Constellation Brands Inc Class A

President Trump announced a three-day pause on new 50% U.S. tariffs on roughly $20 billion of Canadian goods, saying a deal had been reached subject to finalization of documents. Magna International, Constellation Brands, and Canadian Pacific Kansas City are seen as the most direct beneficiaries if the pause hardens into a durable agreement. Magna, which posted Q2 FY26 sales of $11 billion and adjusted EPS of $1.86, would gain from lower auto tariffs cutting cross-border input costs. Constellation Brands, trading at $133.52 versus a $170.83 consensus target, would benefit from restored shelf access for U.S. alcohol producers. Canadian Pacific Kansas City, with Q2 FY26 revenue growth of 13% and an analyst target of $101.73, would see rail volumes recover as tariffs ease. If the paperwork stalls, the full 50% tariffs snap back, rerating all three stocks on the same negative headline.

Jim Cramer says a weak June jobs report triggered a rotation that pushed down shares of Johnson & Johnson, PepsiCo, Starbucks, Constellation Brands, and TJX Companies, creating a buying opportunity. On CNBC's Mad Money, he called the five stocks collateral damage from indiscriminate selling by large funds moving into AI winners. Johnson & Johnson and PepsiCo report earnings on July 15 and July 9, respectively, which Cramer sees as near-term tests. Starbucks is an accumulation play during its turnaround, Constellation's beer business is stabilizing, and TJX benefits as consumers trade down. Cramer stressed that the sell-off was driven by sector rotation, not company fundamentals.

Constellation Brands reported strong fixed cost leverage and robust gross margins in its beer segment during its first quarter 2027 earnings call, while navigating a volatile consumer environment. CEO Nicholas Fink noted that the quarter saw strong March sales followed by a slowdown due to rising gas prices, with a modest reacceleration in June as pressures eased and the World Cup provided a boost in on-premise settings. The company is seeing strong double-digit growth in its Corona non-alcoholic brand and is exploring further white space opportunities to expand participation across more consumer occasions. CFO Garth Hankinson highlighted that beer margins reached 39% driven by fixed overabsorption, cost savings, and favorable pricing net of mix, though increased marketing spend around major events is expected to impact operating margins in upcoming quarters. The company also acknowledged challenges with Modelo Especial and Corona Extra, with plans to refine its playbook to maintain and grow these scaled brands.

The 13 beverages, alcohol, and tobacco stocks tracked reported a strong Q1, with revenues beating analysts' consensus estimates by 4.9% on average, though next quarter's revenue guidance came in 3% below. Celsius led the group with revenue growth of 138% year on year to $782.6 million, exceeding expectations by 2.6%, but its stock fell 10.7% as investor hopes ran higher. Vita Coco delivered the biggest analyst estimate beat, with revenue up 37.3% to $179.8 million, topping forecasts by 20.5%, and its stock surged 28.3%. Boston Beer was the weakest performer, with revenue down 4.4% to $433.9 million and a significant miss on adjusted operating income and EPS, sending its stock down 22%. Constellation Brands reported revenue of $2.43 billion, down 3.3% but beating estimates by 1.6%, while PepsiCo posted revenue of $19.44 billion, up 8.5% and surpassing expectations by 2.9%.

Nike fell more than 3% premarket after reporting a 12% sales decline in Greater China, despite beating earnings and revenue estimates for its fiscal fourth quarter. Constellation Brands rose about 1.5% after posting first-quarter earnings of $3.43 per share, above the $3.20 consensus, with revenue also topping expectations and full-year guidance roughly in line. Shutterstock plunged more than 30% and Getty Images dropped 4% after Getty called off their proposed merger due to demands from a U.K. regulator. Alcoa declined 4% after announcing a $4.1 billion deal to acquire South32's bauxite, alumina and aluminum portfolio. ServiceNow gained more than 5% and Salesforce nearly 4% after Guggenheim upgraded both to buy, citing attractive valuations and dismissing AI as a threat. Bloom Energy jumped over 7.5% on an expanded partnership with Brookfield to finance power for AI infrastructure projects. Kroger slipped 2% after agreeing to acquire Giant Eagle for $1.65 billion. Sandisk tumbled 3.5% and Micron Technology fell about 2.5% on the first trading day of the third quarter, following more than tripling in the prior quarter.

Constellation Brands reported first-quarter adjusted earnings of $3.43 per share, beating the consensus estimate of $3.25, while revenue of $2.43 billion edged past expectations of $2.41 billion. The beer segment drove results with net sales up 2% to $2.28 billion and operating income also rising 2% to $891.4 million, though total company sales declined 3% year-over-year. Within the beer portfolio, Modelo Especial depletion volumes fell about 2% and Corona Extra dropped more than 5%, while Pacifico, Victoria, and Modelo Chelada grew 21%, 14%, and 6% respectively. The company reaffirmed its full-year adjusted earnings guidance of $11.20 to $11.90 per share, with the midpoint of $11.55 remaining below the analyst consensus of $11.74. Shares rose 2.4% in premarket trading following the results.

Constellation Brands reported fiscal first-quarter net sales of $2.43 billion, down from $2.52 billion a year earlier but above analyst expectations of $2.39 billion, while profit rose to $653.8 million from $516.1 million. The company, which imports Modelo and Corona beers, saw its Mexican beer portfolio drive most revenue, with demand from Hispanic customers beginning to rebound. Meanwhile, on-premise beer sales nationally rose 5.5% for the week ending June 20, which included the first 21 US-hosted World Cup matches, and climbed 15.4% in World Cup host markets, according to Beer Institute data shared with The Daily Upside. Constellation executives noted that a surge in gas prices may have pressured lower-income consumers, contributing to a deceleration in retail food and beverage volume trends as the quarter progressed.