Group 1 - Constellation Brands, Inc. (STZ) reported relatively weak fiscal Q3 results for the September-November period, although not as weak as anticipated [1] - The company focuses on identifying mispriced securities by understanding the drivers behind financials, often revealed through a DCF model valuation [1] Group 2 - The investment philosophy of the company encompasses a broad approach that does not limit itself to traditional value, dividend, or growth investing, but rather evaluates all prospects to determine risk-to-reward [1]

Group 1 - Constellation Brands, Inc. (STZ) reported relatively weak fiscal Q3 results for the September-November period, although not as weak as anticipated [1] - The company focuses on identifying mispriced securities by understanding the drivers behind financials, often revealed through a DCF model valuation [1] Group 2 - The investment philosophy of the company encompasses a broad approach that does not limit itself to traditional value, dividend, or growth investing, but rather evaluates all prospects to determine risk-to-reward [1]

Core Viewpoint - Constellation Brands is showing signs of recovery in early 2026 after a challenging 2025, with a notable rebound in stock performance and better-than-expected earnings results [2][6]. Financial Performance - In Q3 FY2026, Constellation reported net revenue of $2.22 billion, a decline of 10% year-over-year, but exceeded analysts' expectations by approximately $52 million [4]. - The company reported comparable earnings per share of $3.06, down about 6% from the previous year, yet significantly better than the consensus estimate of $2.63, which anticipated a 19% drop [4]. - The beer segment, which constitutes around 90% of revenue, experienced a sales drop of 1%, but this was an improvement compared to the broader beer industry, allowing Constellation to gain market share [5]. Market Dynamics - Despite a general weakness in the beer market, Constellation's beer business has consistently outperformed, leading the beer category in dollar share gains during Q1 and Q2 FY2026 [5]. - The operating margin for the beer segment increased by 10 basis points, indicating effective cost management amidst declining sales [5]. Investor Sentiment - Berkshire Hathaway has increased its stake in Constellation Brands, reflecting long-term confidence in the company's recovery potential despite the stock's previous downturn [6]. - As of January 8, 2026, Constellation shares have risen over 7% in the new year and have rebounded approximately 16% since hitting a low of around $128 in November 2025 [3].

Core Insights - Constellation Brands reported fiscal third-quarter results that exceeded Wall Street expectations, driven by strong performance in its beer business, leading to a 7% increase in shares intraday following the release [1] Financial Performance - The company posted comparable earnings of $3.06 per share, surpassing the analyst consensus of $2.65, and revenue increased to $2.22 billion, exceeding expectations of $2.17 billion [2] Market Position - Constellation's beer portfolio outperformed the broader alcohol market, with beer sales exceeding total beverage alcohol growth by nearly 0.5 percentage points and outpacing the overall beer category by approximately 1 percentage point in both dollar and volume sales across U.S. tracked channels [3] - The wine and spirits division also performed well, outpacing the higher-end U.S. wine segment in both dollar and volume sales [4] Future Guidance - The company reaffirmed its fiscal 2026 comparable earnings guidance of $11.30 to $11.60 per share, compared to analyst expectations of $11.47, and updated its reported earnings outlook to a range of $9.72 to $10.02 per share [5] - Constellation maintained its operating cash flow target of $2.5 billion to $2.6 billion and free cash flow target of $1.3 billion to $1.4 billion, having generated $2.1 billion in operating cash flow and $1.45 billion in free cash flow year to date [5]

Core Viewpoint - Constellation Brands reported third-quarter earnings that beat estimates, leading to a rise in its stock price despite facing several challenges in the market [1][2]. Financial Performance - Revenue decreased by 10% to $2.22 billion, primarily due to the sale of several wine brands last year, while organic sales only fell by 2% [2]. - The company's revenue exceeded estimates at $2.16 billion [2]. - Beer sales, which constitute the majority of the business, declined by 1%, but the company continued to gain market share in this category [3]. - Adjusted earnings per share fell by 6% to $3.06, surpassing estimates of $2.63 [3]. Market Position and Guidance - Constellation Brands reaffirmed its full-year guidance, projecting organic net sales to decline by 4%-6% and adjusted earnings per share to be between $11.30 and $11.60, down from $13.78 [5]. - The current market capitalization of Constellation Brands is $24 billion, with a current stock price of $147.10 [5]. Investor Sentiment - Despite the stock's short-term gains, long-term investors may find limited reasons for optimism, as the macroeconomic environment remains uncertain [6].

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 November 30, 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 logo.jpg CONSTELLATION BRANDS, INC. (Exact name of registrant as specified ...

Core Viewpoint - Constellation Brands reported better-than-expected third-quarter results, leading to a positive outlook for the company in 2026, as indicated by analyst Gerald Pascarelli [1][2]. Financial Performance - The third-quarter results showed revenue, operating income, and earnings per share all exceeding analyst estimates, contributing to a strong performance [2]. - Beer and wine operating income outperformed expectations, with beer depletions in the quarter being better than scanner results prior to the report [3]. Market Position and Future Outlook - Constellation Brands has gained relative market share despite a weak category backdrop, with brand health metrics remaining best in class [4]. - The company reiterated its full-year guidance, and the analyst views the quarter as a solid start to the calendar year, suggesting that fading headwinds and easier comparisons could drive shares higher in the future [3][4]. Stock Performance - Constellation Brands shares increased by 3.8% to $146.02, with a 52-week trading range of $126.45 to $207.90, although the stock has fallen 33.4% over the past year [4].

Group 1 - The article does not provide any specific content related to companies or industries [1]

About this content About Emily Jarvie Emily began her career as a political journalist for Australian Community Media in Hobart, Tasmania. After she relocated to Toronto, Canada, she reported on business, legal, and scientific developments in the emerging psychedelics sector before joining Proactive in 2022. She brings a strong journalism background with her work featured in newspapers, magazines, and digital publications across Australia, Europe, and North America, including The Examiner, The Advocate, ...

Core Viewpoint - Constellation Brands executives indicated that beer sales may continue to experience volatility and pressure due to economic uncertainty and high unemployment rates among Hispanic consumers, who represent the company's primary customer base [1] Group 1 - Economic uncertainty is impacting consumer behavior, particularly among Hispanic consumers [1] - High unemployment rates in the Hispanic community are contributing to the challenges faced by the company in maintaining beer sales [1]