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Constellation Brands Q1 Earnings Preview: What to Expect?
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Key Takeaways
Constellation Brands is expected to post Q1'27 EPS of $3.28, suggesting 1.9% y/y growth.
STZ is expected to gain from beer and wine & spirits momentum, premiumization, and Mexico capacity expansion.
STZ faces packaging, raw material, depreciation and brewery expansion costs that may impact operating income.
Constellation Brands, Inc. (STZ - Free Report) is scheduled to release first-quarter fiscal 2027 results on June 30, 2026. The alcoholic beverage bigwig is expected to have recorded growth in its bottom line in the to-be-reported quarter.
The Zacks Consensus Estimate for the company’s fiscal first-quarter earnings is pegged at $3.28 per share, indicating 1.9% growth from the year-ago quarter’s actual. The consensus mark has moved down 1.2% in the past 30 days. The consensus estimate for revenues is pegged at $2.4 billion, suggesting a 3.9% decline from the prior-year quarter’s reported figure.
In the last reported quarter, the alcohol behemoth delivered an earnings surprise of 9.2%. Its bottom line beat estimates by 7.1%, 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 -3.23% and a Zacks Rank #4 (Sell).
Key Factors to Note Before STZ’s Q1 Results
Constellation Brands’ first-quarter fiscal 2027 results are expected to reflect momentum in its beer, and wine & spirits businesses. The company is expected to have benefited from its premiumization strategy and investments in its capacity expansion in Mexico. The beer business continues to outperform the category in dollar share gains.
Premiumization continues to reinforce the company’s premium positioning via disciplined investment, portfolio expansion and consumer-led marketing. The beer segment has also been experiencing gains from premiumization, driven by growth in traditional beer and flavored categories, including seltzers, flavored beer, RTD spirits and flavored malt beverages. The company is investing in its Power Brands through innovation and capitalizing on priority consumer trends with successful product introductions.
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.
On the last reported quarter’s earnings call, management expressed confidence in the continued momentum of its beer and wine & spirits businesses, with growth expected across both segments.
However, 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.
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 11.94X, which is below the five-year high of 18.64X and the Beverages - Alcohol industry’s average of 15.58X, 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 lost 4.9% in the past three months against the industry's 13.6% 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:
Ollie's Bargain Outlet (OLLI - Free Report) presently has an Earnings ESP of +1.42% and a Zacks Rank #2. The company is expected to register top and bottom-line growth when it reports second-quarter fiscal 2026 results. The Zacks Consensus Estimate for quarterly revenues is pegged at $765.7 billion, which indicates a rise of 12.7% 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 moved up 1.7% in the past 30 days. The consensus mark for Ollie's earnings indicates growth of 19.2% from the year-ago quarter’s reported number. OLLI delivered an earnings surprise of 4.9%, on average, in the trailing four quarters.
Tyson Foods (TSN - Free Report) currently has an Earnings ESP of +2.17% and a Zacks Rank #3. The Zacks Consensus Estimate for third-quarter fiscal 2026 EPS is pegged at $1.04, which implies an increase of 14.3% from the year-ago quarter’s actual. The consensus mark has moved down 2.8% in the past seven days.
The consensus mark for Tyson Foods’ quarterly revenues is pegged at $14.3 billion, which indicates growth of 2.9% from the figure reported in the prior-year quarter. TSN delivered a trailing four-quarter earnings surprise of 18.1%, on average.
Colgate-Palmolive (CL - Free Report) currently has an Earnings ESP of +0.78% and a Zacks Rank #3. The company is expected to register growth in its top and bottom lines when it reports second-quarter 2026 results. The Zacks Consensus Estimate for CL’s quarterly earnings has moved down by a penny in the past 30 days to 96 cents per share. The consensus estimate for earnings indicates 3.3% growth from the year-ago quarter's number.
The Zacks Consensus Estimate for Colgate’s quarterly revenues is pegged at $5.4 billion, implying a rise of 4.7% from the figure reported in the prior-year quarter. CL delivered an earnings surprise of 3%, on average, in the trailing four quarters.
View the Zacks #1 Rank List
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Constellation Brands Q1 Earnings Preview: What to Expect?
Key Takeaways
Constellation Brands, Inc. (STZ - Free Report) is scheduled to release first-quarter fiscal 2027 results on June 30, 2026. The alcoholic beverage bigwig is expected to have recorded growth in its bottom line in the to-be-reported quarter.
The Zacks Consensus Estimate for the company’s fiscal first-quarter earnings is pegged at $3.28 per share, indicating 1.9% growth from the year-ago quarter’s actual. The consensus mark has moved down 1.2% in the past 30 days. The consensus estimate for revenues is pegged at $2.4 billion, suggesting a 3.9% decline from the prior-year quarter’s reported figure.
In the last reported quarter, the alcohol behemoth delivered an earnings surprise of 9.2%. Its bottom line beat estimates by 7.1%, 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 -3.23% and a Zacks Rank #4 (Sell).
Key Factors to Note Before STZ’s Q1 Results
Constellation Brands’ first-quarter fiscal 2027 results are expected to reflect momentum in its beer, and wine & spirits businesses. The company is expected to have benefited from its premiumization strategy and investments in its capacity expansion in Mexico. The beer business continues to outperform the category in dollar share gains.
Premiumization continues to reinforce the company’s premium positioning via disciplined investment, portfolio expansion and consumer-led marketing. The beer segment has also been experiencing gains from premiumization, driven by growth in traditional beer and flavored categories, including seltzers, flavored beer, RTD spirits and flavored malt beverages. The company is investing in its Power Brands through innovation and capitalizing on priority consumer trends with successful product introductions.
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.
On the last reported quarter’s earnings call, management expressed confidence in the continued momentum of its beer and wine & spirits businesses, with growth expected across both segments.
However, 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.
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 11.94X, which is below the five-year high of 18.64X and the Beverages - Alcohol industry’s average of 15.58X, 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 lost 4.9% in the past three months against the industry's 13.6% 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:
Ollie's Bargain Outlet (OLLI - Free Report) presently has an Earnings ESP of +1.42% and a Zacks Rank #2. The company is expected to register top and bottom-line growth when it reports second-quarter fiscal 2026 results. The Zacks Consensus Estimate for quarterly revenues is pegged at $765.7 billion, which indicates a rise of 12.7% 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 moved up 1.7% in the past 30 days. The consensus mark for Ollie's earnings indicates growth of 19.2% from the year-ago quarter’s reported number. OLLI delivered an earnings surprise of 4.9%, on average, in the trailing four quarters.
Tyson Foods (TSN - Free Report) currently has an Earnings ESP of +2.17% and a Zacks Rank #3. The Zacks Consensus Estimate for third-quarter fiscal 2026 EPS is pegged at $1.04, which implies an increase of 14.3% from the year-ago quarter’s actual. The consensus mark has moved down 2.8% in the past seven days.
The consensus mark for Tyson Foods’ quarterly revenues is pegged at $14.3 billion, which indicates growth of 2.9% from the figure reported in the prior-year quarter. TSN delivered a trailing four-quarter earnings surprise of 18.1%, on average.
Colgate-Palmolive (CL - Free Report) currently has an Earnings ESP of +0.78% and a Zacks Rank #3. The company is expected to register growth in its top and bottom lines when it reports second-quarter 2026 results. The Zacks Consensus Estimate for CL’s quarterly earnings has moved down by a penny in the past 30 days to 96 cents per share. The consensus estimate for earnings indicates 3.3% growth from the year-ago quarter's number.
The Zacks Consensus Estimate for Colgate’s quarterly revenues is pegged at $5.4 billion, implying a rise of 4.7% from the figure reported in the prior-year quarter. CL delivered an earnings surprise of 3%, on average, in the trailing four quarters.