Overview
- Constellation Brands, which reported results Wednesday, beat expectations with adjusted Q4 EPS of $1.90 on $1.92 billion in revenue.
- The company forecast fiscal 2027 adjusted EPS of $11.20 to $11.90, below Wall Street estimates, and pulled its previously issued fiscal 2028 targets due to an uncertain environment.
- Beer posted slight growth with Q4 sales of about $1.73 billion and shipments up 1.1%, while wine and spirits fell 58% to $194.2 million as divestitures, distributor changes, and pricing actions cut volumes.
- Nicholas Fink takes over as CEO on April 13 as Bill Newlands moves to a strategic advisor role, and the company is pursuing an organizational review targeting more than $200 million in annual cost savings by fiscal 2028.
- On Thursday’s call, executives set beer operating margin guidance at 37% to 38% due to Veracruz brewery ramp costs and higher marketing, and said they will rebalance wine and spirits distributor inventories through the year.