Can Constellation Brands Deliver In Its Next Earnings Report?

Company Overview - Constellation Brands Inc. is primarily recognized for its beer brands, including Modelo Especial, Corona Extra, and Pacifico, and is set to report its fiscal Q1 earnings on July 2, 2025 [2] - The company has a current market capitalization of $30 billion, with total revenue over the past twelve months amounting to $10 billion [3] Financial Performance - Analysts project an EPS of $3.33 and revenue of $2.56 billion for the upcoming earnings report, reflecting a 31% decline in earnings and a 4% decrease in sales compared to the previous year [2] - In the fiscal year ending February 28, beer accounted for 84% of sales, totaling $8.5 billion, with a 40% operating margin, significantly higher than that of wine and spirits [3] - The fourth quarter saw a modest sales increase of 1% to $2.2 billion, while cost reductions led to a 6% rise in operating income [3] - The company has revised its medium-term revenue growth forecast down to 2%-4%, from a previous estimate of 6%-8% [3] Market Dynamics - More than 98% of Constellation Brands' sales are generated in the U.S., indicating potential vulnerability to emerging tariffs that could pressure margins or reduce demand [3] - The company reported operating profits of $350 million and a net income of -$81 million over the past year [3]