Constellation Brands’ shares rose 6.9% after earnings as the company said Q2 results beat its expectations and September trends improved. It reiterated fiscal 2027 comparable EPS guidance of $11.20–$11.90 and said continued positive September trends would put it at the high end.
- Management cited the beer business’s quarter-on-quarter acceleration and said Constellation was the #1 dollar share gainer in beverage alcohol this quarter.
- September acceleration was not solely due to Labor Day timing; management pointed to a healthy response to college football and other programming.
- Distributor inventories have been rebuilt from low levels but remain below historical averages. The company expects full-year shipments and depletions to track within 99% of each other.
- Management said it would take a real reversal in trends to consider the low end of guidance, while emphasizing that its forecast remains prudent.
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