Constellation Brands reported weaker-than-expected earnings, fueling concerns over softening alcohol demand. For the quarter ending in May, the company posted $2.52 billion in organic net sales and $3.22 in earnings per share, both slightly below analyst expectations.
The beer segment, which includes six of the top 15 beer brands by dollar share in the U.S., saw sales dip 2% due to a 3.3% decline in shipment volume. Still, the company expects beer revenue to grow by up to 3% this year.
Its wine and spirits division suffered more, with revenue plunging 28% year-over-year due to both restructuring and weaker consumer demand. The company has cut guidance for the segment, citing sluggish sales and the divestiture of lower-end brands.
Despite the downbeat numbers, STZ stock fell just 0.7% in after-hours trading. It’s already down over 26% this year, and nearly 40% from its March peak. But some institutional investors are seeing value. Berkshire Hathaway, for instance, more than doubled its holdings in Q1 2025, now owning 6.7% of the company.
Historical trends show that even when Constellation misses estimates by up to 10%, the stock has tended to bounce back modestly. On average, it returned 1.3% over the next 20 days and 0.13% over 10 days—suggesting that while the short-term reaction can be negative, it often recovers relatively quickly.
- Mean: +0.13%
- 25th percentile: -2.68%
- 75th percentile: +2.82%
- Mean: +1.30%
- 25th percentile: -4.15%
- 75th percentile: +9.09%
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