Constellation Brands Inc (NYSE:STZ) shares jumped 5.8% in early Thursday trading after the company reported fourth-quarter sales and earnings that exceeded analysts’ forecasts, even as it issued a cautious outlook for fiscal 2027.
For the quarter ended February 28, net sales fell 11% to $1.92 billion, but beat the $1.84 billion expected by analysts, supported by steady demand for its beer portfolio, including the Corona brand.
The company said beer segment net sales rose slightly over 1% from a year earlier, driven by shipment growth of 1.1% and favorable pricing, partially offset by an unfavorable product mix.
Earnings per share came in at $1.90, down from the prior year but above the $1.68 per share expected by analysts, reflecting stronger-than-anticipated beer shipments and depletions. Jefferies noted that beer depletions rose 0.6% versus a Street estimate of a 0.6% decline, while shipments increased 1.1% versus an expected 1% decline.
Despite the upbeat quarterly results, Constellation Brands projected fiscal 2027 earnings below analyst expectations, citing macroeconomic uncertainty. The company forecast enterprise organic sales to range from a 1% decline to a 1% increase, compared with prior estimates of 1.8% growth, and projected earnings of $11.20 to $11.90 per share versus the $12.61 analysts had anticipated.