Constellation Brands, Inc. (STZ), headquartered in Victor, New York, produces, imports, markets, and sells beer, wine, and spirits. With a market cap of $33.4 billion, the company provides beer primarily under the Corona Extra, Corona Familiar, Corona Hard Seltzer, Corona Light, Corona Non-Alcoholic, Modelo Negra, Modelo Oro, Victoria, Vicky Chamoy, and Pacifico brands. The leading beverage alcohol company is expected to announce its fiscal first-quarter earnings for 2026 after the market closes on Tuesday, Jul. 1.
Ahead of the event, analysts expect STZ to report a profit of $3.37 per share on a diluted basis, down 5.6% from $3.57 per share in the year-ago quarter. The company beat the consensus estimates in three of the last four quarters while missing the forecast on another occasion.
For the full year, analysts expect STZ to report EPS of $12.69, down 7.9% from $13.78 in fiscal 2025. However, its EPS is expected to rise 8.5% year over year to $13.77 in fiscal 2027.
STZ stock has considerably underperformed the S&P 500 Index’s ($SPX) 12.1% gains over the past 52 weeks, with shares down 38.2% during this period. Similarly, it underperformed the Consumer Staples Select Sector SPDR Fund’s (XLP) 3.8% gains over the same time frame.
STZ’s underperformance is due to tariff concerns on Mexican beer imports, shifting consumer sentiment, and slower beer sales growth. The company's plans to build a brewery in Mexicali were blocked and price hikes have reduced sales. Additionally, lower alcohol consumption among younger consumers and potential existential threats similar to tobacco companies have added to its weak performance.
On Apr. 9, STZ shares closed up more than 7% after reporting its Q4 results. Its adjusted EPS of $2.63 surpassed Wall Street expectations of $2.28. The company’s revenue was $2.2 billion, topping Wall Street forecasts of $2.1 billion. STZ expects full-year adjusted EPS in the range of $12.60 to $12.90.
Analysts’ consensus opinion on STZ stock is reasonably bullish, with a “Moderate Buy” rating overall. Out of 22 analysts covering the stock, nine advise a “Strong Buy” rating, three suggest a “Moderate Buy” rating, and 10 give a “Hold.” STZ’s average analyst price target is $206.54, indicating a potential upside of 28% from the current levels.
