Constellation Brands Rallies During After Market Hours – Here’s Why?

• The company's sales fell 10% to $2.22 billion for the quarter. However, it still beat analysts’ estimates of $2.17 billion.
• Constellation’s board of directors declared a quarterly cash dividend of $1.02 per share. 
• The company reported comparable diluted net income per share of $3.06, beating analyst estimates of $2.63 per share.

Shares of Constellation Brands (STZ) rallied in after-market hours on Wednesday after it reported third quarter profit that was above analyst estimates. 

The company said its beer business continues to outperform the industry, exceeding total beverage alcohol by nearly half a percentage point and the beer category by approximately 1 percentage point year-over-year.

The company reported comparable diluted net income per share of $3.06, beating analyst estimates of $2.63 per share, according to data from Fiscal.ai. 

“Our Beer Business delivered dollar and volume share gains in tracked channels and gained incremental distribution points, while our Wine and Spirit Business continued to outperform the U.S. wine industry. By focusing on factors within our control, we are confident that we are positioning the company for long-term success,” said Bill Newlands, President and Chief Executive Officer at Constellation Brands. 

Constellation’s board of directors declared a quarterly cash dividend of $1.02 per share of Class A Common Stock payable on February 12, 2026. 

Reaffirms FY26 Outlook

The company reaffirmed its comparable earnings outlook of $11.30 to $11.60 per share for the fiscal year 2026. Analysts on average expected $11.47 per share. 

It also maintained its cash flow target of $2.5 billion to $2.6 billion. 

Tariffs Continue To Pressure

"The operating environment during the third quarter of fiscal 2026 remained challenged, which was in line with our expectations and relatively consistent with the prior quarter,” Newlands said. 

U.S. President Donald Trump’s tariffs have been hurting beer companies who are seeing their margins erode due to 50% tariffs on aluminum cans. 

Constellation Brands’ comparable net sales fell 10% to $2.22 billion for the quarter compared to the same quarter a year ago. However, it still beat analysts’ estimates of $2.17 billion, as per data from Fiscal.ai.

How Did Stocktwits Users React?

Retail sentiment around STZ shares trended in ‘extremely bullish’ territory amid ‘high’ message volume. 

Shares of Constellation Brands have fallen 37% over the past year. 
 

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