Constellation Brands Q1 EPS Beats; FY27 Guidance Midpoint Trails Analysts
STZ•Constellation Brands reported first-quarter adjusted EPS of $3.43 versus the $3.25 consensus and revenue of $2.43 billion, despite a 3% year-over-year sales decline. The beer segment drove a 2% net sales gain to $2.28 billion while management affirmed fiscal 2027 adjusted EPS guidance of $11.20 to $11.90, below analysts’ estimates.
1. First-Quarter Results
Constellation Brands delivered first-quarter adjusted EPS of $3.43, surpassing the $3.25 consensus by $0.18, and generated revenue of $2.43 billion despite a 3% year-over-year decline in overall sales.
2. Segment Performance
The beer segment drove net sales up 2% to $2.28 billion and operating income to $891.4 million, with shipments rising 1.8% and brands like Pacifico (+21%), Victoria (+14%) and Modelo Chelada (+6%) offsetting declines in Modelo Especial (-2%) and Corona Extra (-5%); wine and spirits posted 8% organic growth but saw reported net sales fall 47% due to 2025 divestitures.
3. Fiscal 2027 Guidance
Management affirmed adjusted EPS guidance of $11.20 to $11.90 for fiscal 2027, with the midpoint of $11.55 falling below the $11.74 analyst consensus, and projected enterprise organic net sales growth of -1% to 1% alongside free cash flow of $1.6 billion to $1.7 billion.
4. Cash Flow and Returns
First-quarter operating cash flow reached $662 million and free cash flow was $485 million, marking increases of 4% and 9% respectively, while the company returned over $400 million to shareholders through $324 million in share repurchases and dividends.
