Constellation Brands, Inc. (STZ) Q1 2027 Earnings Call Transcript
While the top- and bottom-line numbers for Constellation Brands (STZ) give a sense of how the business performed in the quarter ended May 2026, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.
Constellation Brands (STZ) came out with quarterly earnings of $3.43 per share, beating the Zacks Consensus Estimate of $3.22 per share. This compares to earnings of $3.22 per share a year ago.
Food and beverage volume trends were lower as the quarter progressed, Chief Executive Nicholas Fink said, reflecting the effects of higher gas prices from the war in Iran on top of years of inflation.
Constellation Brands is scheduled to report earnings after the closing bell Tuesday, with traders anticipating a sizable move from the wine and beer maker's stock.
STZ heads into Q1'27 results, with earnings growth expected, beer momentum in focus and cost pressures posing risks.
Get a deeper insight into the potential performance of Constellation Brands (STZ) for the quarter ended May 2026 by going beyond Wall Street's top-and-bottom-line estimates and examining the estimates for some of its key metrics.
Constellation Brands (STZ) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Constellation Brands is upgraded to a cautious Buy ahead of Q1 earnings, anticipating positive management commentary. The upcoming FIFA World Cup could create a meaningful demand tailwind, particularly because most matches occur in key North American markets served by Constellation. Management plans aggressive brand investment around the tournament, potentially boosting sales volumes and improving visibility into near-term business momentum during fiscal 2027.
Constellation Brands Inc (NYSE:STZ) reports fiscal first-quarter results after the close on June 30, and the setup is bumpy. UBS is modeling EPS of $3.12, below the Street consensus of $3.24, after cutting estimates to reflect weaker beer demand.
Constellation Brands faces headwinds from inflation, market saturation, and shifting consumer drinking habits impacting growth and technical sentiment. Despite sector challenges, STZ's valuation and core strengths provide resilience against market headwinds, warranting careful consideration before selling. Risk factors include inflation and declining alcohol consumption, but beer remains a preferred choice, supporting STZ's product mix.
Constellation Brands remains a Buy, supported by solid cash flow, strong brands, and a valuation that offers a margin of safety amid macro headwinds. FY26 free cash flow reached $1.79B, with FY27 guidance implying $1.6–$1.7B FCF and comparable EPS of $11.20–$11.90, reflecting ongoing consumer pressure. STZ's premium portfolio and disciplined capital allocation, including a 2.93% dividend yield and robust buybacks, should help deliver solid returns in an eventual consumer recovery.