Constellation Brands (STZ) drops 7% premarket after Q2 beat offset by weak Modelo/Corona depletions; acquires SpikedAde for $75M
What happened
Constellation Brands reported fiscal Q2 revenue of $2.63 billion (+6% YoY) and comparable EPS of $3.74, both beating analyst estimates. But beer depletions — shipments to retailers, a key demand gauge — declined for flagship brands Modelo Especial and Corona Extra, spooking investors. Shares tumbled 7% in premarket trading to their lowest since early 2020 (Barron's later put the move at -4.9%). Separately, the company announced it will acquire SpikedAde, a canned vodka beverage brand, for $75 million upfront plus up to $278 million in additional sales-based payments.
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Start your free 14-day trialWho’s affected
- Constellation Brands (STZ) directly; peer beverage/alcohol names exposed to the same consumer-demand read-through (Molson Coors, Anheuser-Busch InBev via U.S. import-beer market, Diageo/Brown-Forman in spirits).