Key facts
- Constellation Brands beat Wall Street profit estimates for the first quarter.
- Demand for beer brands like Corona and Modelo Especial drove the results.
- Net sales decreased by 3.3% to $2.43 billion for the quarter ended May 31.
- The company affirmed its fiscal 2027 adjusted profit per share outlook of $11.20 to $11.90.
- The beer segment's net sales increased by 2% year-over-year.
Constellation Brands exceeded Wall Street's profit expectations for the first quarter, reporting $3.43 per share against estimates of $3.20. This performance was bolstered by robust demand for its popular beer brands, including Corona and Modelo Especial, despite broader macroeconomic pressures like inflation and high gas prices. The company's beer segment saw a 2% year-over-year increase in net sales, reaching $2.28 billion, while its wine and spirits business reported an 8% organic net sales rise.
Despite a 3.3% overall decline in net sales to $2.43 billion for the quarter ended May 31, the company affirmed its fiscal 2027 adjusted profit per share outlook of $11.20 to $11.90. Analysts at RBC Capital Markets pointed to the FIFA World Cup and moderating oil prices as potential future demand catalysts. Additionally, Constellation Brands benefited from the U.S. government's announcement that its products are no longer subject to aluminum tariffs, easing previous margin pressures.
Shares of Constellation Brands saw a rise of approximately 3.5% in extended trading following the earnings report.