Core Insights - Constellation Brands reported fiscal first-quarter results that did not meet analysts' expectations, indicating weak consumer demand as a significant factor [1][2] - The company generated revenue of $2.52 billion, a decrease of 6% year-over-year, and adjusted earnings fell to $572.9 million, or $3.22 per share, down from $654.5 million, or $3.57 per share, in the same quarter last year [1][2] Financial Performance - Revenue for the quarter was $2.52 billion, slightly below analyst consensus [1] - Adjusted earnings were $572.9 million, or $3.22 per share, which also fell short of estimates [1] - The company maintained its full-year earnings estimate of $12.60 to $12.90 per share, with Wall Street analysts expecting $12.84 [2] Market Reaction - Following the earnings report, Constellation's shares declined by less than 1% in extended trading [2] - The stock has experienced a nearly 25% decline in value throughout 2025 up to the close of Tuesday [2]

Core Viewpoint - Constellation Brands reported quarterly earnings and revenue that fell short of analysts' expectations, primarily due to the impact of tariffs on aluminum, yet the company remains confident in its fiscal 2026 forecast despite these challenges [1][2]. Financial Performance - The company reported a fiscal first-quarter net income of $516.1 million, or $2.90 per share, a decrease from $877 million, or $4.78 per share, a year earlier [3]. - Adjusted earnings per share were $3.22, slightly below the expected $3.31, while net sales dropped 5.8% to $2.52 billion, compared to the expected $2.55 billion [6]. Impact of Tariffs - The report reflects the beginning of President Trump's tariffs on canned beer imports in early April, alongside increased trade duties on aluminum, which rose to 25% in mid-March and 50% in early June [4]. - Both imported beer and aluminum are vital to Constellation's beer business, which constitutes approximately 80% of the company's overall revenue [5]. Market Reaction - Following the earnings report, shares of Constellation Brands fell more than 1% in extended trading, with the stock having lost over 20% of its value this year due to concerns regarding the impact of higher tariffs on beer demand [2].

Company Continues to Proactively Address Consumer Demand Headwinds Largely Driven By the Current Socioeconomic Environment Through Consistent Execution of Strategic Objectives Beer Business Continues to Deliver Leading Share Gains in Category Across U.S. Tracked Channels as Incremental Marketing Investments Support Strong Brand Health Wine and Spirits Business Fully Focused on Higher-End Brands With Higher-Growth and Higher-Margins Following the Wine Divestiture Transaction That Closed in June Exhibit 99.1 ...

Core Insights - Constellation Brands, Inc. reported its first quarter fiscal 2026 financial results, with a conference call scheduled for July 2, 2025, to discuss these results and future outlook [1] 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 [2] - The company's mission focuses on building beloved brands and enhancing human connections, which drives its growth as one of the fastest-growing large consumer packaged goods companies in the U.S. [2] Product Portfolio - The company offers a diverse range of products, including high-end imported beers like Corona Extra and Modelo Especial, a variety of wines such as The Prisoner Wine Company and Robert Mondavi Winery, and craft spirits like Casa Noble Tequila and High West Whiskey [3] Sustainability and ESG Strategy - Constellation Brands emphasizes sustainable and responsible operations, integrating its Environmental, Social, and Governance (ESG) strategy into its business practices [4] - The company aims to be a good steward of the environment, invest in communities, and promote responsible alcohol consumption, aligning these goals with its long-term business strategy [4]

Core Viewpoint - Constellation Brands, Inc. is expected to report declines in both revenue and earnings for the first quarter of fiscal 2026, with earnings estimated at $3.34 per share, reflecting a 6.4% decrease year-over-year, and revenues projected at $2.6 billion, indicating a 3.5% decline from the previous year [1][2]. Financial Performance Expectations - The Zacks Consensus Estimate for earnings per share is $3.34, down 6.4% from the same quarter last year, with a 1.5% downward revision in the past week [2] - Revenue expectations are set at $2.6 billion, which is a 3.5% decline compared to the prior-year quarter [2] - The company experienced a negative earnings surprise of 15.4% in the last reported quarter, but has historically beaten estimates by an average of 5.2% over the last four quarters [2] Earnings Prediction Model - The current model does not predict an earnings beat for Constellation Brands, with an Earnings ESP of -1.64% and a Zacks Rank of 3 (Hold) [3] Segment Performance Insights - The beer segment is expected to show resilience, benefiting from cost-saving measures and efficiency initiatives, with growth driven by brands like Modelo Especial and Corona Extra [4] - The wine and spirits segment returned to growth in the fourth quarter of fiscal 2025, with expected sales growth supported by increased shipment volumes and a favorable product mix [5] - Premiumization strategies and capacity expansion in Mexico are contributing positively to the beer segment's performance [6] Market Environment and Challenges - The company faces inflationary pressures, including higher packaging and raw material costs, which are impacting margins [7] - The operating environment is challenging due to cautious consumer spending and potential tariff changes, which may further affect profitability [8] Valuation Perspective - Constellation Brands is trading at a forward price-to-earnings ratio of 12.38X, which is below its five-year high of 23.57X and the industry average of 15.27X, indicating an attractive investment opportunity [9][10] - The stock has declined by 37.1% over the past year, compared to an 8.8% decline in the industry [11]

Market Overview - The market has recovered most of its losses from earlier in the quarter, finishing strong despite initial turbulence caused by President Trump's trade policies [1][2] - The upcoming week is expected to be shortened, following a quarter that started poorly but ended on a high note, emphasizing the importance of maintaining a steady investment approach [2] Company Insights - Constellation Brands is expected to report disappointing earnings, reflecting broader challenges in the consumer packaged goods sector [4] - The company faces headwinds from the rise of GLP-1 weight loss drugs and increasing consumer preference for cannabis, which are negatively impacting alcohol sales [4] - Constellation Brands' sales are particularly affected by Trump's immigration policies, as approximately half of its beer sales come from Hispanic consumers who are now spending less due to concerns over employment [4] Economic Indicators - The Chicago Purchasing Managers' Index will be released, serving as a key indicator of the industrial economy's health, with potential implications for Federal Reserve interest rate decisions [3] - Mortgage application figures are anticipated, which have been described as a significant burden on the economy [5] - The labor report set to be released on Thursday is critical; weak data could lead to renewed criticism of Fed Chair Jerome Powell and raise the possibility of a rate cut in July [5]

Core Insights - Constellation Brands Inc.'s wine & spirits business showed a solid rebound in Q4 FY25, with segment sales increasing by 5% year over year and organic sales growing by 11% driven by a 15.7% rise in organic shipment volume [1][8] - The company is divesting lower-end wine brands to The Wine Group as part of its premiumization strategy, which is expected to enhance brand equity and focus on high-end offerings [2][4] - A broad organizational restructuring is anticipated to yield over $200 million in annualized cost savings by FY28, primarily realized in FY26, which will support margin expansion and long-term growth [3][4] Financial Performance - The current forward 12-month price-to-earnings (P/E) multiple for Constellation Brands is 12.34X, which is below the industry average of 15.35X and the sector average of 17.37X [5] - The company's shares have declined by 12.2% over the past three months, contrasting with a modest 1.1% decline in the industry [6]

Core Insights - Constellation Brands, Inc. (STZ) is a significant player in the alcoholic beverage industry, focusing on premiumization, brand strength, and portfolio optimization as key growth strategies [1][4] - The company has a diverse portfolio of leading brands, including Modelo Especial, Corona Extra, and Robert Mondavi Winery, positioning it well to meet changing consumer preferences [1] Beer Segment - STZ is concentrating on high-performing core brands in the beer category, which constitutes approximately 83% of total sales [2] - The company is benefiting from favorable trends in the U.S. beer market, particularly the increasing demand for Mexican imports and premium beers, with Modelo being the top-selling beer in the U.S. [2] - For fiscal 2026, STZ anticipates sales growth of 0-3% in the beer segment [2][10] Wine and Spirits Segment - The wine and spirits portfolio is shifting towards higher-end offerings, with brands like The Prisoner and Kim Crawford driving growth [3] - STZ is investing in innovation and omnichannel capabilities to engage younger consumers, while divesting lower-performing assets to enhance margins [3] Competitive Landscape - A comparison with peers such as Anheuser-Busch InBev (BUD), Boston Beer Company (SAM), and Molson Coors (TAP) reveals a focus on premiumization and brand development across the industry [5] - BUD is leveraging consumer demand for its premium beer offerings, while SAM is diversifying into "Beyond Beer" products [6][7] - Molson Coors is also pursuing growth through innovation and premiumization strategies [8] Financial Performance - STZ's forward price-to-earnings ratio is 12.34X, lower than the industry average of 15.23X, indicating potential valuation opportunities [11] - The Zacks Consensus Estimate for STZ's fiscal 2026 earnings suggests a year-over-year decline of 7.9%, with a projected growth of 8.5% for fiscal 2027 [12]

Core Viewpoint - Constellation Brands is expected to report a decline in quarterly earnings and revenues, indicating potential challenges in its business performance [1][2]. Earnings Estimates - Analysts predict quarterly earnings of $3.37 per share, a decrease of 5.6% year-over-year [1]. - Revenue is forecasted at $2.57 billion, reflecting a year-over-year decrease of 3.4% [1]. - The consensus EPS estimate has been revised down by 0.5% in the last 30 days [2]. Key Metrics - Estimated 'Net Sales- Wine and Spirits' is projected at $297.74 million, a significant decline of 23.5% year-over-year [5]. - 'Net Sales- Beer' is expected to reach $2.27 billion, showing a minimal decrease of 0.1% year-over-year [5]. - 'Operating Income- Wine and Spirits' is anticipated to be $12.38 million, down from $59.70 million in the same quarter last year [5]. - 'Operating Income- Beer' is projected at $899.70 million, compared to $941.60 million reported in the same quarter last year [6]. Stock Performance - Shares of Constellation Brands have decreased by 10.2% over the past month, contrasting with a 6% increase in the Zacks S&P 500 composite [7]. - The company holds a Zacks Rank 3 (Hold), suggesting it is expected to perform in line with the overall market in the near future [7].

Constellation Brands, Inc. STZ will release earnings results for the first quarter after the closing bell on Tuesday, July 1.Analysts expect the company to report quarterly earnings at $3.29 per share, down from $3.57 per share in the year-ago period. Constellation Brands projects to report quarterly revenue at $2.56 billion, compared to $2.66 billion a year earlier, according to data from Benzinga Pro.On Thursday, Barclays analyst Lauren Lieberman maintained a Constellation Brands rating of Overweight and ...