Constellation Brands (NYSE:STZ) Issues Quarterly Earnings Results, Beats Expectations By $0.21 EPS

Key Points

• Constellation Brands reported quarterly earnings per share of $3.43, beating analyst expectations of $3.22 by $0.21.
• The stock traded lower after the announcement, falling to $139.11 on heavier-than-average volume, even as the company showed a strong 26.18% return on equity and 17.29% net margin.
• The company also raised its quarterly dividend to $1.03 per share, or $4.12 annually, for a yield of about 3.0%.

Constellation Brands (NYSE:STZ - Get Free Report) released its quarterly earnings results on Tuesday. The company reported $3.43 earnings per share for the quarter, topping the consensus estimate of $3.22 by $0.21, Zacks reports. Constellation Brands had a return on equity of 26.18% and a net margin of 17.29%.

Constellation Brands Price Performance

STZ traded down $0.55 on Tuesday, reaching $139.11. The stock had a trading volume of 4,371,143 shares, compared to its average volume of 2,278,931. Constellation Brands has a fifty-two week low of $126.45 and a fifty-two week high of $178.13. The firm has a 50-day moving average of $146.40 and a 200-day moving average of $150.32. The company has a current ratio of 1.08, a quick ratio of 0.55 and a debt-to-equity ratio of 1.16. The company has a market capitalization of $23.95 billion, a price-to-earnings ratio of 14.51, a price-to-earnings-growth ratio of 4.31 and a beta of 0.39.

Constellation Brands Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, May 14th. Investors of record on Wednesday, April 29th were given a dividend of $1.03 per share. The ex-dividend date was Wednesday, April 29th. This represents a $4.12 dividend on an annualized basis and a yield of 3.0%. This is an increase from Constellation Brands's previous quarterly dividend of $1.02. Constellation Brands's dividend payout ratio is presently 42.96%.

More Constellation Brands News

Here are the key news stories impacting Constellation Brands this week:

• Positive Sentiment: Analysts and previews suggest beer demand may be stabilizing, with Modelo and Corona still seen as key growth drivers if volume trends continue to improve. Constellation Earnings Will Test Whether Beer Is Back
• Positive Sentiment: Some commentary points to a possible short-term lift from the 2026 World Cup, which could support beer sales if consumer demand strengthens. Constellation Brands Q1 Preview: Buffett Successor Dumped 95% Of Shares — Will Q1 Justify The Exit?
• Neutral Sentiment: Investors are waiting for Tuesday’s earnings release to see whether the company can meet or beat expectations and reset sentiment around the stock. This Modelo and Corona Beer Maker Reports Earnings Tuesday. Here's How Much Its Stock Could Move
• Neutral Sentiment: Wells Fargo lowered its price target to $170 from $185, but kept an overweight rating, signaling cautious optimism rather than a bearish call. Benzinga / Tickerreport coverage of Wells Fargo target cut
• Negative Sentiment: Several previews highlight expected revenue declines and continued margin pressure, which are weighing on investor sentiment heading into earnings. Constellation Brands (STZ) Stock: Earnings Preview Shows Beer Recovery Versus Margin Pressure
• Negative Sentiment: Recent commentary also notes demand softness in some key markets and lingering worries about profitability, helping explain why the stock has moved lower into earnings. Constellation Brands Falls Ahead of Earnings as Margin and Demand Concerns Linger

Insider Activity at Constellation Brands

In other news, EVP James O. Bourdeau sold 4,407 shares of Constellation Brands stock in a transaction dated Tuesday, May 12th. The stock was sold at an average price of $143.24, for a total transaction of $631,258.68. Following the sale, the executive vice president directly owned 9,109 shares of the company's stock, valued at approximately $1,304,773.16. This trade represents a 32.61% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Insiders own 12.20% of the company's stock.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in the business. Stance Capital LLC acquired a new position in Constellation Brands in the 3rd quarter valued at approximately $26,000. Strive Financial Group LLC bought a new stake in shares of Constellation Brands in the fourth quarter worth $27,000. GW&K Investment Management LLC increased its holdings in Constellation Brands by 58.9% in the fourth quarter. GW&K Investment Management LLC now owns 267 shares of the company's stock valued at $37,000 after purchasing an additional 99 shares during the period. Johnson Financial Group Inc. increased its holdings in Constellation Brands by 24.9% in the fourth quarter. Johnson Financial Group Inc. now owns 346 shares of the company's stock valued at $48,000 after purchasing an additional 69 shares during the period. Finally, Alvarez & Marsal Private Wealth Partners LLC bought a new position in Constellation Brands during the 4th quarter worth $50,000. Institutional investors own 77.34% of the company's stock.

Wall Street Analyst Weigh In

A number of equities research analysts have recently weighed in on the company. TD Cowen reissued a "buy" rating and set a $174.00 target price on shares of Constellation Brands in a report on Friday. Bank of America decreased their price target on shares of Constellation Brands from $154.00 to $152.00 and set an "underperform" rating on the stock in a research note on Thursday, May 28th. Roth Mkm reaffirmed a "buy" rating on shares of Constellation Brands in a research report on Thursday, April 9th. Citigroup reiterated a "buy" rating on shares of Constellation Brands in a research note on Monday, May 18th. Finally, Piper Sandler boosted their price objective on shares of Constellation Brands from $146.00 to $160.00 and gave the company a "neutral" rating in a report on Friday, April 10th. One analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating, eight have assigned a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus price target of $172.21.

About Constellation Brands

Constellation Brands, Inc is a leading producer and marketer of beer, wine and spirits, with operations spanning production, importation, marketing and distribution. The company's beverage portfolio includes a range of premium and mainstream wines and spirits alongside major imported beer brands; in the U.S. market Constellation is widely known for its role in bringing Mexican imports such as Corona and Modelo to American consumers. Constellation supplies retail, on‑premise and foodservice channels and supports its brands with national sales and marketing platforms and supply‑chain capabilities.

The company traces its roots to the Canandaigua Wine Company, founded by Marvin Sands in 1945, and evolved through organic growth and acquisition into a diversified beverage company.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.