Constellation Brands Surpasses Q2 Earnings and Revenue Expectations

Constellation Brands recently announced stronger-than-expected results for the second quarter, showcasing the resilience of its beer division amid challenges faced by the broader beverage market. Following the report, the company’s stock saw a slight increase of 0.7%.

The company reported adjusted earnings per share (EPS) of $4.32, exceeding analyst estimates of $4.08. Revenue for the quarter reached $3.14 billion, surpassing the consensus forecast of $2.95 billion and demonstrating year-over-year growth.

The beer segment, which features well-known brands such as Corona and Modelo, achieved mid-single-digit net sales growth and sustained momentum in expanding its operating margins, with double-digit increases in operating income. This segment’s dollar sales growth outperformed other beverage categories within tracked channels.

“Although the current macroeconomic conditions have impacted demand for beverage alcohol and consumer packaged goods overall, we delivered impressive results in the second quarter of Fiscal ’25,” stated Bill Newlands, President and CEO of Constellation Brands.

The company reaffirmed its updated comparable EPS guidance for fiscal 2025, projecting a range of $13.60 to $13.80, closely aligning with analyst expectations of $13.69. Additionally, Constellation revised its fiscal 2025 reported EPS outlook to between $4.05 and $4.25, accounting for a non-cash goodwill impairment loss of $2.25 billion related to its Wine and Spirits division.

Constellation Brands also maintained its fiscal 2025 targets for operating cash flow, aiming for $2.8 to $3.0 billion, and projecting free cash flow between $1.4 and $1.5 billion.