Constellation Brands: Beer Growth and Buybacks Mask Stock's Slump

Constellation Brands topped revenue expectations but missed on adjusted EPS in its fiscal 2027 first-quarter report, even as the stock trades near multi-year lows.

The beer segment, led by Modelo Especial and Corona Extra, kept growing while Wine and Spirits posted strong organic sales gains despite a large reported decline tied to a divestiture.

New CEO Nicholas Fink outlined an occasion-based growth strategy as the company continued returning cash to shareholders through buybacks and dividends amid raised full-year guidance.

Constellation Brands NYSE: STZ delivered its fiscal year 2027 Q1 report on June 30 with mixed results. Revenue of $2.43 billion beat expectations for $2.39 billion. However, Constellation missed the bottom line, reporting adjusted earnings per share (EPS) of $3.43, below expectations of $3.70. However, the earnings figure was higher year over year (YOY). Plus, management raised its full-year reported EPS outlook to $11.50 to $12.20 and reaffirmed comparable guidance of $11.20 to $11.90. At the midpoint, the reported EPS would be 23% higher YOY.

That hasn’t done much to satisfy investors. As of the market close on July 8, STZ continues to trade near multi-year lows around $130, keeping shares below their 200-day moving average of roughly $146, and the stock's MACD remains in negative territory.