Constellation Brands Shares Slip On Q3 Earnings Miss: Retail's Cautious

Shares of beer and wine maker Constellation Brands rose slightly in the after-hours trading session on Friday after diving nearly 16% during the day after beer and wine maker missed revenue and EPS estimates and lowered outlook on annual sales and profit, with retail sentiment staying cautious.

The beverage maker's stock has come under pressure lately after U.S. Surgeon General Vivek Murthy issued an advisory linking cancer to alcohol consumption. The company also faces the threat of potential tariffs on Mexican goods likely under Donald Trump's presidency.

Constellation declared a quarterly cash dividend of $1.01 per share of Class A common stock, payable on February 21.

For the third-quarter, the company posted net sales of $2.46 billion, missing Wall Street estimate of $2.53 billion. Adjusted earnings per share came in at $3.25, below the consensus estimates of $3.31.

Constellation cut its forecast for fiscal year sales and profit, to the lower end of its fiscal-year prediction based on slowing growth expectations for sales and operating income.

It expects adjusted earnings per share to come in between $13.40 and $13.80 for the fiscal year, compared to its prior range of $13.60 to $13.80. It raised fiscal  2025 operating cash flow target to $2.9-$3.1billion and free cash flow  projections to  $1.6-$1.8 billion.

Sentiment on Stocktwits slipped further in the ‘neutral’ category. Message volumes were in the ‘normal’ zone compared to ‘high’ a week ago.
 

STZ sentiment meter and message volumes on Jan 12 as of 10:30 pm ET

One Stocktwits commenter flagged oncoming tariff concerns.

Constellation stock is down 17.87% year-to-date.

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