Constellation Brands, Inc.: Beat — EPS $3.74, Revenue $2.63B
Earnings BeatQ2 2027 · After-market
@trystockwhiz
Did Constellation Brands, Inc. (STZ) beat earnings today?
Yes, Constellation Brands, Inc. (STZ) beat Wall Street analyst expectations for Q2 2027, reporting higher-than-expected EPS and higher-than-expected revenue.
Earnings Per Share+5.35% surprise
$3.74Actual
Expected: $3.55
vs. year ago +3.0%
Total Revenue+3.66% surprise
$2.63BActual
Expected: $2.54B
vs. year ago +6.0%
Released Oct 06 · 4:08 PM ET
Earning Report
| Metric | Q2 FY27 | Q2 FY26 | YoY Change % |
|---|---|---|---|
| Net Sales | $2.63B | $2.48B | +6.0% |
| └─Beer | $2.47B | $2.35B | +5.0% |
| └─Wine and Spirits | $159.40M | $136.00M | +17.0% |
| Net Income | $582.30M | $486.10M | +19.8% |
| GAAP Basic EPS | $3.32 | $2.65 | +25.0% |
| GAAP Diluted EPS | $3.32 | $2.65 | +25.0% |
| Comparable EPS | $3.74 | $3.63 | +3.0% |
Financial Outlook / Guidance
| Metric | Next Quarter Outlook | FY27 Outlook |
|---|---|---|
| Reported EPS | — | $11.85-$12.55 |
| Comparable EPS | — | $11.20-$11.90 |
| Enterprise Organic Net Sales | — | (1)%-1% |
| Beer Net Sales | — | (1)%-1% |
| Wine and Spirits Organic Net Sales | — | (1)%-1% |
| Enterprise Operating Margin | — | 31%-32% |
| Comparable Operating Margin | — | 32%-33% |
| Beer Operating Margin | — | 37%-38% |
| Wine and Spirits Operating Margin | — | 5%-6% |
| Operating Cash Flow | — | $2.4B-$2.5B |
| Capital Expenditures | — | ~$800M |
| Free Cash Flow | — | $1.6B-$1.7B |
| Net Sales | — | $8,910M-$9,090M |
| Operating Income | — | $2,745M-$2,895M |
| Comparable Adjustments | — | $90M |
| Comparable Operating Income | — | $2,835M-$2,985M |
| Asset Impairment | — | $68M |
| Derivative Settlements | — | $24M |
| Reconfiguration Costs | — | $17M |
| Transition Services | — | $16M |
| Restructuring Initiative | — | $9M |
| Sale of Business | — | $4M |
| Inventory Step-Up | — | $2M |
| Other Gains (Losses) | — | $2M |
| Derivative Gain (Loss) | — | $(53)M |
| EPS Comparable Adjustments | — | $(0.65) |
| Valuation Allowances | — | $(1.10) |
| Recent Divestitures | — | $(0.01) |
| Tax Attributes | — | $0.12 |
| Income from Unconsolidated Investments | — | $0.00 |
Business Highlights
- ➤Beer business was the #1 dollar and volume share gainer in Circana U.S. tracked channels.
- ➤Beer portfolio placed five brands among the top-15 U.S. beer dollar-share gainers.
- ➤Modelo Especial remained the #1 brand by dollar sales and the #3 dollar-share gainer.
- ➤Pacifico became a top-10 brand by dollar sales.
- ➤Wine portfolio was the #3 dollar share gainer in the total wine category.
- ➤Acquired SpikedAde, a spirit-based RTD brand in the emerging “Ade” segment.
- ➤SpikedAde acquisition included $75M at close and contingent consideration up to $278M.
- ➤Repurchased $530M of shares year-to-date through September 2026.
- ➤Declared a quarterly Class A common-stock cash dividend of $1.03 per share.
- ➤Maintained target comparable net leverage ratio of approximately 3.0x.
Management Commentary
Nicholas Fink, President & CEO
“During the second quarter, our portfolio of iconic brands continued to resonate with consumers. We have sharpened our execution and increased investment across the business, and are beginning to see early returns through accelerating dollar and volume share gains in both our Beer and Wine & Spirits businesses relative to the first quarter. As a result, we were the #1 dollar share gainer in beverage alcohol during the second quarter. Looking ahead, we remain focused on building on this momentum by expanding our reach across more consumers and occasions, while investing behind the brands and capabilities that will support our next phase of growth.”
Garth Hankinson, Executive Vice President & CFO
“Through the first half of fiscal 2027, our strong cash flow generation enabled us to continue executing our disciplined and balanced capital allocation priorities. We maintained our target comparable net leverage ratio of ~3.0x, returned more than $800 million to shareholders through share repurchases and dividends, and continued to invest in our business through increased brand marketing support. As we look to the second half of the year, we remain committed to supporting long-term growth, maintaining financial flexibility, and returning capital to shareholders.”