Constellation Brands Inc reported second quarter results that exceeded analyst expectations, but shares fell 2.7% as the company's full-year earnings guidance came in below Wall Street estimates. The beer and spirits maker posted adjusted earnings per share of $3.74 for the second quarter, beating the analyst consensus of $3.61, while revenue reached $2.63 billion, up 6% YoY and ahead of the $2.54 billion estimate. However, the company maintained its fiscal 2027 adjusted EPS outlook of $11.20-$11.90, with a midpoint of $11.55 that falls short of the $11.72 analyst consensus. The Beer Business drove results with net sales growth of 5% to $2.47 billion, supported by a 5.5% increase in shipment volumes, and operating income for the beer segment rose 1% to $964.2 million, though operating margin decreased 160 basis points to 39.0% due to increased marketing investment. The Wine and Spirits Business delivered net sales growth of 17% to $159.4 million and depletions growth of 10.2%, and for fiscal 2027 Constellation expects organic net sales growth of negative 1% to positive 1% and operating cash flow of $2.4-$2.5 billion.
Constellation Brands Inc Class AQ2 EPS/revenue beat estimates but FY27 guidance midpoint of $11.55 misses the $11.72 consensus, sending shares down 2.7%.
