Shares of Constellation Brands (STZ 0.65%) were gaining today after the domestic seller of Corona and Modelo beat estimates in its third-quarter earnings report.
As of 1:57 p.m. ET, the stock was up 4.7% on the news.
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Constellation tops a low bar
Constellation Brands has faced a number of headwinds recently, including weak discretionary spending, younger generations turning away from alcohol, and a slowdown among Hispanic customers.
Revenue fell 10% to $2.22 billion, but that was mostly due to the sale of a number of wine brands last year. Organic sales were down just 2%, and revenue topped estimates at $2.16 billion.
Beer sales, which make up the vast majority of the business, were down 1%, and the company said it continued to gain market share in the category.
On the bottom line, adjusted earnings per share declined 6% to $3.06, but that also beat estimates at $2.63.
CEO Bill Newlands said, "The operating environment during the third quarter of fiscal 2026 remained challenged, which was in line with our expectations and relatively consistent with the prior quarter."
NYSE: STZ
Key Data Points
What's next for Constellation Brands
Constellation Brands reaffirmed its full-year guidance, calling for organic net sales to fall 4%-6% and adjusted earnings per share of $11.30-$11.60, down from $13.78.
Despite the stock's gains today, there's not much to be excited about here for long-term investors. If you squint and imagine a world where the macro environment improves and Constellation returns to growth, there's an argument that the stock is a value play, but that's a big "if" at this point.
