Constellation Brands tops second-quarter estimates on resilient demand
STZ•Constellation Brands beat second-quarter sales and adjusted profit estimates, with sales rising 6% to $2.63 billion and adjusted earnings of $3.74 per share. It agreed to buy SpikedAde for $75 million upfront, with up to $278 million in additional contingent payments.
1. Quarterly results
Net sales for the quarter ended August 31 rose 6% to $2.63 billion, above analysts’ $2.54 billion estimate. Adjusted earnings were $3.74 per share, compared with the $3.56 estimate. Sales rose 5% in the beer segment and 17% in wine and spirits.
2. SpikedAde purchase
Constellation said it bought vodka-based ready-to-drink beverage company SpikedAde for $75 million at closing, with up to an additional $278 million over five years contingent on the brand’s performance and Constellation’s capital-allocation priorities.
3. Forecast and margins
The company reaffirmed its fiscal 2027 adjusted earnings forecast of $11.20 to $11.90 per share and organic net sales outlook of a 1% decline to 1% growth. It lowered its annual operating margin forecast to 31% to 32%, from 32% to 33%.
