable earnings per share forecast for the full year and announced the acquisition of SpikedAde, a vodka-based drink brand. SpaceX shares were lower as Elon Musk's company is in talks with banks and investors to raise $40 billion to buy chips from Nvidia, with Pacific Investment Management Co. and Apollo Global Management Inc. involved in the early-stage discussions that could end without a deal. Intel shares rose as CEO Lip-Bu Tan said the company will continue working with Elon Musk on Terafab, after Musk responded on X to speculation that TSMC would play a larger role in the chip plant, saying, "we will build and run the fab."
Artificial Intelligence › AI Compute & Accelerator Silicon Capital
STZ · Capital · Negative Constellation Brands shares fell after reaffirming its full-year comparable EPS forecast and announcing the SpikedAde acquisition.
INTC · Technology · Positive CEO Lip-Bu Tan said Intel will continue working with Elon Musk on Terafab, with Musk saying 'we will build and run the fab.'
SPCX · Capital · Neutral SpaceX is in talks with banks and investors to raise $40 billion to buy chips from Nvidia, an early-stage deal that could fall through.
NVDA · Demand · Neutral SpaceX is in talks to raise $40B to buy chips from Nvidia, though the discussions are early-stage and could end without a deal.
APO · Capital · Neutral PIMCO and Apollo are in early-stage talks to help fund SpaceX's $40B chip purchase, a deal that could end without agreement.
Neogen raised its fiscal year guidance, sending shares up 11% premarket, with the food safety company now projecting revenue of $885 million to $890 million versus its earlier range of $880 million to $885 million and the FactSet consensus of $883.2 million. Penguin Solutions climbed more than 4% after fourth quarter adjusted earnings of $1 per share on revenue of $566.7 million beat the 77 cents per share and $521 million analysts polled by FactSet expected. Constellation Brands fell 5% even after reporting better-than-expected fiscal second quarter results, with earnings of $3.74 per share on revenue of $2.63 billion against analyst expectations of $3.56 per share on revenue of $2.54 billion, as beer operating margins decreased 160 basis points year on year and depletions fell slightly. Flutter Entertainment rose nearly 3% after Citi upgraded the FanDuel parent to buy from neutral, saying recent share price weakness on Brazil and September US sports results concerns are overblown.
Constellation Brands Falls on Guidance, SpaceX Debt Plan Weighs on Premarket
Constellation Brands shares fell 4.9% in premarket trading after the company's fiscal second-quarter 2027 results beat on earnings and revenue but its full-year profit outlook came in below analyst expectations. The company reported adjusted earnings of $3.74 per share, above consensus estimates of roughly $3.55 to $3.61, while net sales rose 6% year over year to $2.63 billion, topping the $2.54 billion estimate, but its reaffirmed fiscal 2027 adjusted EPS guidance of $11.20 to $11.90 carried a midpoint of $11.55, below the analyst consensus of about $11.72. Beer volumes remained weak, with Modelo Especial depletions down roughly 2% and Corona Extra down about 5%, bringing total beer depletions down 0.6% for the quarter, and the company also announced the acquisition of SpikedAde, a vodka-based, zero-sugar ready-to-drink beverage brand, for $75 million upfront plus up to $278 million in contingent payments over five years. Elsewhere in premarket trading, Intel shares rose 1% to around $113.50 after Elon Musk said TSMC will not own or operate the planned Terafab AI chip complex in Texas, easing concerns Intel could lose its role in the project, while Sigma Lithium shares surged nearly 5.9% after a Brazilian Federal Court of Appeals granted emergency suspensive relief upholding its environmental licenses at the Grota do Cirilo complex in Minas Gerais. Space Exploration Technologies shares slid 1.9% after a report said the company is seeking to raise $40 billion in debt to fund a massive Nvidia AI chip order, consisting of roughly $10 billion in bank loans and $30 billion in investment-grade bonds, with Apollo Global Management expected to lead the deal and Pimco among the lenders in early discussions.
Artificial Intelligence › Custom Silicon / ASIC Capital
STZ · Capital · Negative Constellation Brands' reaffirmed fiscal 2027 adjusted EPS guidance midpoint of $11.55 came in below analyst consensus of about $11.72.
STZ · Demand · Negative Beer volumes remained weak, with Modelo Especial depletions down ~2% and Corona Extra down ~5%, total beer depletions down 0.6%.
SGML · Regulation · Positive A Brazilian Federal Court of Appeals granted emergency suspensive relief upholding Sigma Lithium's environmental licenses at the Grota do Cirilo complex.
SPCX · Capital · Negative SpaceX is seeking to raise $40 billion in debt (bank loans plus investment-grade bonds) to fund a massive Nvidia AI chip order.
INTC · Competition · Positive Musk said TSMC will not own or operate the planned Terafab AI chip complex in Texas, easing concerns Intel could lose its role in the project.
Constellation Brands Beats Q2 Estimates With $3.74 EPS and $2.63 Billion Revenue
Constellation Brands reported quarterly earnings of $3.74 per share, beating the Zacks Consensus Estimate of $3.62 per share and topping last year's $3.63 per share. The result marked a positive earnings surprise of 3.32%, and the wine, liquor and beer company has now surpassed consensus EPS estimates in each of the last four quarters. Revenue for the quarter ended August 2026 came in at $2.63 billion, surpassing the Zacks Consensus Estimate by 2.46% and up from $2.48 billion a year ago, with the company also topping consensus revenue estimates four times over the last four quarters. Ahead of the release, the estimate revisions trend was mixed, translating into a Zacks Rank #3 (Hold) for the stock, which has lost about 17.9% since the beginning of the year against a 13.6% gain for the S&P 500. The current consensus EPS estimate stands at $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, while industry peer Molson Coors Brewing is expected to post quarterly earnings of $1.50 per share on revenues of $2.95 billion for the quarter ended September 2026.
Constellation Brands Acquires SpikedAde in Deal Worth Up to $353 Million
Constellation Brands announced on October 6, 2026 that it has acquired SpikedAde, a spirit-based ready-to-drink brand competing in the emerging sports drink-inspired "Ade" segment. The transaction includes a $75 million payment at close for 100% ownership of the business, plus additional contingent consideration of up to $278 million payable over five years based on the future performance of the SpikedAde business. Constellation said the deal strengthens its position in the fast-growing RTD category, where dollar sales rose 25% in the last year, and expands its portfolio into an emerging, consumer-led demand space. SpikedAde combines familiar sports drink flavors with a vodka base in a zero-sugar, 100-calorie, non-carbonated format, and as a first mover in the space has built an established presence across the eastern U.S. The SpikedAde team will be integrated into Constellation's Beer Division, with Constellation assuming production oversight, marketing, and distribution and intending to align SpikedAde distribution with Gold Network Distributor partners. Constellation President and CEO Nicholas Fink said the company will leverage its capabilities to accelerate growth and expand the brand's reach, while SpikedAde Founder and CEO Jason Cohen said Constellation's scale and expertise will help the brand reach more consumers.
STZ · Capital · Positive Constellation Brands acquires SpikedAde for $75M at close plus up to $278M contingent, an M&A deal expanding its RTD portfolio.
Constellation Brands Reports Second Quarter Fiscal 2027 Results
Constellation Brands, Inc. reported its second quarter fiscal 2027 financial results. The Rochester, New York-based total beverage alcohol company, which trades on the New York Stock Exchange under the ticker STZ, released the results on October 6, 2026. President and Chief Executive Officer Nicholas Fink and Chief Financial Officer Garth Hankinson will host a conference call to discuss the financial results and outlook on Wednesday, October 7, 2026, at 8:00 a.m. ET. A live, listen-only webcast of the call will be available, and a PDF containing the second quarter fiscal 2027 financial results and full financial tables has been posted. Constellation Brands produces and markets beer, wine, and spirits with operations in the U.S., Mexico, New Zealand, and Italy.
DeepSeek to Raise at Least $12 Billion in Tencent and CATL-Led Round
Chinese artificial intelligence group DeepSeek is set to raise at least 80 billion yuan, or $12 billion, in a funding round backed by Tencent and CATL, according to Bloomberg News. The company had initially sought 50 billion yuan, but investor demand far exceeded expectations, and the final tally could rise as high as 100 billion yuan. DeepSeek, which shot to fame with its R1 open-source AI model in 2025, is regarded as one of China's most advanced AI labs, and earlier reports placed its valuation at about $74 billion. Investors are also closely watching the startup's plans to seek a public listing. In other market news, Gulf oil exporters surpassed pre-war export levels for roughly half of September, with the seven-day moving average for crude exports from the region at 18.3 million barrels per day on September 30, and Constellation Brands is due to report quarterly results after the closing bell, with comparable operating profit tipped at $872.3 million on comparable net sales of $2.53 billion.
PepsiCo, Levi Strauss and Constellation Brands Set to Report This Week
PepsiCo, Levi Strauss and Constellation Brands are all scheduled to report quarterly results this week, offering fresh reads on consumer demand. PepsiCo will release its Q3 results on Thursday, October 8th, before the market opens, after its latest quarter saw net revenue climb 6.4% YoY to $24.2 billion and organic revenue grow 2.4%, with full-year guidance reaffirmed. Levi Strauss reports Wednesday, October 7th, entering with 8% reported revenue growth and 6% organic growth in its latest quarter, adjusted EPS up 27% YoY to $0.28, and a raised full-year revenue and EPS outlook. Constellation Brands reports Tuesday, October 6th, after the market close with its fiscal Q2 results, following a quarter in which reported sales fell 3% YoY to $2.4 billion on prior wine divestitures while its Beer segment delivered 2% sales growth, and management maintained its fiscal 2027 comparable EPS outlook of $11.20-$11.90 per share. Volume trends, brand momentum and management commentary are expected to be the main focus across all three releases.
LEVI · Capital · Neutral Levi Strauss is set to report quarterly results Wednesday, with prior-quarter revenue growth and raised outlook as context; no new development stated.
PEP · Capital · Neutral PepsiCo is scheduled to report Q3 results Thursday, after prior-quarter revenue growth and reaffirmed guidance; no new development stated.
STZ · Capital · Neutral Constellation Brands reports fiscal Q2 Tuesday, following prior-quarter sales decline on wine divestitures and maintained EPS outlook; no new development stated.
Jim Cramer Flags Beer Slowdown Ahead of Constellation Brands Earnings
Jim Cramer said on the October 2 episode of Mad Money that Constellation Brands faces a genuine contraction in certain liquors and a steep slowdown in beer sales ahead of its scheduled October 6 earnings release. The company is set to report fiscal second-quarter 2027 results after the market closes on October 6, with its earnings call on October 7; its latest published quarterly results remain those for the period ended May 31. In its fiscal first-quarter 2027, beer sales rose 2% to approximately $2.28 billion and beer operating income also rose 2%, with Pacifico depletions up approximately 21%, Victoria up 14% and Modelo Chelada up 6%, while the remaining wine and spirits portfolio recorded 8% organic net sales growth and its reported sales decline of 47% reflected divestitures. Weakness persisted in the largest beer brands, as total beer depletions fell 0.3%, including an approximately 2% decline for Modelo Especial and a decline exceeding 5% for Corona Extra, while beer shipments increased 1.8%. The stock is down 19% for the year and trades at a forward earnings multiple of approximately 9.6x, compared with 7.8x for Molson Coors, and Insider Monkey's Q2 data tracking over 1000 hedge funds showed 59 hedge funds holding the stock versus 56 in the preceding quarter, with Harris Associates the top shareholder at nearly 3.1 million shares and short interest at 5.69% of the public float.
Earnings Season Kicks Off With Constellation Brands, PepsiCo, Delta in Focus
Third quarter earnings season begins this week with results due from Constellation Brands, Levi's, PepsiCo and Delta, and Wall Street analysts are heading in with record optimism. According to new data from FactSet, 60% of S&P 500 stocks now carry a buy rating from Wall Street analysts, the highest level on record, leaving next to no margin for error if results or guidance come up short. The optimism is rooted in the earnings outlook: the S&P 500 is expected to report year-over-year earnings growth of 29.5% for the recently completed third quarter, while analysts are calling for growth of 27.6% in the fourth quarter and 32.4% for 2026. Yahoo Finance Executive Editor Brian Sozzi said he is most concerned about Constellation Brands and PepsiCo given pressured consumer wallets, and flagged Delta's outlook as at risk from soaring fuel prices even though sales trends likely stayed strong.
Earnings week ahead: PepsiCo, Delta, Constellation Brands, Levi Strauss and Tilray to report
A diverse earnings slate spanning consumer staples, beverages, travel, apparel and AI infrastructure is set for the week of October 5 to October 9, with PepsiCo, Constellation Brands, Lamb Weston, Levi Strauss and Tilray Brands offering reads on food, beverage and apparel spending while Delta Air Lines provides a key read on travel demand. Constellation Brands, the U.S. importer and marketer of Corona, Modelo Especial and Pacifico, reports fiscal Q2 FY2027 after Tuesday's close, with consensus EPS of $3.55 and revenue of $2.54B, as the stock sits near a 52-week low of $113.34. Levi Strauss reports fiscal Q3 2026 after Wednesday's close, with consensus EPS of $0.36 and revenue of $1.62B, after management guided to revenue growth of 4%-5% and adjusted EPS of $0.34-$0.36. PepsiCo reports Q3 2026 before Thursday's open, with consensus EPS of $2.30 and revenue of $24.97B, as the company plans to raise prices on select brands including Doritos and Ruffles by low-to-mid-single-digit percentages later this year or early next year, reversing price cuts of as much as 15% introduced earlier in 2026. Delta Air Lines reports Q3 2026 before Friday's open, with consensus EPS of $1.88 and revenue of $18.99B, as a dispute over its in-flight Wi-Fi strategy continues after Delta chose Amazon's LEO satellite network over SpaceX's Starlink for a rollout planned for 2028. Also reporting during the week are Saratoga Investment, Lamb Weston, RPM International, Apogee Enterprises, Tilray Brands, NOVAGOLD Resources, Helen of Troy, AngioDynamics, Richardson Electronics, Resources Connection, Penguin Solutions, Applied Digital and New Horizon Aircraft.
PEP · Pricing · Positive PepsiCo plans to raise prices on select brands like Doritos and Ruffles by low-to-mid-single digits, reversing earlier price cuts, a favorable pricing move ahead of its Q3 report.
DAL · · Neutral Delta is set to report Q3 earnings; article only previews consensus figures and notes an ongoing in-flight Wi-Fi dispute, no clear directional driver.
LEVI · · Neutral Levi Strauss is set to report Q3 earnings; article only previews consensus EPS/revenue and prior guidance, no new directional development.
STZ · · Neutral Constellation Brands is set to report fiscal Q2 earnings; article only previews consensus EPS/revenue and notes the stock near a 52-week low, no clear directional driver.
Constellation Brands Set for Q2 Fiscal 2027 Report With $3.62 EPS Estimate
Constellation Brands is scheduled to release second-quarter fiscal 2027 results on Oct. 6, 2026, with the Zacks Consensus Estimate pegging earnings at $3.62 per share, a 0.3% decline from the year-ago quarter's actual, and revenues at $2.57 billion, up 3.6% year over year. The consensus earnings mark has moved down by a penny in the past seven days, and the company currently carries an Earnings ESP of -1.86% and a Zacks Rank #4 (Sell), a combination the Zacks model says does not conclusively predict an earnings beat. Constellation Brands delivered an earnings surprise of 6.5% in the last reported quarter and its bottom line beat estimates by 9.6%, on average, over the trailing four quarters. Results are expected to reflect continued strength in the beer business on premiumization and capacity expansion in Mexico, while the wine and spirits business transitions toward higher-end brands such as The Prisoner Brand Family, Kim Crawford and Meiomi, after sales plunged 47% in the fiscal first quarter. Tariffs, product mix, marketing timing, Veracruz start-up costs, and high packaging and raw material costs from inflationary pressures are expected to have weighed on operating income in both the beer and wine and spirits businesses. STZ trades at a forward 12-month price-to-earnings ratio of 9.39X, below its five-year high of 18.33X and the Beverages - Alcohol industry average of 13.91X, while its shares have lost 17.8% in the past three months compared with the industry's 6.7% decline.
Constellation Brands Redeems US$600,000,000 4.350% Senior Notes Due 2027
Constellation Brands has redeemed in full its US$600,000,000 4.350% Senior Notes due 2027, with the cash redemption price calculated under the supplemental indenture terms and communicated to noteholders via the trustee. The early retirement of the fixed-rate debt modestly reinforces the balance sheet story but does not materially change near-term demand risk in the beer business, especially around Hispanic consumer spending. The redemption sits alongside Constellation's ongoing capital return program, including the affirmed US$1.0300 quarterly dividend announced in June 2026 and ongoing buybacks. The company's narrative projects $9.5 billion in revenue and $2.1 billion in earnings by 2029, requiring 1.7% yearly revenue growth and about a $0.3 billion earnings increase from $1.8 billion today, while the most bullish analysts once expected about US$9.9 billion in revenue and US$2.2 billion in earnings. Tariffs, aluminum cost pressures, and softer beer volume growth remain the key risks to that outlook.
Trump to scrap 10% tariff on Irish whiskey, lifting US distillers
President Trump announced he will reverse the 10% tax on imported Irish whiskey, sending shares of American distillers higher on Monday. Speaking at the close of the Irish Open golf tournament and ahead of the holiday season, Trump said, "On behalf of the United States of America, I am going to take the tariffs off," though he did not discuss the timing of the action. The tariff had been lowered from 15% to 10% in July, after the president in April lifted the tariff on certain UK whiskeys, including those produced in Scotland and Northern Ireland, leaving the Republic of Ireland with a 10% export tariff on whiskey shipped to the U.S. According to the Irish Whiskey Association, the U.S. represents roughly 30% of Irish whiskey exports. Shares of Brown-Forman, Constellation Brands and MGP Ingredients trended higher at Monday's open, though they surrendered some of the opening gains, as opening U.S. trade to imports from the Republic of Ireland gives U.S. distillers reciprocal export access to Ireland.
Constellation Brands Refines Beer Strategy, Reaffirms Full-Year Outlook
Constellation Brands said it is refining its beer strategy around consumer occasions and brand-specific playbooks while reaffirming the full-year guidance it issued in April. Speaking at an investor conference in Boston, Chief Executive Officer Nick Fink said mature brands such as Corona need a more granular approach centered on relevance and targeted activation, while Modelo, Pacifico and Victoria still have room to grow through distribution. Fink said Constellation was the number-one share gainer during the World Cup by nearly one share point, with strong on-premise performance, but he called off-premise results and August Circana data lackluster amid higher gas and diesel prices and broader macroeconomic and geopolitical pressures. Chief Financial Officer Garth Hankinson said the company has generated more than $600 million in supply-chain savings after spending nearly $1 billion annually over the past decade on brewery capacity, and he expects second-half operating margins to be lower than the first half on seasonal, inflationary and increased marketing pressures. Constellation's wine and spirits segment grew 8% in the prior quarter and is expected to produce margins in the 5% to 6% range this year, while capital allocation will continue to emphasize investment, a dividend with a 30% payout and share repurchases under a $4 billion authorization.
Constellation Brands has announced the full early redemption of its outstanding 4.350% Senior Notes due 2027, with the redemption scheduled for September 18, 2026, ahead of the notes' maturity. As of September 8, 2026, $600 million in aggregate principal amount of the notes remained outstanding.
STZ · Capital · Neutral Early redemption of notes is a financial event, but impact on equity is neutral to slightly negative due to reduced leverage, offset by interest savings.
Constellation Brands Warns Logistics and Commodity Costs to Compress H2 Margins
Constellation Brands warned that higher transportation and commodity costs will weigh on gross profit margins in the second half of the year, sending shares down more than 4% and marking the ninth decline in ten sessions. The margin pressure stems from logistics inflation and volatile commodity hedges, but management remains confident in its long-term outlook, citing underlying pricing power and early signs of normalized consumption. At the Barclays Annual Global Consumer Conference in Boston, CEO Nicholas Fink said the parent of Modelo and Corona is shifting from expansion to operational efficiency and cost optimization, measures expected to boost profits despite sluggish sales. The company reiterated its fiscal 2027 targets of reported EPS between $11.50 and $12.20 and comparable EPS between $11.20 and $11.90, with enterprise organic net sales seen down 1% to up 1%.
Three Stocks Could Win If US-Canada Tariff Pause Becomes a Deal
President Trump announced a three-day pause on new 50% U.S. tariffs on roughly $20 billion of Canadian goods, saying a deal had been reached subject to finalization of documents. Magna International, Constellation Brands, and Canadian Pacific Kansas City are seen as the most direct beneficiaries if the pause hardens into a durable agreement. Magna, which posted Q2 FY26 sales of $11 billion and adjusted EPS of $1.86, would gain from lower auto tariffs cutting cross-border input costs. Constellation Brands, trading at $133.52 versus a $170.83 consensus target, would benefit from restored shelf access for U.S. alcohol producers. Canadian Pacific Kansas City, with Q2 FY26 revenue growth of 13% and an analyst target of $101.73, would see rail volumes recover as tariffs ease. If the paperwork stalls, the full 50% tariffs snap back, rerating all three stocks on the same negative headline.
Berkshire Hathaway boosted stake in Alphabet, homebuilders in the second quarter
Berkshire Hathaway increased its stake in Alphabet and added to homebuilder holdings in the second quarter. The conglomerate picked up roughly 48.1 million Alphabet shares, bringing its total to about 106 million shares valued at $37.76 billion as of June 30. Berkshire also grew its Lennar stake by nearly 30% and established a small new position in D.R. Horton worth $580,504. The company reduced stakes in Bank of America, Ally Financial, and Capital One Financial, and exited its Constellation Brands position.
Beverages, Alcohol, and Tobacco Stocks Post Mixed Q2 as Altria, Celsius, and Vita Coco Diverge
The beverages, alcohol, and tobacco sector reported a mixed second quarter, with aggregate revenues beating analyst consensus by 1% while next-quarter revenue guidance came in 2.2% above expectations. Altria posted revenue of $5.36 billion, up 1.2% year-on-year and in line with estimates, but its stock fell 8.9% since the report. Vita Coco delivered the best performance of the group, with revenue of $216.2 million, a 28.1% increase that exceeded expectations by 3%, and it raised full-year guidance, though shares still dropped 16.4%. Celsius was the weakest, missing revenue estimates by 6.2% with $817.9 million, a 10.6% rise, and its stock declined 5.8%. Constellation Brands beat revenue expectations by 1.6% with $2.43 billion, down 3.3% year-on-year, but issued the weakest full-year guidance update among peers, and its shares slipped 2.4%. PepsiCo surpassed revenue estimates by 0.8% with $24.18 billion, up 6.4%, yet its stock fell 2.3%.
Discount retailers lift consumer staples in July as alcohol, tobacco lag
The Consumer Staples Select Sector SPDR Fund rose 2.6% in July, as gains in discount retailers offset declines in alcoholic beverage and tobacco stocks. Target and Dollar General each rose about 10%, while Coca-Cola gained 7%, Molson Coors added 6.7%, and Philip Morris advanced 5.7%. Constellation Brands fell 6.3% to become the sector's worst performer, followed by Altria down 5.6%, Keurig Dr Pepper down 4%, and Procter & Gamble and Walmart each down 2%. Analyst Justin Purohit said Target's rally was driven by company-specific execution, while Dollar General's strength reflected consumers trading down amid inflation pressures, and he flagged discount retailers including Dollar Tree, TJX Companies, Ross Stores, and Burlington Stores as best positioned if inflation remains sticky.
Constellation Brands shares down 3.8% since last earnings report
Constellation Brands shares have fallen 3.8% since its last earnings report about a month ago, underperforming the S&P 500. The company reported first-quarter fiscal 2027 results that beat the Zacks Consensus Estimate on both top and bottom lines, with comparable earnings per share of $3.43 rising 7% year over year and net sales declining 3% to $2.433 billion. Beer segment sales grew nearly 2% to $2.28 billion, while wine and spirits sales plunged 47% to $149.2 million due to the 2025 Wine Divestitures. The company updated its fiscal 2027 reported EPS outlook to $11.50 to $12.20 and expects comparable EPS of $11.20 to $11.90. Analysts have since revised estimates downward, and the stock currently carries a Zacks Rank #3, or Hold.
Premiumization and Brand Strength Drive Constellation Brands' Growth
Constellation Brands is leveraging premiumization and a strong brand portfolio to drive growth in the beer, wine and spirits market. The company's strategy centers on high-margin, fast-growing segments, with flagship beer brands Modelo Especial, Corona and Pacifico serving as key growth engines in the U.S. market. Constellation Brands continues to invest in product innovation and brand-building initiatives to capitalize on evolving consumer preferences and sustain long-term profitability. Shares of Constellation Brands have lost 4% in the past six months, underperforming the industry's 11.3% gain, and the stock currently carries a Zacks Rank #3, or Hold. The Zacks Consensus Estimate for fiscal 2027 earnings per share remains breakeven, while fiscal 2028 is expected to grow 3.4% year over year.
Jim Cramer recommends buying 5 stocks after rotation sell-off
Jim Cramer says a weak June jobs report triggered a rotation that pushed down shares of Johnson & Johnson, PepsiCo, Starbucks, Constellation Brands, and TJX Companies, creating a buying opportunity. On CNBC's Mad Money, he called the five stocks collateral damage from indiscriminate selling by large funds moving into AI winners. Johnson & Johnson and PepsiCo report earnings on July 15 and July 9, respectively, which Cramer sees as near-term tests. Starbucks is an accumulation play during its turnaround, Constellation's beer business is stabilizing, and TJX benefits as consumers trade down. Cramer stressed that the sell-off was driven by sector rotation, not company fundamentals.
Constellation Brands Trades at Deep Discount as Beer Strength Meets Wine Drag
Constellation Brands shares trade at 10.97 times forward earnings, a steep discount to the S&P 500's 21.2 times and the stock's own five-year median of 18.6 times, reflecting both value appeal and operational warning signs. The stock has fallen 23.4% over the past 12 months, pushing it near the low end of its five-year valuation range. Beer remains the core support, generating about 93.8% of consolidated net sales in the first quarter of fiscal 2027, with net sales rising 2% to $2.28 billion. However, the Wine and Spirits segment posted a comparable operating loss of $1.1 million, and management's full-year organic net sales growth outlook ranges from a 1% decline to a 1% gain for both Beer and Wine and Spirits. The company carries a Zacks Rank of 4, equivalent to a Sell, alongside a Value Score of B and a Growth Score of C.
Brazil and Mexico World Cup exits to weigh on beer demand, says Morgan Stanley
The World Cup eliminations of Brazil and Mexico could dampen beer demand for Anheuser-Busch InBev, Constellation Brands, and Heineken, according to Morgan Stanley. The firm estimates that deep tournament runs historically boost beer volumes by 80 basis points in the quarter finals, 150 basis points in the semi-finals, and 215 basis points in the final. Brazil's early knockout is seen as a material negative surprise given the size of its beer market and high expectations for a deep run, adversely impacting third-quarter sales for the three brewers, with Heineken affected to a lesser extent. Attention now turns to the U.S. team's match against Belgium, which could provide an upside surprise for Anheuser-Busch if the host nation advances further.
BUD · Demand · Negative Brazil's early World Cup exit is expected to dampen beer demand, adversely impacting Anheuser-Busch InBev's third-quarter sales.
STZ · Demand · Negative Brazil's early World Cup exit is expected to dampen beer demand, adversely impacting Constellation Brands' third-quarter sales.
HEIA.AS · Demand · Negative Brazil's early World Cup exit is expected to dampen beer demand, adversely impacting Heineken's third-quarter sales, though to a lesser extent.
HEIO.AS · Demand · Negative Brazil's early World Cup exit is expected to dampen beer demand, adversely impacting Heineken Holding's third-quarter sales, though to a lesser extent.
Constellation Brands reported strong fixed cost leverage and robust gross margins in its beer segment during its first quarter 2027 earnings call, while navigating a volatile consumer environment. CEO Nicholas Fink noted that the quarter saw strong March sales followed by a slowdown due to rising gas prices, with a modest reacceleration in June as pressures eased and the World Cup provided a boost in on-premise settings. The company is seeing strong double-digit growth in its Corona non-alcoholic brand and is exploring further white space opportunities to expand participation across more consumer occasions. CFO Garth Hankinson highlighted that beer margins reached 39% driven by fixed overabsorption, cost savings, and favorable pricing net of mix, though increased marketing spend around major events is expected to impact operating margins in upcoming quarters. The company also acknowledged challenges with Modelo Especial and Corona Extra, with plans to refine its playbook to maintain and grow these scaled brands.
Beverages, Alcohol, and Tobacco Stocks Post Strong Q1 Revenue Beats
The 13 beverages, alcohol, and tobacco stocks tracked reported a strong Q1, with revenues beating analysts' consensus estimates by 4.9% on average, though next quarter's revenue guidance came in 3% below. Celsius led the group with revenue growth of 138% year on year to $782.6 million, exceeding expectations by 2.6%, but its stock fell 10.7% as investor hopes ran higher. Vita Coco delivered the biggest analyst estimate beat, with revenue up 37.3% to $179.8 million, topping forecasts by 20.5%, and its stock surged 28.3%. Boston Beer was the weakest performer, with revenue down 4.4% to $433.9 million and a significant miss on adjusted operating income and EPS, sending its stock down 22%. Constellation Brands reported revenue of $2.43 billion, down 3.3% but beating estimates by 1.6%, while PepsiCo posted revenue of $19.44 billion, up 8.5% and surpassing expectations by 2.9%.
CELH · Capital · Negative Revenue beat expectations but stock fell 10.7% as investor hopes ran higher, indicating a negative market reaction to earnings.
COCO · Capital · Positive Revenue beat expectations by 20.5% and stock surged 28.3%.
SAM · Capital · Negative Revenue declined 4.4% and missed on adjusted operating income and EPS, stock down 22%.
PEP · Capital · Positive Revenue grew 8.5% and surpassed expectations by 2.9%.
STZ · Capital · Positive Revenue beat estimates by 1.6% despite a 3.3% decline.
Nike, ServiceNow, Constellation Brands among stocks making biggest premarket moves
Nike fell more than 3% premarket after reporting a 12% sales decline in Greater China, despite beating earnings and revenue estimates for its fiscal fourth quarter. Constellation Brands rose about 1.5% after posting first-quarter earnings of $3.43 per share, above the $3.20 consensus, with revenue also topping expectations and full-year guidance roughly in line. Shutterstock plunged more than 30% and Getty Images dropped 4% after Getty called off their proposed merger due to demands from a U.K. regulator. Alcoa declined 4% after announcing a $4.1 billion deal to acquire South32's bauxite, alumina and aluminum portfolio. ServiceNow gained more than 5% and Salesforce nearly 4% after Guggenheim upgraded both to buy, citing attractive valuations and dismissing AI as a threat. Bloom Energy jumped over 7.5% on an expanded partnership with Brookfield to finance power for AI infrastructure projects. Kroger slipped 2% after agreeing to acquire Giant Eagle for $1.65 billion. Sandisk tumbled 3.5% and Micron Technology fell about 2.5% on the first trading day of the third quarter, following more than tripling in the prior quarter.
Constellation Brands beats Q1 forecasts on strong beer sales
Constellation Brands reported first-quarter adjusted earnings of $3.43 per share, beating the consensus estimate of $3.25, while revenue of $2.43 billion edged past expectations of $2.41 billion. The beer segment drove results with net sales up 2% to $2.28 billion and operating income also rising 2% to $891.4 million, though total company sales declined 3% year-over-year. Within the beer portfolio, Modelo Especial depletion volumes fell about 2% and Corona Extra dropped more than 5%, while Pacifico, Victoria, and Modelo Chelada grew 21%, 14%, and 6% respectively. The company reaffirmed its full-year adjusted earnings guidance of $11.20 to $11.90 per share, with the midpoint of $11.55 remaining below the analyst consensus of $11.74. Shares rose 2.4% in premarket trading following the results.
Constellation Brands Earnings Miss, but World Cup Lifts On-Premise Beer Sales
Constellation Brands reported fiscal first-quarter net sales of $2.43 billion, down from $2.52 billion a year earlier but above analyst expectations of $2.39 billion, while profit rose to $653.8 million from $516.1 million. The company, which imports Modelo and Corona beers, saw its Mexican beer portfolio drive most revenue, with demand from Hispanic customers beginning to rebound. Meanwhile, on-premise beer sales nationally rose 5.5% for the week ending June 20, which included the first 21 US-hosted World Cup matches, and climbed 15.4% in World Cup host markets, according to Beer Institute data shared with The Daily Upside. Constellation executives noted that a surge in gas prices may have pressured lower-income consumers, contributing to a deceleration in retail food and beverage volume trends as the quarter progressed.
Constellation Brands reported second-quarter fiscal 2026 revenue of $2.43 billion, beating Wall Street estimates of $2.39 billion despite a 3.3% year-on-year decline. Adjusted earnings per share came in at $3.43, topping the consensus of $3.26. However, the company's full-year revenue guidance of $9 billion at the midpoint fell 1.1% short of analyst expectations, and its full-year adjusted EPS outlook of $11.55 was also below estimates. Organic revenue rose 3% year on year, exceeding projections, while operating margin improved to 34.7% from 28.4% a year earlier.
Constellation Brands Reports First Quarter Fiscal 2027 Financial Results
Constellation Brands reported its first quarter fiscal 2027 financial results. A conference call to discuss the results and outlook will be hosted by President and CEO Nicholas Fink and CFO Garth Hankinson on Wednesday, July 1, 2026 at 8:00 a.m. Eastern Time. Details for joining the call or accessing the live webcast are available on the company's investor relations website.
Nike, Constellation Brands, Progress Software to Report Earnings After Hours on June 30
Nike, Constellation Brands, and Progress Software are scheduled to report quarterly earnings after the market closes on June 30, 2026. Nike's consensus earnings per share forecast from 11 analysts is 11 cents, a 21.43% decrease from the same quarter last year, though the company has beaten expectations in every quarter over the past year. Constellation Brands' consensus from 6 analysts is $3.22 per share, unchanged from a year ago, after missing estimates in the second calendar quarter of 2025 by 3.59%. Progress Software's consensus from 3 analysts is $1.15 per share, a 3.60% increase from the prior year, and it has also beaten expectations in each of the past four quarters.
NKE · Capital · Neutral Earnings report scheduled; consensus EPS down 21.43% YoY but company has beaten expectations in every quarter over the past year.
PRGS · Capital · Neutral Earnings report scheduled; consensus EPS up 3.60% YoY and company has beaten expectations in each of the past four quarters.
STZ · Capital · Neutral Earnings report scheduled; consensus EPS unchanged YoY but company missed estimates in Q2 2025 by 3.59%.
Stock Index Futures Gain at Quarter-End Ahead of JOLTS Data and Nike Earnings
U.S. stock index futures edged higher on Tuesday, putting major indexes on track for their strongest quarterly gains in years, as investors awaited the JOLTS job openings report and earnings from Nike. September S&P 500 E-Mini futures rose 0.10% and Nasdaq 100 E-Mini futures added 0.16%. Economists forecast May JOLTS job openings at 7.280 million, down from 7.618 million in April. The Conference Board's consumer confidence index for June is expected at 94.4, up from 93.1. Nike and Constellation Brands are set to report quarterly results. In pre-market trading, AeroVironment surged over 23% on strong results, while Concentrix tumbled more than 24% after cutting guidance. European markets hit a record high, with the Euro Stoxx 50 up 1.04%, as French and Italian inflation slowed more than expected. Asian stocks also closed higher, with Japan's Nikkei 225 up 0.86%, capping its strongest quarter since 1965.
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