Constellation Brands (NASDAQ: STZ) delivered an earnings report that showed a solid beat on the top and bottom lines. However, the company's weak forward guidance confirms that consumers are cutting back on discretionary purchases such as alcoholic beverages. The stock briefly rallied toward $120 on Wednesday morning before giving back most of the gain.
First, the good news. The company behind the Modelo and Corona brands delivered strong headline numbers in its second-quarter earnings report for its fiscal year 2027 (FY2027). Revenue of $2.63 billion topped estimates of $2.54 billion and was 6% higher year over year. That's a meaningful turnaround from the first quarter, when net sales fell 3.3% year over year.
