The Investor
01 Jul 2026, 09:37
Constellation Brands (STZ) Stock Rises Premarket as Beer Business Strength Offsets Wine Weakness
Constellation Brands (NYSE: STZ) shares gained 2.4% in premarket trading after the company reported fiscal first-quarter 2027 results that highlighted resilient beer demand, strong earnings growth, and reaffirmed its full-year comparable earnings outlook.
The company posted net sales of $2.43 billion, down 3% year over year on a reported basis, reflecting the impact of last year's wine divestitures. However, organic net sales increased 3%, while reported earnings per share climbed 31% to $3.79 and comparable EPS rose 7% to $3.43.
Constellation's Beer business remained the key growth driver, with net sales rising 2% as higher shipment volumes and favorable pricing offset a slight decline in depletions. Modelo Especial retained its position as the top-selling beer brand by dollar sales in U.S. tracked channels, while Pacifico and Victoria continued delivering strong market share gains.
Although reported Wine and Spirits sales fell sharply following previously announced divestitures, the remaining portfolio generated 8% organic net sales growth and continued to outperform the broader category in U.S. tracked channels.
The company also generated $662 million in operating cash flow and $485 million in free cash flow during the quarter, repurchased $324 million of shares year-to-date, and declared a quarterly dividend of $1.03 per share. Management updated reported EPS guidance to $11.50-$12.20 while reaffirming comparable EPS guidance of $11.20-$11.90 for fiscal 2027.
Investors appeared encouraged by the continued strength of Constellation's premium beer portfolio, solid profitability, and confidence in the company's outlook, pushing STZ shares roughly 2.4% higher in premarket trading.
Constellation Brands (NYSE: STZ) shares gained 2.4% in premarket trading after the company reported fiscal first-quarter 2027 results that highlighted resilient beer demand, strong earnings growth, and reaffirmed its full-year comparable earnings outlook.
The company posted net sales of $2.43 billion, down 3% year over year on a reported basis, reflecting the impact of last year's wine divestitures. However, organic net sales increased 3%, while reported earnings per share climbed 31% to $3.79 and comparable EPS rose 7% to $3.43.
Constellation's Beer business remained the key growth driver, with net sales rising 2% as higher shipment volumes and favorable pricing offset a slight decline in depletions. Modelo Especial retained its position as the top-selling beer brand by dollar sales in U.S. tracked channels, while Pacifico and Victoria continued delivering strong market share gains.
Although reported Wine and Spirits sales fell sharply following previously announced divestitures, the remaining portfolio generated 8% organic net sales growth and continued to outperform the broader category in U.S. tracked channels.
The company also generated $662 million in operating cash flow and $485 million in free cash flow during the quarter, repurchased $324 million of shares year-to-date, and declared a quarterly dividend of $1.03 per share. Management updated reported EPS guidance to $11.50-$12.20 while reaffirming comparable EPS guidance of $11.20-$11.90 for fiscal 2027.
Investors appeared encouraged by the continued strength of Constellation's premium beer portfolio, solid profitability, and confidence in the company's outlook, pushing STZ shares roughly 2.4% higher in premarket trading.
