Constellation Brands Pre-Q1 Earnings: Are Trends Pointing to a Beat?

Constellation Brands, Inc. STZ is scheduled to release first-quarter fiscal 2026 results on July 1, 2025. The alcoholic beverage bigwig is expected to have recorded top and bottom-line declines in the to-be-reported quarter.The Zacks Consensus Estimate for the company’s fiscal first-quarter earnings is pegged at $3.34 per share, indicating a 6.4% decline from the year-ago quarter’s actual. The consensus mark has moved down 1.5% in the past seven days. The consensus estimate for revenues is pegged at $2.6 billion, indicating a 3.5% decline from the prior-year quarter’s reported figure. (See the Zacks Earnings Calendar to stay ahead of market-making news.)In the last reported quarter, the alcohol behemoth delivered a negative earnings surprise of 15.4%. Its bottom line beat estimates by 5.2%, on average, in the trailing four quarters.Constellation Brands Inc Price and EPS Surprise  Constellation Brands Inc price-eps-surprise | Constellation Brands Inc QuoteWhat Zacks Model Says for the STZ StockOur 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 has an Earnings ESP of -1.64% and a Zacks Rank #3.Key Factors to Note Before STZ’s Q1 ResultsConstellation Brands’ beer segment remains resilient, with minimal impacts of broader economic conditions. The company’s beer division is expected to have benefited from cost-saving measures and efficiency initiatives. STZ is poised for continued growth in its beer portfolio, driven by brands like Modelo Especial, Corona Extra, Pacifico and Modelo Chelada. The beer segment’s premiumization strategy, including flavored beers and seltzers, is expected to have boosted the top line in the fiscal first quarter.The company’s wine and spirits business reverted to growth in the fourth quarter of fiscal 2025. The segment’s sales in the to-be-reported quarter are expected to have benefited from an increase in shipment volumes. Sales growth is expected to be supported by contractual distributor payments, a favorable product mix and volume growth in the U.S. wholesale business, along with increased international volumes, primarily driven by Canada.Constellation Brands' premiumization strategy and capacity expansion in Mexico have been progressing well. The beer segment has 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 also investing in its Power Brands through innovation and capitalizing on priority consumer trends with successful product introductions. Gains from these efforts are expected to have bolstered the top line in the fiscal first quarter.However, Constellation Brands continues to face inflation-driven pressures, with higher packaging and raw material costs weighing on margins. Increased depreciation and operating costs tied to brewery capacity expansions continue to be a drag.The company operates in a tough environment, marked by cautious consumer spending and persistent value-seeking behavior, which could dampen demand. Potential tariff changes and broader macro shifts may further challenge profitability. These headwinds are expected to have impacted the company’s margins in the to-be-reported quarter.STZ Stock’s Valuation PictureFrom 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 12.38X, which is below the five-year high of 23.57X and the Beverages - Alcohol industry’s average of 15.27X, 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 have lost 37.1% in the past year compared with the industry's 8.8% decline.STZ Stock’s 1-Year Price Performance Image Source: Zacks Investment Research Stocks With the Favorable CombinationHere are some companies, which, according to our model, have the right combination of elements to post an earnings beat this time around:Mondelez International MDLZ presently has an Earnings ESP of +4.04% and a Zacks Rank of 2. The company is expected to register top-line growth when it reports second-quarter 2025 results. The Zacks Consensus Estimate for quarterly revenues is pegged at $8.9 billion, which indicates a rise of 6.1% 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 down 67 cents per share in the past seven days. The consensus mark for MDLZ’s earnings indicates a decline of 22.1% from the year-ago quarter’s number. MDLZ delivered an earnings surprise of 9.8%, on average, in the trailing four quarters.Primo Brands Corporation PRMB currently has an Earnings ESP of +5.14% and a Zacks Rank of 3. The company is expected to register top and bottom-line growth when it reports second-quarter 2025 results. The Zacks Consensus Estimate for PRMB’s quarterly earnings has moved down by a penny in the past seven days to 44 cents per share. The consensus mark indicates a 69.2% surge from the year-ago quarter’s reported number.The Zacks Consensus Estimate for PRMB’s quarterly revenues is pegged at $1.8 billion, which implies an upsurge of 277.6% from the figure reported in the prior-year quarter. Primo Brands delivered an earnings surprise of 3.5%, on average, in the trailing four quarters.Corteva CTVA currently has an Earnings ESP of +3.22% and a Zacks Rank of 3. The company is expected to register top and bottom-line growth when it reports second-quarter 2025 results. The Zacks Consensus Estimate for CTVA’s quarterly earnings has been unchanged in the past 30 days at $1.92 per share. The consensus estimate for earnings indicates 4.9% growth from the year-ago quarter's number.The Zacks Consensus Estimate for Corteva’s quarterly revenues is pegged at $6.3 billion, implying a rise of 2.3% from the figure reported in the prior-year quarter. CTVA delivered a negative earnings surprise of 7.2%, on average, in the trailing four quarters.Zacks Names #1 Semiconductor StockIt's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Constellation Brands Inc (STZ): Free Stock Analysis Report Mondelez International, Inc. (MDLZ): Free Stock Analysis Report Corteva, Inc. (CTVA): Free Stock Analysis Report Primo Brands Corporation (PRMB): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks