CHICAGO— Constellation Brands raised its fiscal 2027 earnings outlook after reporting quarterly results that topped Wall Street expectations, as resilient demand for its beer portfolio helped offset continued pressure in the broader U.S. alcohol market.
The maker of Corona, Modelo Especial and Pacifico said its fiscal first-quarter comparable earnings came in at $3.43 per share for the quarter ended May 31, above analysts' expectations. Net sales totaled $2.43 billion, also exceeding market forecasts, while beer net sales increased about 2% from a year earlier.
The company said it now expects reported earnings per share for fiscal 2027 to come in above its previous outlook, while maintaining its comparable earnings guidance. The improved reported outlook reflects stronger-than-expected operating performance and other factors, even as management continues to monitor an uncertain consumer environment.
Beer remained the company's strongest business, with shipment growth and pricing supporting sales despite softer consumption trends among some consumers. Organic net sales in the wine and spirits business also increased, although reported sales continued to reflect the impact of previous portfolio divestitures.
Chief Executive Officer Nicholas Fink said the company remained focused on expanding its flagship beer brands while investing in adjacent categories and improving operational efficiency. The company also highlighted continued gains in U.S. beer market share across tracked retail channels.
Constellation said consumer demand continues to be affected by inflation, elevated gasoline prices and broader economic uncertainty, particularly among lower-income households. Executives also pointed to signs that purchasing trends among Hispanic consumers, a key customer base for its imported beer portfolio, have begun to stabilize after recent weakness.
The company said the removal of U.S. tariffs on aluminum imports earlier this year also eased some cost pressures tied to beverage can production, helping margins during the quarter.
Shares of Constellation Brands rose in after-hours trading following the results as investors welcomed the earnings beat and higher reported earnings outlook. Analysts said the company's premium imported beer business continues to outperform much of the broader alcoholic beverage industry despite slowing category growth.
Constellation said it continues to expect fiscal 2027 operating cash flow and free cash flow to remain in line with previous guidance as it invests behind its core brands and returns capital to shareholders.
