Constellation Brands (STZ) is poised to release its second-quarter fiscal 2026 earnings after market hours on October 6. Analysts predict significant declines in the company’s earnings and sales due to ongoing inflationary pressures affecting consumer spending habits.
Projected Earnings and Sales Decline
Market expectations indicate a 21.8% year-over-year decrease in adjusted earnings, with projections set at $3.38 per share. Sales are forecasted to fall 15%, reaching approximately $2.48 billion compared to the same quarter last year.
Analyst Insights Ahead of Earnings Report
In September, Constellation Brands revised its fiscal 2026 earnings per share (EPS) outlook. The new range of $11.30 to $11.60 reflects a significant cut from the previous expectations of $12.60 to $12.90. Additionally, organic net sales are anticipated to decline between 4% and 6%, a contrast from earlier forecasts that predicted a potential 1% increase.
Analyst Ratings and Price Target Adjustments
- UBS analyst Peter Grom reduced his price target from $205 to $175, indicating a 23.1% upside potential. He noted that the upcoming results are unlikely to serve as a major catalyst.
- Goldman Sachs analyst Bonnie Herzog lowered hers from $196 to $168, reflecting an 18.1% upside potential amid declining alcohol consumption trends.
- Jefferies analyst Kaumil Gajrawala adjusted his target from $176 to $167, implying a 17.4% upside potential, considering several headwinds affecting demand.
Consensus Rating and Market Performance
Despite recent challenges, analysts maintain a cautiously optimistic perspective on Constellation Brands’ future. On TipRanks, the consensus rating for STZ stock is categorized as a Moderate Buy, based on 11 Buy, 8 Hold, and 2 Sell ratings. The average price target stands at $167.65, suggesting a potential upside of 17.9% from current valuations. Notably, the stock has declined by 34.5% year-to-date.
As investors consider the question, “Should you buy Constellation Brands (STZ) before the earnings report?” it is essential to weigh both the current pressures and potential future growth signals.
