Constellation Brands' CEO is "cautiously optimistic" on the business having "hit the bottom" when it comes to macro pressures that have affected its sales in recent months. In a call yesterday (7 October) following the release of the group's second quarter results, Deutsche Bank analyst Chris Barnes asked the group to detail expectations for its second half of the fiscal year. While CEO Bill Newlands said he couldn't give any predictions, he noted the group had "seen unprecedented volatility, and there's ...

Core Insights - Constellation Brands, Inc. is facing challenges in the alcohol market, particularly due to the impact of GLP-1 drugs that reduce cravings for alcohol, affecting sales of its major brands like Corona and Modelo [1][2] - The company's stock has seen a decline, with a current valuation at 12 times earnings, which is noted as the lowest seen, although this multiple contraction is considered justified given recent performance [1] Company Overview - Constellation Brands produces and markets a variety of alcoholic beverages, including beer, wine, and spirits, under well-known brands such as Corona, Modelo, Robert Mondavi, Kim Crawford, and SVEDKA [2] - The company has been described as a "fallen idol" in the consumer packaged goods sector, reflecting broader issues within the alcohol industry [2] Market Context - The alcohol industry is currently experiencing a downturn, with Constellation Brands exemplifying the struggles faced by companies in this sector [2] - The introduction and popularity of GLP-1 drugs are significantly impacting consumer behavior, particularly in relation to alcohol consumption [2]

Investors have had to rely on secondary, independently produced data, along with remarks from monetary policymakers, to gauge the likelihood that the Federal Reserve will implement its second rate cut of the year at this month's policy meeting. "The New York Fed report probably gave traders an excuse to take some profits since the S&P had been up for seven days in a row," said Sam Stovall, chief investment strategist of Economically sensitive sectors, including homebuilding , housing, airlines, and transp ...

[Music] That's closing bell on Wall Street and now it's market domination overtime. We're giving you full coverage of all the moves to get you up to speed on the action from today's trade. Yahoo Fin's Jared Blickery joining us here to break it all down.Jared, >> thank you Josh. No record highs to speak of in the major indices, at least on a closing basis. on intraday one.We did hit a couple right after the open. Here's the Dow. We opened in the green territory, drifted into the red, pretty much stayed there ...

U.S. equities pulled back on Tuesday, October 7, 2025, as investors digested a mix of corporate news, ongoing political uncertainty, and a reappraisal of artificial intelligence (AI) sector valuations. After a robust seven-day winning streak that saw major indexes reach new all-time highs, the market experienced a broad retreat, with technology stocks leading the decline. Concerns over the protracted government shutdown and its potential impact on economic data further contributed to a cautious sentiment am ...

Core Insights - Constellation Brands Inc. reported quarterly earnings that exceeded Wall Street estimates despite a decline in beer sales [1][2] - The company posted second-quarter earnings of $3.63 per share, surpassing analyst expectations of $3.35 [1] - Revenue for the quarter fell 2% to $2.48 billion, slightly below the consensus forecast of $2.51 billion [1] Sales Performance - Beer sales dropped 7% year-over-year, attributed to an 8.7% decrease in shipment volumes as distributors reduced inventories and consumers cut back on spending [2] - The company reaffirmed its fiscal 2026 outlook, projecting overall earnings per share between $11.30 and $11.60 [2] Future Projections - Constellation Brands expects beer net sales to decline by 2–4% and beer operating income to decrease by 7–9% [2]

Core Insights - Constellation Brands, Inc. reported second-quarter fiscal 2026 results with both sales and earnings exceeding Zacks Consensus Estimates despite year-over-year declines due to weak consumer demand and socioeconomic challenges [1][2]. Financial Performance - Comparable earnings per share (EPS) were $3.63, a 16% decline year over year, but above the Zacks Consensus Estimate of $3.37. Reported EPS was $2.65 compared to a loss of $6.59 in the same quarter last year [2]. - Net sales decreased 15% year over year to $2.48 billion, surpassing the Zacks Consensus Estimate of $2.46 billion. Organic net sales fell 8% year over year [2]. - The stock price increased by 3.3% in after-market trading following the earnings release, reflecting better-than-expected performance [3]. Segment Performance - Beer segment sales declined 7% year over year to $2.35 billion, driven by an 8.7% drop in shipment volumes due to socioeconomic headwinds and distributor inventory rebalancing. Depletions fell 2.7%, with notable declines in Modelo Especial, Corona Extra, and Modelo Chelada brands, partially offset by growth in Pacifico and Victoria [4]. - Wine and spirits segment sales plummeted 65% year over year to $136 million, impacted by a 76.4% decline in shipment volumes due to divestitures and changes in distributor obligations, although depletions grew nearly 2% [5]. Margins and Operating Income - Comparable operating income was $886.2 million, down from $1,019.1 million in the prior-year quarter, attributed to weak performance in beer, wine, and spirits [6]. - Operating income for the beer segment fell 12% year over year to $951.6 million, with the operating margin contracting by 200 basis points to 40.6% due to higher costs and increased marketing expenses [7]. - The wine and spirits segment reported an operating loss of $19.8 million, a significant decline from an operating income of $70.5 million in the previous year, with margins affected by divestitures and contractual changes [8]. Financial Position and Cash Flow - As of August 31, 2025, cash and cash equivalents stood at $72 million, long-term debt was $9.8 billion, and total shareholders' equity was $7.5 billion. The company generated an operating cash flow of $1.5 billion and an adjusted free cash flow of $1.1 billion in Q2 FY26 [9]. - The company returned nearly $604 million to shareholders through buybacks and dividends, with a quarterly dividend of $1.02 per share announced [10]. Future Outlook - Constellation Brands forecasts operating cash flow of $2.5-$2.6 billion and free cash flow of $1.3-$1.4 billion for fiscal 2026, with planned capital expenditures of $1.2 billion [11]. - The company anticipates a decline in enterprise organic net sales of 4-6% and a decrease in beer segment net sales of 2-4%. The wine and spirits segment is expected to decline by 17-20% [12]. - Management projects a comparable EPS guidance of $11.30-$11.60 for fiscal 2026, with reported EPS expected to be $9.86-$10.16 [14].

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended August 31, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from_____________to_____________ Commission File Number: 001-08495 CONSTELLATION BRANDS, INC. (Exact name of registrant as specified in its char ...

The two biggest takeaways from Constellation Brands’ (NYSE:STZ) fiscal second quarter results were the impact on beer sales from a dwindling Hispanic market, and better than expected beer depletions. Otherwise, Constellation Brands’ (NYSE:STZ) “not as bad as feared” results fueled ...

Matthias Balk / picture alliance via Getty Images Ford was one of the worst-performing stocks in the S&P 500 at midday Tuesday Major U.S. equities indexes were lower at midday Tuesday after the benchmark S&P 500 and the tech-heavy Nasdaq hit new intraday records. Ford Motor (F) was one of the worst-performing stocks in the S&P 500, with shares down roughly 7%, following a report that a fire at a major aluminum supplier would affect production for months. Tesla (TSLA) shares, which jumped 5.5% yesterday a ...