Constellation Brands, Inc. (NYSE:STZ) shares are trading lower Tuesday after the company cut its fiscal year 2026 outlook, citing macroeconomic headwinds affecting consumer demand.
What To Know: The company lowered its comparable earnings per share outlook to $11.30 to $11.60, down from prior guidance of $12.60 to $12.90.
Constellation now expects enterprise organic net sales to decline 4% to 6%, compared with earlier guidance for a decline of 2% to a gain of 1%. Enterprise operating income growth is projected at 666% to 686%, versus prior guidance of 742% to 760%.
Beer net sales are forecast to fall 2% to 4%, with beer operating income down 7% to 9%. Previous guidance called for flat to 3% growth in beer net sales.
Free cash flow is now expected at $1.3 billion to $1.4 billion, compared with the prior range of $1.5 billion to $1.6 billion.
“We continue to navigate a challenging macroeconomic environment that has dampened consumer demand and led to more volatile consumer purchasing behavior since our first quarter of fiscal 2026,” said Constellation Brands President and CEO Bill Newlands.
STZ Price Action: At the time of writing, Constellation stock is trading 6.99% lower at $150.61, according to data from Benzinga Pro.
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