This week we spin through what to expect from US beverage giant Constellation Brands (STZ) and energy major Shell (SHEL).
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Constellation Brands (STZ)
Beer, wine and spirits producer Constellation Brands (STZ) uncorks Q4 and FY26 earnings after the US market close on 8 April. Given the tough backdrop for alcoholic beverages, shareholders will be relieved if the Corona Extra-to-Modelo Especial beer and Casa Noble tequila maker meets guidance.
Wall Street analysts are calling for Q4 EPS (earnings per share) of $1.68 on $1.84 billion of revenue. Constellation Brands has previously guided for FY26 EPS in the $11.30 to $11.60 range. Long-suffering investors will be also hoping for a constructive update on Constellation’s cost savings and restructuring initiatives from CFO Garth Hankinson.
| Revenue ($bn) | EPS (c) | |
| Q4 estimate | 1.84 | 1.68 |
| Q3 result | 2.22 | 3.06 |
| Q2 result | 2.48 | 3.63 |
Source: Investing.com
Back in January, Constellation’s downbeat Q3 results revealed a 10% decline in organic sales to $2.2 billion and an 18% slump in net income to $503 million. The challenges facing Nicholas Fink, who succeeds Bill Newlands as CEO later this month, range from tariffs and tighter alcohol regulation to the impact of weight-loss drugs on the alcoholic drinks sector. Worryingly for Constellation and its peers, younger consumers appear to be shunning the hard stuff.
Shell (SHEL)
Energy group Shell (SHEL) is due to publish its Q1 trading update on Wednesday 8 April, ahead of the results themselves on 7 May. Given the spoike in oil and gas prices since the Iran war, we would expect guidance to be positive.
It won’t all be good news, however, as Shell has crude assets, refineries and LNG terminals in the Gulf. Fortunately, not all of them are on or use the Strait of Hormuz, but an update wouldn’t go amiss.
CEO Wael Sawan made it his mission to ‘deliver more with less emissions’, and Shell is already ahead of plan. Costs are down, capex is controlled and free cash flow is rising, meaning more shareholder distributions.
Sawal says a payout of 40% to 50% of cash flow from operations reamains ‘sacrosanct’. Last year he delivered at the top end of that range, and he has kept the buyback this year.
Shell profits by segment based on company-compiled consensus
| EARNINGS ($M) | FY26E | FY27E |
| Integrated Gas | 7,300 | 8,016 |
| Upstream | 5,902 | 6,813 |
| Marketing | 4,709 | 4,827 |
| Chemicals & Products | 1,685 | 1,872 |
| Renewables | 222 | 397 |
| TOTAL | 19,818 | 21,925 |
Note: Consensus based on FY26 Brent crude price of $63.6/BoE and FY27 price of $67.6/BoE
