Given the mixed updates from consumer-facing companies in recent weeks, with many reporting a decline in sales among lower-income shoppers, there is growing interest in US drinks group Constellation Brands’ (STZ:NYSE) first-quarter trading statement on 3 July.

The firm, which owns several wine and spirits brands but it better known for importing specialist beers such as Corona, Modelo and Pacifico, is seen reporting beer shipments up 7% on last year for the three months to May.

EPS (earnings per share) are seen at $3.46 against $2.26 in the three months to February and $2.91 in the same period a year ago.

However, analysts have been lowering their forecasts and price targets in recent weeks and the team at Morgan Stanley believe the company will miss forecasts due to lower beer volumes and weaker margins, although they expect it to maintain its full-year earnings guidance.

While acknowledging ‘potentially lingering weaker consumer spending on beverages and the beer segment and difficult upcoming summer comparisons’, and cutting their shipment outlook, the analysts rate the shares a long-term buy.

Constellation Brands shares are up 9% year-to-date which is behind the 15% gain for the S&P 500 index but well ahead of many of the firm’s rivals in the global beer sector such as AB Inbev (BUD:NYSE), Heineken (HEIA:AMS) and Molson-Coors (TAP:NYSE).

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