Core Insights - Constellation Brands, Inc. announced the retirement of Jim Bourdeau as Chief Legal Officer effective February 28, 2026, after over 10 years with the company [1][2] - Jeff LaBarge will succeed Bourdeau as Executive Vice President and Chief Legal Officer starting March 1, 2026 [3][4] Leadership Transition - Jim Bourdeau has been a key figure in Constellation's senior leadership, contributing to the company's growth and transformation through his legal expertise and governance [2] - Bourdeau joined Constellation in September 2014 and has overseen significant M&A activities and corporate legal matters [2][5] - Jeff LaBarge, who joined Constellation in August 2016, has held various legal leadership roles and will now lead the legal and public affairs functions [4][5] Company Overview - Constellation Brands is a leading international producer and marketer of beer, wine, and spirits, with operations in the U.S., Mexico, New Zealand, and Italy [6] - The company focuses on building beloved brands and aims to be one of the fastest-growing large consumer packaged goods companies in the U.S. [6][8] - Constellation's product portfolio includes well-known brands such as Corona Extra, Modelo Especial, and various premium wines and spirits [7]

Core Insights - Constellation Brands is expected to report quarterly earnings of $3.37 per share, a decline of 22% year-over-year, with revenues forecasted at $2.46 billion, reflecting a 15.8% decrease compared to the previous year [1] - Analysts have revised their consensus EPS estimate down by 6.5% over the past 30 days, indicating a collective reassessment of the company's financial outlook [2] - The relationship between earnings estimate trends and short-term stock price movements is well-documented, highlighting the importance of these revisions for investor sentiment [3] Financial Metrics - Analysts project 'Net Sales- Wine and Spirits' to be $138.99 million, indicating a significant year-over-year decline of 64.2% [4] - 'Net Sales- Beer' is estimated at $2.33 billion, suggesting an 8% decrease year-over-year [5] - 'Operating Income- Wine and Spirits' is forecasted to be -$9.36 million, a stark contrast to the $70.50 million reported in the same quarter last year [5] - 'Operating Income- Beer' is expected to reach $911.22 million, down from $1.08 billion in the previous year [5] Market Performance - Over the past month, Constellation Brands' shares have declined by 11%, while the Zacks S&P 500 composite has increased by 3.5% [6] - The company currently holds a Zacks Rank 5 (Strong Sell), indicating potential underperformance relative to the overall market in the near future [6]

Core Insights - Constellation Brands, Inc. is set to release its second-quarter earnings results on October 6, with analysts expecting earnings of $3.41 per share, a decrease from $4.32 per share in the same period last year [1] - The company projects quarterly revenue of $2.48 billion, down from $2.92 billion a year earlier [1] Earnings Expectations - Analysts predict a decline in earnings per share from $4.32 to $3.41 year-over-year [1] - Revenue expectations for the quarter are projected at $2.48 billion, compared to $2.92 billion in the previous year [1] Analyst Ratings - Wells Fargo analyst Chris Carey has maintained an Overweight rating on Constellation Brands but has reduced the price target from $170 to $155 [2] - The company currently offers an annual dividend yield of 3.03%, translating to a semi-annual dividend of $1.02 per share, or $4.08 annually [2] Dividend Strategy - To achieve a monthly income of $500 from dividends, an investment of approximately $198,100 or around 1,471 shares is required [3] - For a more modest monthly income of $100, an investment of $39,593 or about 294 shares is necessary [3] Dividend Yield Calculation - The dividend yield is calculated by dividing the annual dividend payment by the stock's current price [4] - Changes in stock price directly affect the dividend yield; for instance, if the stock price increases, the yield decreases, and vice versa [4] Stock Performance - Constellation Brands' shares fell by 1.3%, closing at $134.67 [5]

Core Insights - Constellation Brands, Inc. is set to release its second-quarter earnings results on October 6, with analysts expecting earnings of $3.41 per share, a decrease from $4.32 per share in the same period last year [1] - The company projects quarterly revenue of $2.48 billion, down from $2.92 billion a year earlier [1][2] Financial Outlook - On September 2, Constellation Brands revised its fiscal year 2026 outlook downward due to macroeconomic challenges impacting consumer demand [2] - Following the outlook cut, Constellation shares experienced a decline of 1.3%, closing at $134.67 [2] Analyst Ratings - Wells Fargo analyst Chris Carey maintained an Overweight rating but reduced the price target from $170 to $155 [4] - Barclays analyst Lauren Lieberman downgraded the stock from Overweight to Equal-Weight, cutting the price target from $202 to $150 [4] - BMO Capital analyst Andrew Strelzik kept an Outperform rating while lowering the price target from $215 to $190 [4] - TD Cowen analyst Robert Moskow maintained a Hold rating and decreased the price target from $180 to $152 [4] - Morgan Stanley analyst Dar Mohsenian maintained an Equal-Weight rating, reducing the price target from $195 to $176 [4]

Core Insights - Constellation Brands, Inc. is facing significant challenges, including a 37% stock decline this year, contrasting with the S&P 500's 12% rise [1] - The company is set to release its quarterly earnings on October 6, 2025, with analysts predicting an EPS of $3.37 and revenue of approximately $2.48 billion, but a decline in earnings is expected for the quarter ending August 2025 [2][6] - Changing consumer habits, particularly among younger demographics, are impacting beer consumption, contributing to the company's financial challenges [4][6] Financial Metrics - Constellation Brands has a price-to-sales ratio of about 2.39, indicating investors are willing to pay $2.39 for every dollar of sales [5] - The enterprise value to sales ratio is approximately 3.53, and the enterprise value to operating cash flow ratio is around 11.47 [5] - The company's debt-to-equity ratio stands at about 1.59, suggesting a higher level of debt compared to equity [5][6] Market Impact - The upcoming earnings report could significantly impact STZ's stock price, with potential for a rise if expectations are exceeded, or a decline if they are not met [3]

Core Viewpoint - Constellation Brands (STZ) is anticipated to report a year-over-year decline in earnings and revenues for the quarter ended August 2025, which could significantly influence its stock price depending on the actual results compared to estimates [1][3]. Earnings Expectations - The upcoming earnings report is expected to show earnings of $3.37 per share, reflecting a 22% decrease year-over-year, with revenues projected at $2.46 billion, down 15.8% from the previous year [3]. - The consensus EPS estimate has been revised down by 6.46% over the last 30 days, indicating a reassessment by analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that the Most Accurate Estimate matches the Zacks Consensus Estimate, resulting in an Earnings ESP of 0%, suggesting no recent differing analyst views [12]. - The stock currently holds a Zacks Rank of 5, which complicates the prediction of an earnings beat [12][13]. Historical Performance - In the last reported quarter, Constellation Brands was expected to post earnings of $3.34 per share but delivered only $3.22, resulting in a surprise of -3.59% [14]. - Over the past four quarters, the company has beaten consensus EPS estimates twice [15]. Market Reaction Factors - An earnings beat or miss alone may not dictate stock movement, as other factors can influence investor sentiment [16]. - While betting on stocks expected to beat earnings can increase success odds, Constellation Brands does not currently appear to be a strong candidate for an earnings beat [18].

Core Thesis - Constellation Brands, Inc. (STZ) is viewed as a compelling investment opportunity due to its historically low valuation metrics, strong brand loyalty, and growth potential in the alcohol sector [1][3][6] Valuation Metrics - As of September 18th, STZ's share price was $133.02, with trailing and forward P/E ratios of 18.50 and 11.38 respectively [1] - The company's EV/EBIT multiple is around 10.5x, the lowest in its history, even below levels seen during the 2008/09 financial crisis [3] Brand Strength and Distribution - Constellation's competitive advantage lies in its strong brand portfolio, including iconic brands like Modelo, which foster generational loyalty [4] - The company's North American distribution network enhances its market position by controlling shelf space and tap handles, assets that are scarce and aggressively defended [4] Financial Performance and Growth Drivers - Despite short-term concerns regarding consumer spending and debt, the company has shown resilient margins and strong free cash flow, projected at $2.3 billion for FY2024 [5] - Growth is driven by Modelo surpassing Bud Light as the top beer in America, premiumization trends in the alcohol sector, and international expansion of Mexican beer brands [5] Intrinsic Value and Market Mispricing - A conservative valuation approach suggests an intrinsic equity value of approximately $36 billion, close to the current market capitalization of $42–43 billion [5] - Even modest growth could push intrinsic value above $50 billion, indicating a 20–25% margin of safety [6] Long-term Investment Outlook - The combination of durable brands, strong distribution, and global growth potential presents a favorable risk/reward scenario for long-term investors [6] - The company's strong moat, disciplined management, and reliable cash flow contribute to its attractiveness as a long-term investment opportunity [6]

Core Viewpoint - Constellation Brands, Inc. is facing challenges with high debt levels and margin pressures, despite strong consumer demand and premium pricing in its beer, wine, and spirits portfolio [2][4]. Company Profile - Constellation Brands is a leading player in the U.S. beer, wine, and spirits market, known for brands like Corona, Modelo, and Robert Mondavi [2]. - The company benefits from consistent consumer demand and premium pricing, particularly in the beer segment, which continues to show robust growth [2]. DCF Analysis - The DCF model uses a discount rate of 10% and a terminal growth rate of 3% [3]. - Forecasted free cash flows (in billions) are projected as follows: - 2025: $2.1 → PV: $1.91 - 2026: $2.2 → PV: $1.82 - 2027: $2.3 → PV: $1.74 - 2028: $2.4 → PV: $1.66 - 2029: $2.5 → PV: $1.59 - Total present value of free cash flows is $8.72 billion [3]. Terminal Value Calculation - The terminal value, calculated using the perpetuity growth model, is $36.79 billion [3]. - Present value of terminal value is $23.43 billion [3]. Enterprise Value - The enterprise value is calculated as $32.15 billion, combining the total present value of free cash flows and the present value of terminal value [3]. Net Debt and Equity Value - Constellation Brands has cash of $0.07 billion and total debt of $12.11 billion, resulting in net debt of $12.04 billion [4]. - The equity value is calculated to be $20.11 billion, with approximately 178 million shares outstanding, leading to an intrinsic value per share of approximately $113.00 [4]. Conclusion - The DCF value per share is estimated at $113.00, while the current market price is $133.04, indicating a margin of safety of -15% [4]. - The company continues to generate strong free cash flow from its beer business but faces challenges due to significant debt impacting equity value [4].

Core Viewpoint - Constellation Brands Inc. has lowered its fiscal 2026 outlook due to challenging macroeconomic conditions, impacting earnings and sales forecasts [1][2]. Financial Outlook - The company now expects comparable earnings per share to be between $11.30 and $11.60, a decrease from the previous guidance of $12.60 to $12.90 [1]. - Enterprise organic net sales are projected to decline by 4% to 6%, influenced by lower volumes and operating deleveraging [2]. - Free cash flow guidance has been reduced to between $1.3 billion and $1.4 billion, down from $1.5 billion to $1.6 billion [2]. Shareholder Commitment - Despite the lowered guidance, Constellation Brands has reaffirmed its commitment to shareholder value with a $4 billion stock repurchase program, having executed $604 million in buybacks in the first half of fiscal 2026 [3]. Market Trends - There has been a deceleration in high-end beer buy rates, particularly among Hispanic consumers, which has a significant impact on the company's Beer Business [4]. Company Overview - Constellation Brands Inc. is a major player in the production and marketing of beer, wine, and spirits, with notable brands such as Corona and Modelo, and is the largest importer and distributor of these beverages in the U.S. [5].

Core Insights - Anheuser-Busch InBev has regained the title of the bestselling beer in America with its Michelob ULTRA brand, surpassing Bud Light and Modelo Especial [1][2]. Group 1: Market Performance - Michelob ULTRA has become the number one beer in the retail sector over the past 52 weeks, according to Circana data, and also leads in bars and restaurants as per Nielsen data [4]. - Over the last five years, Michelob ULTRA has experienced a growth of 15% and gained over 2% of the beer market [5]. - Anheuser-Busch InBev's stock has increased by 18.4% year-to-date in 2025, recovering from previous losses related to Bud Light [11]. Group 2: Competitive Landscape - Constellation Brands' Modelo Especial has seen weaker demand recently, attributed to higher prices and economic concerns affecting Hispanic buyers, who represent about half of Constellation's beer business [8]. - Constellation has lowered its full-year guidance, expecting net beer sales to decline by 2% to 4% compared to earlier projections of flat to a 3% increase year-over-year [9]. Group 3: Marketing and Partnerships - Michelob ULTRA has engaged in partnerships with major sports leagues and events, including the NBA, WNBA, PGA Tour, and the upcoming 2026 FIFA World Cup, enhancing its visibility [3][6]. - The brand has also signed a multi-year partnership with Netflix for co-branded deals, which is expected to further increase consumer attention [7].