Constellation Brands, Inc. (STZ), headquartered in Victor, New York, produces, imports, markets, and sells beer, wine, and spirits. With a market cap of $33.4 billion, the company provides beer primarily under the Corona Extra, Corona Familiar, Corona Hard Seltzer, Corona Light, Corona Non-Alcoholic, Modelo Negra, Modelo Oro, Victoria, Vicky Chamoy, and Pacifico brands. The leading beverage alcohol company is expected to announce its fiscal fourth-quarter earnings for 2025 after the market closes on Wednesday, Apr. 9.
Ahead of the event, analysts expect STZ to report a profit of $2.29 per share on a diluted basis, up 1.3% from $2.26 per share in the year-ago quarter. The company beat the consensus estimates in three of the last four quarters while missing the forecast on another occasion.
For the full year, analysts expect STZ to report EPS of $13.43, up 11.4% from $12.06 in fiscal 2024. Its EPS is expected to rise 3.9% year over year to $13.95 in fiscal 2026.
STZ stock has underperformed the S&P 500’s ($SPX) 8.9% gains over the past 52 weeks, with shares down 31.7% during this period. Similarly, it underperformed the Consumer Staples Select Sector SPDR Fund’s (XLP) 8.2% gains over the same time frame.
Constellation Brands faces risks due to trade tensions between the U.S. and Mexico, which could lead to tariffs affecting their brands like Modelo and Corona. The company's underperformance is also attributed to subdued consumer spending, impacting sales and raising inflation concerns, resulting in a decline in their stock price.
On Jan. 10, STZ shares closed down more than 17% after reporting its Q3 results. Its adjusted EPS of $3.25 fell short of Wall Street expectations of $3.34. The company’s revenue was $2.46 billion, missing Wall Street forecasts of $2.54 billion. STZ expects full-year adjusted EPS in the range of $13.40 to $13.80.
Analysts’ consensus opinion on STZ stock is reasonably bullish, with a “Moderate Buy” rating overall. Out of 22 analysts covering the stock, eight advise a “Strong Buy” rating, three suggest a “Moderate Buy” rating, and 11 give a “Hold.” STZ’s average analyst price target is $228.87, indicating a potential upside of 25.2% from the current levels.
