Constellation Brands (STZ) trimmed its sales outlook and announced plans to sell some of its lower-cost wine brands.
Constellation Brands is one of the world's largest companies in the alcoholic beverage industry, with brands like Corona or Modelo. Alcohol producers have seen their shares hit hard in recent months, with drawdowns not seen since the 2008 crisis. Constellation is no exception. Lower consumption of wine and spirits due to macro circumstances, Trump's tariffs, and lower alcohol consumption by younger generations pose a risk in both short and long-term.
Corona and Modelo owner Constellation Brands Inc (NYSE:STZ) reported better-than-expected financial results for the fourth quarter but warned of tariff challenges ahead. The company posted earnings per share of $2.63, beating estimates of $2.27.
Constellation Brands (STZ) shares slid in premarket trading Thursday, a day after the alcoholic drinks maker posted a soft outlook for the full year. The company, which imports Corona and Modelo beers from Mexico, also announced plans to sell some of its lower-cost wine brands.
Constellation Brands (STZ) shares slid in premarket trading Thursday, a day after the alcoholic drinks maker posted a soft outlook for the full year. The company, which imports Corona and Modelo beers from Mexico, also announced plans to sell some of its lower-cost wine brands.
Constellation Brands (STZ 7.39%), the international beverage company known for its popular beer brands, recently released its earnings report for the fourth quarter of 2025 on April 9, 2025.
Although the revenue and EPS for Constellation Brands (STZ) give a sense of how its business performed in the quarter ended February 2025, it might be worth considering how some key metrics compare with Wall Street estimates and the year-ago numbers.
Constellation Brands (STZ) came out with quarterly earnings of $2.63 per share, beating the Zacks Consensus Estimate of $2.28 per share. This compares to earnings of $2.26 per share a year ago.
Constellation Brands gave a weaker-than-expected forecast for the fiscal year, anticipating that higher U.S. tariffs will hurt its business. The Trump administration has imposed a 25% tariff on all imported canned beer.
Constellation Brands stock is undervalued due to tariff concerns, but its strong fundamentals and market dominance make it a compelling buy opportunity. Tariffs on Mexican imports have hurt STZ, but I believe they are temporary and will be lifted, boosting the stock price. Despite tariffs, STZ's revenue and profitability have grown steadily, supported by share buybacks and a solid dividend yield of 2.23%.
Evaluate the expected performance of Constellation Brands (STZ) for the quarter ended February 2025, looking beyond the conventional Wall Street top-and-bottom-line estimates and examining some of its key metrics for better insight.
STZ's Q4 results are expected to reflect headwinds in wine & spirits, and inflationary pressures. Meanwhile, its beer segment stays strong, driving growth.