2026 Earnings Season Kicks Off: Constellation Brands

Core Viewpoint - Constellation Brands Inc is expected to report a decline in earnings and revenue for its fiscal third quarter, reflecting ongoing challenges in the wine and spirits industry [1] Financial Performance - Analysts predict earnings of $2.66 per share and revenue of $2.18 billion, marking a year-over-year decrease of 18.2% in earnings and 11.6% in revenue [1] - The company's previous results exceeded estimates despite a decline compared to the same quarter last year, leading to a fourth consecutive post-earnings gain for the stock [2] Stock Performance - The stock has rebounded slightly from a five-year low of $126.45, currently trading at $143.06, but remains down 35.8% year over year [3] - The stock has experienced an average earnings swing of 4.4% over the last two years, with options pricing in an 8.3% move for the upcoming earnings report [2] Market Sentiment - A positive reaction to the earnings report could trigger short covering, as short interest represents 7% of the stock's available float, although it has begun to unwind [5]