Constellation Brands (NYSE:STZ) Posts Quarterly Earnings Results, Misses Estimates By $0.26 EPS

Constellation Brands (NYSE:STZ) released its quarterly earnings data on Tuesday. The company reported $3.43 earnings per share for the quarter, missing analysts’ consensus estimates of $3.69 by ($0.26), Zacks reports. Constellation Brands had a return on equity of 25.97% and a net margin of 18.87%.The business had revenue of $2.43 billion during the quarter, compared to the consensus estimate of $2.39 billion. During the same period last year, the company earned $3.22 EPS. The business’s revenue was down 3.3% on a year-over-year basis. Constellation Brands updated its FY 2027 guidance to 11.200-11.900 EPS.

Constellation Brands Stock Down 2.1%

Shares of STZ opened at $136.16 on Thursday. The company has a debt-to-equity ratio of 1.16, a current ratio of 1.08 and a quick ratio of 0.55. The stock has a market capitalization of $23.45 billion, a price-to-earnings ratio of 12.99, a price-to-earnings-growth ratio of 4.10 and a beta of 0.39. Constellation Brands has a 1 year low of $126.45 and a 1 year high of $178.13. The business’s 50 day simple moving average is $145.47 and its 200-day simple moving average is $150.16.

Constellation Brands Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Thursday, August 13th. Shareholders of record on Thursday, July 30th will be issued a dividend of $1.03 per share. This represents a $4.12 annualized dividend and a yield of 3.0%. The ex-dividend date is Thursday, July 30th. Constellation Brands’s dividend payout ratio (DPR) is currently 42.96%.

Key Stories Impacting Constellation Brands

Here are the key news stories impacting Constellation Brands this week:

• Positive Sentiment: Constellation Brands beat quarterly earnings estimates and revenue also came in above Wall Street forecasts, helped by solid beer performance and pricing gains. Constellation Brands’ Q1 Earnings Beat, Sales Top on Beer Strength
• Positive Sentiment: The company raised its FY2027 EPS guidance, signaling management confidence in profitability despite a tougher sales backdrop. Constellation Brands Reports First Quarter Fiscal 2027 Financial Results
• Positive Sentiment: Constellation Brands declared a $1.03 quarterly dividend, reinforcing cash return support for shareholders. Constellation Brands declares $1.03 dividend
• Positive Sentiment: Piper Sandler reaffirmed a neutral rating but set a $160 price target, implying upside from recent trading levels. Benzinga note on Piper Sandler rating

Insider Buying and Selling at Constellation Brands

In related news, EVP James O. Bourdeau sold 4,407 shares of the business’s stock in a transaction on Tuesday, May 12th. The shares were sold at an average price of $143.24, for a total value of $631,258.68. Following the sale, the executive vice president owned 9,109 shares in the company, valued at approximately $1,304,773.16. The trade was a 32.61% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Company insiders own 12.20% of the company’s stock.

Institutional Investors Weigh In On Constellation Brands

A number of hedge funds have recently bought and sold shares of STZ. HM Payson & Co. lifted its position in Constellation Brands by 10.0% during the fourth quarter. HM Payson & Co. now owns 701 shares of the company’s stock valued at $97,000 after purchasing an additional 64 shares during the last quarter. Johnson Financial Group Inc. raised its position in shares of Constellation Brands by 24.9% during the 4th quarter. Johnson Financial Group Inc. now owns 346 shares of the company’s stock valued at $48,000 after buying an additional 69 shares in the last quarter. Smartleaf Asset Management LLC lifted its holdings in shares of Constellation Brands by 5.9% in the 4th quarter. Smartleaf Asset Management LLC now owns 1,338 shares of the company’s stock valued at $188,000 after acquiring an additional 74 shares during the last quarter. GW&K Investment Management LLC lifted its holdings in shares of Constellation Brands by 58.9% in the 4th quarter. GW&K Investment Management LLC now owns 267 shares of the company’s stock valued at $37,000 after acquiring an additional 99 shares during the last quarter. Finally, Haverford Trust Co grew its position in Constellation Brands by 5.6% in the fourth quarter. Haverford Trust Co now owns 2,506 shares of the company’s stock worth $346,000 after acquiring an additional 132 shares in the last quarter. Hedge funds and other institutional investors own 77.34% of the company’s stock.

Analyst Upgrades and Downgrades

Several brokerages recently issued reports on STZ. Jefferies Financial Group decreased their target price on Constellation Brands from $158.00 to $157.00 and set a “hold” rating on the stock in a research note on Tuesday, June 23rd. JPMorgan Chase & Co. upped their price target on Constellation Brands from $168.00 to $169.00 and gave the stock a “neutral” rating in a research note on Thursday, June 25th. Sanford C. Bernstein reaffirmed an “outperform” rating on shares of Constellation Brands in a report on Wednesday. Needham & Company LLC reiterated a “buy” rating and set a $185.00 price objective on shares of Constellation Brands in a research report on Friday, June 26th. Finally, Bank of America lowered their target price on shares of Constellation Brands from $154.00 to $152.00 and set an “underperform” rating on the stock in a report on Thursday, May 28th. One equities research analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating, eight have assigned a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat, the company has an average rating of “Moderate Buy” and an average price target of $171.37.

About Constellation Brands

Constellation Brands, Inc is a leading producer and marketer of beer, wine and spirits, with operations spanning production, importation, marketing and distribution. The company’s beverage portfolio includes a range of premium and mainstream wines and spirits alongside major imported beer brands; in the U.S. market Constellation is widely known for its role in bringing Mexican imports such as Corona and Modelo to American consumers. Constellation supplies retail, on‑premise and foodservice channels and supports its brands with national sales and marketing platforms and supply‑chain capabilities.

The company traces its roots to the Canandaigua Wine Company, founded by Marvin Sands in 1945, and evolved through organic growth and acquisition into a diversified beverage company.