Constellation Brands reported second-quarter earnings of $3.74 per share on revenues of $2.63 billion, beating the Zacks Consensus Estimate of $3.62 per share and $2.57 billion in revenue, and reaffirmed fiscal 2027 comparable earnings guidance of $11.20-$11.90 per share. On the earnings call, President and CEO Nicholas Fink said September's improving beer demand trends, helped by college football programming and stronger consumer engagement, could push results toward the high end of that range, while CFO Garth Hankinson said second-quarter performance exceeded internal expectations even after accounting for distributor inventory rebuilding. Beer shipments rose 5.5% while depletions fell 0.6% in the quarter, and management said distributor inventories have recovered but remain below historical averages, with full-year shipments and depletions expected to track within 99% of each other. Pacifico grew approximately 20% year to date and entered the 10 largest U.S. beer brands, Victoria posted first-half growth in the mid-teens, and Modelo Especial and Corona Extra saw depletion declines of approximately 2% and 5%, respectively. Beer operating margin fell 160 basis points to 39%, and Hankinson projected second-half beer operating margins of 34.5%-35.5%, with the Veracruz brewery set to enter service early in fiscal 2028, bringing roughly $75 million in annualized depreciation and a 90-basis-point margin headwind. The company has repurchased $530 million in shares year to date, with approximately $2.5 billion remaining under an authorization extending through fiscal 2028, and its SpikedAde acquisition involved $75 million upfront plus potential contingent payments totaling $278 million.
Constellation Brands Inc Class AQ2 EPS of $3.74 and revenue of $2.63B beat consensus, with fiscal 2027 guidance reaffirmed at $11.20-$11.90.
Victoria PLC
