Constellation Brands Soars on Upbeat Q4 Earnings: ETFs in Focus

Constellation Brands STZ, the U.S. producer and marketer of beer, wine and spirits, reported fourth-quarter fiscal 2026 results that exceeded expectations on both revenues and earnings. However, overall performance declined year over year due to softer consumer demand trends.

The beer business remains one of the company’s primary growth drivers, per the management (as quoted on CNBC), though its overall net sales for fiscal 2026 dropped 3 Shares surged more than 8.5% following the earnings release.

Inside the Headlines

Comparable earnings per share (EPS) of $1.90 dropped 28% year over year in the fiscal fourth quarter but surpassed the Zacks Consensus Estimate of $1.74. On a reported basis, the company’s EPS was $1.16 against a loss of $2.09 reported in the year-earlier quarter.

Net sales declined 11% year over year to $1.920 billion but came above the Zacks Consensus Estimate of $1.896 billion. Organic net sales were flat year over year.

The beer business remained relatively resilient. Sales rose nearly 1% to $1.73 billion, driven by shipment growth and pricing gains. Sales in Wine & Spirits Segment, however, plunged 58% to $194.2 million.

Constellation Brands’ FY27 Expectations

Management remains cautiously optimistic, citing momentum in both segments. However, management acknowledged ongoing macroeconomic uncertainty and limited near-term visibility. As a result, the company has updated its FY27 outlook and withdrawn its earlier FY28 guidance.

For fiscal 2027, the company said it expects adjusted EPS of between $11.20 and $11.90 compared with Zacks Consensus Estimate of $12.36 per share.

“We do expect that we will return to growth and that the headwinds that we’re facing today are more cyclical in nature than they are structural,” CFO Garth Hankinson said on a call with analysts on Thursday, as quoted on CNBC.

Constellation-Heavy ETFs in Focus

STZ shares surged more than 8.5% on April 9, 2026 with almost double the regular volume. Below, we focus on exchange-traded funds (ETFs) that have decent exposure to STZ shares.

VanEck Morningstar Wide Moat Value ETF MVAL – Exposure of 4.41% to STZ

First Trust Nasdaq Food & Beverage ETF FTXG – Exposure of 4.05% to STZ; FTXG gained about 1.2% on April 9

Invesco S&P 500 Equal Weight Consumer Staples ETF RSPS – Exposure of 2.97% to STZ; RSPS rose more than 1% on April 9

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Constellation Brands Inc (STZ): Free Stock Analysis Report

First Trust NASDAQ Food & Beverage ETF (FTXG): ETF Research Reports

Invesco S&P 500 Equal Weight Consumer Staples ETF (RSPS): ETF Research Reports

VanEck Morningstar Wide Moat Value ETF (MVAL): ETF Research Reports

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research