Shares of Constellation Brands, Inc. (NYSE: STZ) rose over 1% on Monday. The stock has gained over 8% in the past three months. The alcoholic beverages producer is set to report its earnings results for the fourth quarter of 2026 on Wednesday, April 8, after market close. Here’s a look at what to expect from the earnings report:
Revenue
Analysts are projecting revenue of $1.88 billion for Constellation in the fourth quarter of 2026, which indicates a decline of over 13% from the same period a year ago. In the third quarter of 2026, revenues decreased 10% year-over-year to $2.22 billion.
Earnings
The consensus estimate for earnings per share in Q4 2026 is $1.71, which implies a nearly 35% decline from the prior-year quarter. In Q3 2026, adjusted EPS fell 6% YoY to $3.06.
Points to note
Constellation’s business has been impacted by inflationary headwinds and pressures on consumers’ discretionary incomes. The beer business has been pressured by weakness among the Hispanic consumer segment as well as consumers involved in heavy-duty jobs like construction, as both these cohorts contribute meaningfully to beer sales.
In Q3, beer segment sales dipped 1% due to lower volumes, partly offset by higher pricing. Despite the weakness, the company’s brand loyalty remained relatively strong, with many of its brands gaining or maintaining their market positions. For the fourth quarter, STZ expects volume declines to improve YoY but margins are expected to be pressured by higher expenses. The company continues to invest in its beer business with a new brewery being developed in Mexico and expansions at existing breweries.
In the wines and spirits division, results were impacted by the SVEDKA divestiture and the 2025 Wine divestitures. In Q3, sales declined 51% YoY, with a 70.6% drop in volumes. The to-be-reported quarter is likely to see similar results. STZ is focusing on its higher-end wine brands which are performing well.
Constellation will get a new CEO this month as Nicholas Fink succeeds Bill Newlands. In light of this change, the company is likely to see new strategic plans and actions come into force in the near future.
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