Constellation Brands Inc Class A (NYSE:STZ) projected fiscal 2027 earnings below analyst forecasts on Wednesday, warning that an uncertain macroeconomic backdrop could weigh on performance.
The company’s shares slipped about 1.2% in premarket trading on Thursday following the announcement.
Constellation said it expects comparable earnings per share for fiscal 2027 to range between $11.20 and $11.90, falling short of Wall Street’s consensus estimate of $12.44 per share.
“As we look ahead to fiscal 2027, we expect consumers will continue to navigate a shifting macroeconomic environment, but we remain encouraged by the momentum we saw in the fourth quarter,” said Bill Newlands, President & CEO at Constellation Brands, who is scheduled to retire next week.
Morgan Stanley analyst Dara Mohsenian described the company’s outlook as “seemingly conservative.”
“The stock will probably give up some of its recent relative outperformance given below consensus FY27 guidance,” he added.
Separately, analysts at Bank of America reaffirmed their Underperform rating on the stock, saying they “expect a negative reaction in shares.”
Despite the cautious outlook, Constellation Brands reported stronger-than-expected fourth-quarter sales, supported by steady demand for its beer portfolio, including the Corona brand.
Net sales for the quarter ended Feb. 28 declined 11% to $1.92 billion but still exceeded analyst expectations of $1.84 billion. The company said beer segment net sales rose more than 1% compared with the same period a year earlier, driven by shipment growth of 1.1% and favorable pricing, though partially offset by an unfavorable product mix.
Fourth-quarter earnings per share came in at $1.90, representing a smaller decline than analysts had anticipated. Market expectations had called for earnings of $1.68 per share for the quarter.
Earlier this year, the company also announced a leadership transition. In February, Constellation Brands said its board had appointed Nicholas Fink as the next President and Chief Executive Officer, effective April 13, 2026. Fink, who has served on the company’s board since 2021, will succeed Bill Newlands, who will step down as CEO but remain a member of the board of directors.