Modelo Maker Constellation Brands Bumps Up Its Outlook

Group 1 - Constellation Brands raised the lower end of its fiscal 2025 adjusted earnings per share (EPS) outlook to between $13.60 and $13.80, up from the previous range of $13.50 to $13.80 [2][3] - The company expects to recognize a non-cash goodwill impairment loss of $1.5 billion to $2.5 billion in its wine and spirits division for the fiscal second quarter ending August 31 [3][4] - The impairment is attributed to rising unemployment and a slowdown in consumer demand affecting the U.S. wholesale wine and spirits market, leading to declines in both the overall wine market and mainstream and premium wine brands [4] Group 2 - Constellation's non-adjusted EPS outlook was cut to between $3.05 and $7.92 from the previous forecast of $14.63 to $14.93 due to the impairment [4] - The stock of Constellation Brands increased by approximately 2.5% following the earnings outlook update, despite broader market declines [2][5]