We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Constellation Brands to Report Q4 Earnings: Can It Surprise Investors?
Read MoreHide Full Article
Key Takeaways
STZ to post Q4'26, expecting 34.2% and 12.6% of y/y dips in EPS to $1.73 and revenues to $1.89B, respectively.
STZ faces weak wine and spirits volumes after SVEDKA, and wine divestitures, plus inflation and brewery costs.
STZ invests in Mexico beer capacity and leans on Power Brands like The Prisoner, Kim Crawford and Meiomi.
Constellation Brands, Inc. (STZ - Free Report) is scheduled to release fourth-quarter fiscal 2026 results on April 8, 2026. The alcoholic beverage bigwig is expected to have recorded declines in its top and bottom lines in the to-be-reported quarter.
The Zacks Consensus Estimate for the company’s fiscal fourth-quarter earnings is pegged at $1.73 per share, indicating a 34.2% decline from the year-ago quarter’s actual. The consensus mark has moved up by a penny in the past 30 days. The consensus estimate for revenues is pegged at $1.89 billion, suggesting a 12.6% decline from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for the company’s fiscal 2026 earnings is pegged at $11.64 per share, indicating a 15.5% decline from the year-ago quarter’s actual. The consensus mark has been unchanged in the past 30 days. The consensus estimate for revenues is pegged at $9.1 billion, suggesting a 10.8% decline from the prior-year quarter’s reported figure.
In the last reported quarter, the alcohol behemoth delivered an earnings surprise of 15.04%. Its bottom line beat estimates by 8.6%, on average, in the trailing four quarters.
Our proven model does not conclusively predict an earnings beat for Constellation Brands this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here. You can uncover the best stocks before they are reported with our Earnings ESP Filter.
Constellation Brands currently has an Earnings ESP of -1.59% and a Zacks Rank #3.
Key Factors to Note Before STZ’s Q4 Results
Constellation Brands’ fourth-quarter fiscal 2026 results are expected to reflect the impacts of the continued sluggishness in the wine and spirits segment due to a decline in shipment volumes. The soft volumes are expected to reflect the impacts of the SVEDKA divestiture and the 2025 Wine divestitures, as well as changes in financial and volume with respect to distributor contractual obligations.
On the last reported quarter’s earnings call, management expects this softness to continue ahead. It expects organic net sales for the wine and spirits segment to decline 17-20% in fiscal 2026, and operating income to decrease 97-100%.
High packaging and raw material costs from continued inflationary pressures, as well as increased depreciation and operating costs from brewery capacity expansions, are likely to have been concerning. This is expected to have impacted the operating income in the beer, and wine and spirits businesses.
For fiscal 2026, management continues to project an enterprise organic net sales decrease of 4-6%. Beer segment net sales are likely to decline 2-4%. The company expects operating income to fall 7-9% for the beer segment. The company continues to anticipate comparable EPS of $11.30-$11.60 for fiscal 2026. STZ expects fiscal 2026 EPS to be $9.72-$10.02.
However, Constellation Brands is on track with its plans to invest in the next phase of capacity expansion in Mexico. This will help meet the potential demand for the high-end Mexican beer portfolio, including the Alternative Beverage Alcohol sub-space, which includes hard seltzers. The company has been on track to support the industry-leading beer business, reset its cost base and redefine the portfolio. It has been focused on boosting distribution gains and innovation.
Constellation Brands' premiumization strategy is proving successful, as demonstrated by accelerated growth of its Power Brands. The wine and spirits business has been transitioning its portfolio toward higher-end brands that align better with consumer-led premiumization trends. Key growth drivers included the company's high-end Power Brands, such as The Prisoner Brand Family, Kim Crawford and Meiomi.
STZ Stock’s Valuation Picture
From a valuation perspective, Constellation Brands offers an attractive opportunity, trading at a discount relative to historical and industry benchmarks. With a forward 12-month price-to-earnings ratio of 12.13X, which is below the five-year high of 23.57X and the Beverages - Alcohol industry’s average of 14.45X, the stock offers compelling value for investors seeking exposure to the alcohol beverages space.
Image Source: Zacks Investment Research
The recent market movements show that STZ shares gained 6.1% in the past three months compared with the industry's 4.1% growth.
Image Source: Zacks Investment Research
Stocks With the Favorable Combination
Here are some companies, which, according to our model, have the right combination of elements to post an earnings beat this time around:
PepsiCo Inc. (PEP - Free Report) presently has an Earnings ESP of +0.03% and a Zacks Rank #3. The company is expected to register top and bottom-line growth when it reports first-quarter 2026 results. The Zacks Consensus Estimate for quarterly revenues is pegged at $18.95 billion, which indicates a rise of 5.7% from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for quarterly earnings has been unchanged in the past 30 days. The consensus mark for PepsiCo’s earnings indicates growth of 4.7% from the year-ago quarter’s reported number. PEP delivered an earnings surprise of 1.2%, on average, in the trailing four quarters.
The Coca-Cola Company (KO - Free Report) currently has an Earnings ESP of +0.54% and a Zacks Rank #3. The Zacks Consensus Estimate for first-quarter 2026 EPS is pegged at 81 cents, which implies an increase of 11% from the year-ago quarter’s actual. The consensus mark has been unchanged in the past 30 days.
The consensus mark for Coca-Cola’s quarterly revenues is pegged at $12.3billion, which indicates growth of 10.6% from the figure reported in the prior-year quarter. KO delivered a trailing four-quarter earnings surprise of 3.6%, on average.
Altria Group (MO - Free Report) currently has an Earnings ESP of +1.64% and a Zacks Rank #3. The company is expected to register growth in its top and bottom lines when it reports first-quarter 2026 results. The Zacks Consensus Estimate for MO’s quarterly earnings has moved up by a penny in the past 30 days to $1.25 per share. The consensus estimate for earnings indicates 1.6% growth from the year-ago quarter's number.
The Zacks Consensus Estimate for Altria Group’s quarterly revenues is pegged at $4.6 billion, implying a rise of 1% from the figure reported in the prior-year quarter. MO delivered an earnings surprise of 2.5%, on average, in the trailing four quarters.
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.
View the Zacks #1 Rank List
Image: Bigstock
Constellation Brands to Report Q4 Earnings: Can It Surprise Investors?
Key Takeaways
Constellation Brands, Inc. (STZ - Free Report) is scheduled to release fourth-quarter fiscal 2026 results on April 8, 2026. The alcoholic beverage bigwig is expected to have recorded declines in its top and bottom lines in the to-be-reported quarter.
The Zacks Consensus Estimate for the company’s fiscal fourth-quarter earnings is pegged at $1.73 per share, indicating a 34.2% decline from the year-ago quarter’s actual. The consensus mark has moved up by a penny in the past 30 days. The consensus estimate for revenues is pegged at $1.89 billion, suggesting a 12.6% decline from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for the company’s fiscal 2026 earnings is pegged at $11.64 per share, indicating a 15.5% decline from the year-ago quarter’s actual. The consensus mark has been unchanged in the past 30 days. The consensus estimate for revenues is pegged at $9.1 billion, suggesting a 10.8% decline from the prior-year quarter’s reported figure.
In the last reported quarter, the alcohol behemoth delivered an earnings surprise of 15.04%. Its bottom line beat estimates by 8.6%, on average, in the trailing four quarters.
Constellation Brands Inc Price and EPS Surprise
Constellation Brands Inc price-eps-surprise | Constellation Brands Inc Quote
What the Zacks Model Says for STZ Stock
Our proven model does not conclusively predict an earnings beat for Constellation Brands this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here. You can uncover the best stocks before they are reported with our Earnings ESP Filter.
Constellation Brands currently has an Earnings ESP of -1.59% and a Zacks Rank #3.
Key Factors to Note Before STZ’s Q4 Results
Constellation Brands’ fourth-quarter fiscal 2026 results are expected to reflect the impacts of the continued sluggishness in the wine and spirits segment due to a decline in shipment volumes. The soft volumes are expected to reflect the impacts of the SVEDKA divestiture and the 2025 Wine divestitures, as well as changes in financial and volume with respect to distributor contractual obligations.
On the last reported quarter’s earnings call, management expects this softness to continue ahead. It expects organic net sales for the wine and spirits segment to decline 17-20% in fiscal 2026, and operating income to decrease 97-100%.
High packaging and raw material costs from continued inflationary pressures, as well as increased depreciation and operating costs from brewery capacity expansions, are likely to have been concerning. This is expected to have impacted the operating income in the beer, and wine and spirits businesses.
For fiscal 2026, management continues to project an enterprise organic net sales decrease of 4-6%. Beer segment net sales are likely to decline 2-4%. The company expects operating income to fall 7-9% for the beer segment. The company continues to anticipate comparable EPS of $11.30-$11.60 for fiscal 2026. STZ expects fiscal 2026 EPS to be $9.72-$10.02.
However, Constellation Brands is on track with its plans to invest in the next phase of capacity expansion in Mexico. This will help meet the potential demand for the high-end Mexican beer portfolio, including the Alternative Beverage Alcohol sub-space, which includes hard seltzers. The company has been on track to support the industry-leading beer business, reset its cost base and redefine the portfolio. It has been focused on boosting distribution gains and innovation.
Constellation Brands' premiumization strategy is proving successful, as demonstrated by accelerated growth of its Power Brands. The wine and spirits business has been transitioning its portfolio toward higher-end brands that align better with consumer-led premiumization trends. Key growth drivers included the company's high-end Power Brands, such as The Prisoner Brand Family, Kim Crawford and Meiomi.
STZ Stock’s Valuation Picture
From a valuation perspective, Constellation Brands offers an attractive opportunity, trading at a discount relative to historical and industry benchmarks. With a forward 12-month price-to-earnings ratio of 12.13X, which is below the five-year high of 23.57X and the Beverages - Alcohol industry’s average of 14.45X, the stock offers compelling value for investors seeking exposure to the alcohol beverages space.
Image Source: Zacks Investment Research
The recent market movements show that STZ shares gained 6.1% in the past three months compared with the industry's 4.1% growth.
Image Source: Zacks Investment Research
Stocks With the Favorable Combination
Here are some companies, which, according to our model, have the right combination of elements to post an earnings beat this time around:
PepsiCo Inc. (PEP - Free Report) presently has an Earnings ESP of +0.03% and a Zacks Rank #3. The company is expected to register top and bottom-line growth when it reports first-quarter 2026 results. The Zacks Consensus Estimate for quarterly revenues is pegged at $18.95 billion, which indicates a rise of 5.7% from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for quarterly earnings has been unchanged in the past 30 days. The consensus mark for PepsiCo’s earnings indicates growth of 4.7% from the year-ago quarter’s reported number. PEP delivered an earnings surprise of 1.2%, on average, in the trailing four quarters.
The Coca-Cola Company (KO - Free Report) currently has an Earnings ESP of +0.54% and a Zacks Rank #3. The Zacks Consensus Estimate for first-quarter 2026 EPS is pegged at 81 cents, which implies an increase of 11% from the year-ago quarter’s actual. The consensus mark has been unchanged in the past 30 days.
The consensus mark for Coca-Cola’s quarterly revenues is pegged at $12.3billion, which indicates growth of 10.6% from the figure reported in the prior-year quarter. KO delivered a trailing four-quarter earnings surprise of 3.6%, on average.
Altria Group (MO - Free Report) currently has an Earnings ESP of +1.64% and a Zacks Rank #3. The company is expected to register growth in its top and bottom lines when it reports first-quarter 2026 results. The Zacks Consensus Estimate for MO’s quarterly earnings has moved up by a penny in the past 30 days to $1.25 per share. The consensus estimate for earnings indicates 1.6% growth from the year-ago quarter's number.
The Zacks Consensus Estimate for Altria Group’s quarterly revenues is pegged at $4.6 billion, implying a rise of 1% from the figure reported in the prior-year quarter. MO delivered an earnings surprise of 2.5%, on average, in the trailing four quarters.