Constellation Brands, Inc. (NYSE: STZ) Fiscal Q1 2025 Earnings Overview

• The earnings per share (EPS) and revenue for Constellation Brands in the fiscal first quarter of 2025 missed analysts' expectations, with an EPS of $3.22 and revenue of $2.52 billion.
• Despite challenges such as increased aluminum tariffs impacting demand, the company maintains its full-year earnings forecast of $12.60 to $12.90 per share.

Constellation Brands, Inc. (NYSE:STZ) is a prominent player in the Beverages - Alcohol industry, known for its popular brands like Corona and Modelo. The company recently reported its fiscal first-quarter results for 2025, which did not meet analysts' expectations. The earnings per share (EPS) came in at $3.22, slightly below the estimated $3.31, and the revenue was approximately $2.52 billion, missing the forecasted $2.55 billion.

The reported EPS of $3.22 also fell short of the Zacks Consensus Estimate of $3.34, marking a decline from the $3.57 per share reported in the same quarter last year. This resulted in an earnings surprise of -3.59%. In contrast, the previous quarter saw a positive surprise of 15.35% with earnings of $2.63 per share against an anticipated $2.28. Over the past four quarters, Constellation Brands has surpassed consensus EPS estimates twice.

Revenue for the quarter ending May 2025 was $2.52 billion, which was 2.07% below the Zacks Consensus Estimate and a 6% decrease from the $2.66 billion reported a year ago. The decline in sales is attributed to weaker consumer demand, as highlighted by CEO Bill Newlands, who pointed to non-structural socioeconomic factors. Despite these challenges, Constellation Brands maintained its full-year earnings forecast of $12.60 to $12.90 per share, with Wall Street analysts predicting $12.84.

The company's profitability has been impacted by increased aluminum tariffs, which have raised concerns about the demand for its beer. The tariffs on canned beer imports and aluminum, which were raised to 25% in mid-March and further to 50% in early June, have posed significant challenges. Despite these setbacks, Constellation Brands remains optimistic about its future, reiterating its forecast for fiscal 2026.

Financially, Constellation Brands has a price-to-sales ratio of approximately 2.88 and an enterprise value to sales ratio of about 4.06. The enterprise value to operating cash flow ratio is around 13.16, and the debt-to-equity ratio is approximately 1.76, indicating a higher level of debt compared to equity. The current ratio is about 0.92, suggesting slightly less current assets than current liabilities.