Constellation Brands Inc. (NYSE:STZ) reported fiscal first-quarter results that topped Wall Street estimates after Tuesday’s market close and affirmed its full-year earnings outlook.

The Corona parent posted adjusted earnings of $3.43 per share, exceeding the consensus estimate of $3.21. Revenue rose to $2.43 billion, above analysts’ expectations of $2.39 billion.

Constellation reaffirmed its fiscal-year adjusted EPS guidance of $11.20 to $11.90, compared with the consensus estimate of $11.75.

Bank of America Lowers Price Forecast

Following the earnings report, Bank of America analyst Peter Galbo lowered his price forecast on Constellation Brands to $145 from $152 while maintaining an Underperform rating.

While improving profitability is a plus, the firm expects uncertain beer demand to keep the stock range-bound. Reflecting a strong first-quarter beat, the firm slightly lifted its fiscal 2027 EPS forecast to $11.70 (up from $11.57).

The analyst said the biggest unanswered question following earnings is whether beer depletions, a measure of consumer sales, will remain strong through the rest of the summer after a weak first quarter.

June sales improved, helped by the FIFA World Cup and New York Knicks celebrations in key Constellation markets. However, Galbo cautioned that demand could weaken if those temporary catalysts fade without broader consumer momentum.

Bank of America expects the company to reverse much of its first-quarter shipment build later in fiscal 2027, particularly in the third quarter. While that timing shift should have little effect on full-year beer sales estimates, it could weigh on quarterly growth comparisons.

The firm said profit and margin expectations now appear less risky after the earnings report. Still, it believes the stock is unlikely to break out until revenue growth improves.

Bank of America forecasts fiscal 2027 adjusted earnings of $11.70 per share, followed by $12.28 in fiscal 2028 and $13.16 in fiscal 2029. It expects beer operating margins to come under pressure in the second and third quarters because of higher marketing spending and selling, general and administrative expenses.

The analyst also reiterated concerns about soft beer industry demand, pressure on Constellation’s core Hispanic consumer base and slower long-term alcohol consumption trends, saying those factors continue to justify a discount in the stock’s valuation.

Constellation Brands Price Action

STZ Stock Price Activity: Constellation Brands shares were up 0.31% at $135.50 at the time of publication on Thursday, according to Benzinga Pro data.

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