STZ Stock Drops After-Hours On Disappointing FY27 Guidance — Retail Stays Optimistic For Impending Rally

• Sales of both the company’s beer, and wine and spirits segments are expected to be down 1% to up 1% in FY27.
• Constellation cited the dynamic operating environment as a concern behind the disappointing outlook. 
• For Q4, the company reported earnings per share of $1.16, compared to the loss of $2.09 reported in the corresponding quarter of last year.

Shares of Constellation Brands, Inc. (STZ) fell 2% in extended trading on Wednesday after the company’s guidance for fiscal year 2027 disappointed investors.

The company now sees comparable FY27 earnings per share of $11.20-$11.90, below Wall Street estimates of $12.36, according to data from Fiscal.ai. Sales of both the company’s beer, and wine and spirits segments are expected to be down 1% to up 1%.

“Looking ahead to fiscal 2027, while we are encouraged by the momentum displayed during the fourth quarter across our Beer and Wine & Spirits businesses, we expect the operating environment to remain dynamic given the evolving socioeconomic backdrop and limited near-term visibility,” the company said.

Q4 Earnings Snapshot

For the fourth quarter (Q4), the company reported earnings per share of $1.16, compared to the loss of $2.09 reported in the corresponding quarter of last year. Adjusted earnings came in at $1.90, above an analyst estimate of $1.7.

Net sales for the quarter, however, slid 11% and came in at $1.92 billion, though above an estimated $1.86 billion. The drop in sales was primarily due to a 58% dip in wine and spirits sales driven by lower shipments, the company said.

“U.S. consumers, particularly those within lower-income households, continued to face financial pressures from the cumulative effects of inflation, along with ongoing broader economic uncertainty and additional headwinds from other socioeconomic factors. As a result, spending behavior across beverage alcohol categories became more deliberate, with consumers increasingly seeking value and exhibiting greater selectivity in their purchases,” the company said. “Overall demand across beer, wine, and spirits however remained subdued during much of the year.”

How Did Retail Traders React?

On Stocktwits, retail sentiment around STZ stock stayed within the ‘extremely bullish’ territory, while message volume rose from ‘high’ to ‘extremely high’ levels.

A Stocktwits user expressed optimism for a rally on Thursday.

Another dismissed the company as overvalued.

STZ stock has fallen 12% over the past 12 months. 

Read More: Why Did STAA Stock Surge More Than 19% After-Hours Today?

For updates and corrections, email newsroom[at]stocktwits[dot]com.