Constellation Brands (STZ): A strong FQ2 beat, but FY27 guidance reaffirmed implying a weaker 2H although mgmt pointed to the upper end of its EPS range

STZ reported FQ2 EPS of $3.74 (+3.0% y/y), handily beating GS/FactSet consensus of $3.56/$3.55, driven by stronger-than-expected beer shipments (+5.5%) and better-than-feared beer operating margins of 39.0% (-160bps y/y), while beer depletions fell -0.6% and Wine & Spirits depletions rose +10.2%. Despite the beat, management maintained FY27 guidance (beer net sales -1% to +1%, comparable EPS $11.20-$11.90), implying a much weaker-than-expected 2H (beer net sales ~-4.8% and EPS ~-11.5% at the midpoint), though mgmt pointed to the high end of the EPS range if September's positive momentum continues. STZ also announced the $75M acquisition of SpikedAde, a vodka-based RTD, with up to $278M in contingent consideration. GS nudges FY27 EPS up to $11.85, lowers FY28/29 EPS to $12.26/$13.56, and cuts its price target by $25 to $155;