Constellation Brands (NYSE:STZ) reported stronger-than-expected second-quarter earnings, driven by the continued success of its beer division, which outpaced the broader beverage market. However, following the announcement, the company's shares saw a more than 2% drop intra-day today. The company posted adjusted EPS of $4.32, exceeding Street expectations of $4.08. Revenue for the quarter reached $3.14 billion, beating the anticipated $2.95 billion and showing year-over-year growth. Constellation’s beer segment, featuring popular brands like Corona and Modelo, showed robust performance with mid-single-digit sales growth and a strong increase in operating income. The division also recorded double-digit growth in operating margin, outpacing the overall beverage industry. Looking ahead, the company reaffirmed its previous guidance for comparable EPS in fiscal 2025, ranging from $13.60 to $13.80, in line with Wall Street expectations of $13.69. However, Constellation adjusted its reported EPS forecast to $4.05 to $4.25, reflecting a non-cash goodwill impairment charge of $2.25 billion related to its Wine and Spirits segment. The company also maintained its fiscal 2025 projections for operating cash flow at $2.8 to $3.0 billion and free cash flow at $1.4 to $1.5 billion.