Constellation Brands Q2 earnings beat expectations, Morgan Stanley warns of second‑half margin pressure
Constellation Brands reported second‑quarter earnings per share of $3.74, surpassing Morgan Stanley's estimate of $3.57. Beer shipments increased 5.5% while overall depletions slipped 0.6%, with Modelo Especial down 2% and Corona Extra down 5%. Morgan Stanley highlighted weak beer demand and flagged potential margin pressure in the second half of the year. The bank kept its price target at $158 and an equal‑weight rating on the stock.
Why it matters
Morgan Stanley expects margin pressure in the second half, which could curb profitability and affect the stock's performance. The firm maintains a $158 price target and an equal‑weight rating, signalling its current valuation stance.
Key facts
- 1Constellation Brands reported Q2 EPS of $3.74. tradingview.com
- 2Morgan Stanley's EPS estimate was $3.57. tradingview.com
- 3Beer shipments rose 5.5% in the quarter. tradingview.com
- 4Overall depletions fell 0.6% during the quarter. tradingview.com
- 5Modelo Especial depletions declined 2%. tradingview.com
- 6Corona Extra depletions declined 5%. tradingview.com
Summary written by AlphAI from 2 of 2 sources. Not investment advice. Figures are as stated by the linked sources.