10:47 AM EST, 01/06/2026 (MT Newswires) -- Constellation Brands ( STZ ) is expected to report fiscal third-quarter results lower than Needham previously estimated amid volume headwinds in the beer business.

The brokerage now forecasts the wine and beer company to report per-share earnings of $2.63 for the third quarter and revenue of $2.16 billion, in line with the current consensus on FactSet. Needham previously projected EPS of $2.75 and sales of $2.24 billion.

The firm's prior estimates embedded "too much optimism in beer," analysts led by Gerald Pascarelli wrote in a Tuesday client note. Needham's previous model was for shipment cases to "perfectly align" with the depletion rate, or the pace at which units are sold to end consumers.

The brokerage now anticipates Constellation's beer division to post a negative depletion rate of 5% for the quarter, compared with its prior estimate for a 4% decrease. Shipments are expected to move down by 3.5%, Pascarelli said.

The maker of Modelo and Corona is scheduled to report its latest quarterly results after markets close on Wednesday.

"Expectations are pretty muted for the quarter," according to Pascarelli. "Scanner volumes for the quarter were challenged, down (about) 4%, and we do not expect reported depletions to deviate far from those implied trends."

Needham expects Constellation to reiterate its full-year outlook on Wednesday.

"With shipment cases expected to broadly align with depletion cases in (the second half), this implies that shipment growth should outpace depletion growth," Pascarelli said.

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