Constellation Brands Revises Fiscal 2025 Earnings Forecast, Shares Rise 3%

Constellation Brands (NYSE:STZ) shares rose more than 3% intra-day today after the company updated its fiscal 2025 earnings outlook, slightly adjusting its expectations for comparable earnings per share (EPS).

The company now projects full-year EPS to fall between $13.60 and $13.80, slightly narrowing the range from its previous estimate of $13.50 to $13.80. This updated guidance aligns closely with analysts' expectations of $13.68.

In a slight downgrade, Constellation Brands revised its net sales growth forecast to 4% to 6%, down from the earlier anticipated range of 6% to 7%.

Despite these adjustments, the company maintained its operating cash flow guidance, continuing to expect between $2.8 billion and $3.0 billion, which is consistent with the consensus estimate of $2.98 billion.

Additionally, Constellation Brands revealed plans to recognize a non-cash goodwill impairment loss for its Wine and Spirits segment, estimated to be between $1.5 billion and $2.5 billion. This impairment will be reflected in the company's second-quarter 2025 results and is factored into its updated EPS outlook for the year.