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Constellation Brands, Inc. (NYSE: STZ), a leading player in the beverage industry, is set to release its third-quarter earnings on Thursday, January 9, in the morning. The company’s sales performance this year has shown mixed results, with the Wine & Spirits segment struggling to match the strong performance of its beer division.
The stock has not fully rebounded from the dip following Constellation’s second-quarter results reported in early October, with recent weeks seeing a further decline. The shares are currently trading significantly below their 52-week average of $248.97, having dropped approximately 10% in just under a month. While the mixed sales results are likely to impact short-term stock performance, the long-term outlook remains optimistic.
Upcoming Q3 Report
On January 9, when the New York-based brewery announces its third-quarter results before the market opens, investors will be anticipating an adjusted earnings of $3.32 per share, reflecting a 4% increase compared to the same quarter last year. Q3 sales are projected to grow about 3% year-over-year, reaching approximately $2.54 billion.
In the previous quarter, sales rose around 3% year-over-year to $2.91 billion, with comparable sales also up by the same margin. Adjusted comparable earnings increased by 14% year-over-year, amounting to $4.32 per share for the August quarter. However, the company experienced a reported loss of $1.19 billion or $6.59 per share, a significant downturn compared to a profit of $690 million or $3.74 per share during the previous year. Despite this, revenue and earnings exceeded expectations, continuing a positive trend.
Mixed Performance Overview
Strong demand for its beer brands is driving Constellation’s sales growth, yet the company faces challenges from evolving consumer tastes and rising input costs. On a positive note, prudent capital allocation focused on share buybacks and dividend growth is favorable for shareholders.
Insights from Constellation Brands’ Q2 2025 earnings call:
“We are committed to managing the aspects within our control while advancing our cost-saving initiatives. This approach enables us to accelerate marketing investments towards our beer segment to enhance top-line growth. We remain confident in our growth trajectory, which continues to outperform our sector as we increase points of distribution in the U.S. and pursue our innovation agenda, leveraging favorable demographics, especially among our loyal Hispanic consumers.”
Future Guidance
Following a positive Q2, Constellation’s leadership projected net sales growth between 4% and 6% for the fiscal year 2025. The company anticipates full-year earnings per share to be between $4.05 and $4.25. For FY25, adjusted earnings are expected to range from $13.60 to $13.80 per share.
Over the past six months, Constellation Brands’ stock has seen a decline of approximately 14%. As of Tuesday, shares were trading just above $220, with a modest upward trend.
