Constellation Brands: Beer Growth and Buybacks Mask Stock’s Slump

Constellation Brands reported mixed Q1 FY2027 results with revenue beating expectations but EPS missing. Despite raising full-year guidance with 23% YOY EPS growth and returning $400M to shareholders through buybacks and dividends, the stock remains near multi-year lows at $130, trading 29% below analyst targets. The beer segment showed resilience with 2% net sales growth, while wine and spirits improved significantly. Management's new occasion-based growth strategy and strong brand positioning in Modelo and Corona suggest the market hasn't fully priced in operational improvements.