Core Insights - Constellation Brands, Inc. (STZ) reported third-quarter fiscal 2026 results with sales and earnings exceeding Zacks Consensus Estimates, despite year-over-year declines due to weak consumer demand trends [1][10] Financial Performance - Comparable earnings per share (EPS) for Q3 were $3.06, a 6% decline year over year, but above the Zacks Consensus Estimate of $2.65. Reported EPS was $2.88 compared to $3.39 in the same quarter last year [1] - Net sales decreased by 10% year over year to $2.22 billion, surpassing the Zacks Consensus Estimate of $2.18 billion. Organic net sales fell by 2% year over year [2] - The beer business generated $2.01 billion in sales, down 1% year over year, with a 2.2% decline in shipment volumes, partially offset by favorable pricing. Depletions fell by 3% [4] - The wine and spirits segment saw a significant decline of 51% in sales to $213.1 million, driven by a 70.6% drop in shipment volumes due to divestitures and strategic pricing efforts [5] Margin Analysis - Comparable loss for the company was $46.9 million, compared to a loss of $9.2 million in the prior-year quarter, attributed to weak operating income across beer, wine, and spirits businesses [6] - Operating income for the beer segment decreased by 1% to $763.5 million, with an operating margin increase of 10 basis points to 38% [7] - The wine and spirits segment reported an operating income of $33.7 million, down 65% from the previous year, with an operating margin contraction to 15.8% [8] Financial Position - As of November 30, 2025, cash and cash equivalents stood at $152.4 million, long-term debt at $10.3 billion, and total shareholders' equity at $7.7 billion. The company generated an operating cash flow of $2.1 billion and adjusted free cash flow of $1.5 billion in the first nine months of fiscal 2026 [11] - The board announced a quarterly dividend of $1.02 per share, payable on November 13, 2026, with nearly $604 million returned to shareholders through share repurchases [12] Future Outlook - The company forecasts an operating cash flow of $2.5-$2.6 billion and adjusted free cash flow of $1.3-$1.4 billion for fiscal 2026, with capital expenditures of $1.2 billion primarily for Mexico beer operations [13] - Management projects a 4-6% decrease in enterprise organic net sales for fiscal 2026, with beer segment net sales expected to decline by 2-4% and wine and spirits segment net sales anticipated to drop by 17-20% [14] - Comparable EPS guidance is set at $11.30-$11.60 for fiscal 2026, with a reported EPS expectation of $9.72-$10.02 [16]

Financial Data and Key Metrics Changes - The company reported stronger-than-expected beer operating margins in Q3 despite volume declines, attributed to cost savings initiatives and favorable pricing [6][7] - The depreciation benefit seen in Q3 is expected to turn into a headwind in Q4 as additional assets come online [7][28] Business Line Data and Key Metrics Changes - The beer portfolio experienced mid-single-digit distribution growth in the quarter, with significant gains in brands like Pacifico and Victoria [22][24] - The company continues to see a shift in product mix towards aluminum packaging, which is expected to impact margins in Q4 [28] Market Data and Key Metrics Changes - The Hispanic consumer segment remains cautious due to socioeconomic concerns, impacting spending patterns [23][34] - The beer category overall is facing challenges, particularly among Hispanic consumers, with 75% expressing concerns about the economic environment [23] Company Strategy and Development Direction - The company plans to continue its modular capacity build-out, with a commitment to expand capacity by 7 million hectoliters through fiscal 2028 [13][14] - There is a focus on controlling distribution and price pack architecture to adapt to current consumer needs and market conditions [24][44] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the beer business, noting potential recovery factors such as easier comparisons and upcoming events like the World Cup [34][55] - The macroeconomic environment has worsened since previous guidance, which will be reflected in future planning and guidance updates [11] Other Important Information - The company is monitoring the cannabis market but does not currently engage in it on a day-to-day basis [51] - The World Cup is expected to create significant beer moments, with plans for promotions and media presence to capitalize on the event [55] Q&A Session Summary Question: Insights on beer operating margins - Management noted that Q3 margins were impacted by volume declines and headwinds from tariffs and logistics, but cost savings and favorable pricing helped offset these [6][7] Question: Long-term beer margin guidance - Management indicated that guidance for FY 27 and beyond will be provided in April, acknowledging that the macroeconomic environment has worsened since previous guidance [11] Question: Distribution growth and shelf space - Management remains optimistic about distribution growth, noting that their brands have gained share across the country, particularly in California [22] Question: Impact of aluminum pricing on margins - Management confirmed that aluminum pricing and tariffs will be headwinds in Q4, with a shift towards aluminum packaging continuing [28] Question: Recovery potential in the beer business - Management is cautiously optimistic about a potential recovery, citing strong brand health and upcoming events as positive indicators [34] Question: Pricing environment and adjustments - Management expects to maintain a pricing increase of 1-2%, with positive trends observed in adjusted pricing for certain brands [41][44] Question: Clarification on volume expectations - Management clarified that they expect shipments and depletions to be aligned, with both showing negative trends in Q4 [46][48] Question: Cannabis market exposure - Management acknowledged their shares in Canopy and the potential impact of cannabis market developments but emphasized that they do not currently engage in the cannabis business [51] Question: World Cup impact on sales - Management anticipates the World Cup will drive beer sales, with plans for promotions and media presence to leverage the event [55]

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Financial Performance - The company updated its FY26 reported EPS outlook to $972-$1002 and affirmed a comparable EPS outlook of $1130-$1160[16] - The company affirmed FY26 targets for operating cash flow of $25 billion to $26 billion and free cash flow of $13 billion to $14 billion[16] - Enterprise Q3 FY26 reported net sales were $2223 billion, a 10% decrease year-over-year, while organic net sales also reached $2223 billion, reflecting a 2% decrease[21, 24] - Enterprise Q3 FY26 reported operating income was $692 million, a 13% decrease year-over-year, but comparable operating income was $739 million, remaining flat[21, 28] Segment Results - The Beer Business experienced a 1% decrease in net sales, reaching $20 billion in Q3 FY26[21] - The Wine and Spirits Business reported a 51% decrease in net sales to $213 million, with organic net sales down 7%[21] - The Wine and Spirits Business operating margin contracted significantly from 221% to 158%[17] Capital Allocation - The company maintained a net leverage ratio at the target of approximately 30X[17, 19] - The company executed $220 million in share repurchases in Q3, bringing the fiscal year-to-date total to $824 million[17, 19] - Capital expenditures in Q3 were $246 million, with a fiscal year-to-date total of $656 million, primarily focused on Beer brewing capacity additions[17, 19] Strategic Initiatives - The company achieved a net benefit through efficiency and cost optimization initiatives of over $40 million in Q3 FY26 and over $145 million fiscal year-to-date[20]

Constellation Brands, the producer and owner of Modelo for the US market, has launched its first non-alcoholic variant for the brand in the US. The Modelo Chelada Limón y Sal Non-Alcoholic variant is being sold in "leading markets nationwide", a statement from Modelo said. The Modelo brand is the second non-alc beer offering from Constellation in the US, sitting alongside the group's non-alc Corona. Constellation has started rolling out the non-alc Modelo brand in Illinois, New York, Texas, Florida, an ...

| STZ 星座品牌 | | | | --- | --- | --- | | 1 40 100 1 100 7 UPF | | 收盘价 01/07 15:59 美东 | | 143.750 + 3.260 +2.32% | | 盘前价 01/08 04:30 美东 | | = 71 4 5 2 7 1 4 1 5 1 2 1 | | ● 快捷交易 | | 最高价 143.210 | 开盘价 143.110 | 成交量 388.07万 | | 最低价 140.490 | 昨收价 143.650 | 成交额 5.49亿 | | 平均价 141.550 | 市盈率TIM 22.05 | 总市值 244.55亿 (…) | | 振 幅 1.89% | 市盈率(静) 亏损 | 总股本 1.74亿 | | 换手率 2.69% | 市净率 3.171 | 流通值 202.79亿 | | 52周最高 194.243 | 委 比 -21.95% | 流通股 1.44亿 | | 52周最低 126.450 | 量 比 1.35 | 色 手 1股 | | 历史最高 264.756 | 股息TTM 4.070 | | | 历史最低 ...

Core Insights - Constellation Brands, Inc. (STZ) reported strong financial performance for Q3 of fiscal 2026, with earnings per share (EPS) of $3.06, exceeding estimates of $2.65, and revenue of approximately $2.22 billion, surpassing expectations of $2.16 billion [2][6] Financial Performance - The Beer Business segment achieved notable gains in both dollar and volume share, contributing positively to overall financial results [3] - The Wine and Spirit Business continued to outperform the U.S. wine industry, further solidifying the company's market position [3] Market Valuation - STZ has a price-to-earnings (P/E) ratio of approximately 22.10, indicating strong investor confidence in its earnings potential [4] - The price-to-sales ratio stands at about 2.62, reflecting the value placed on each dollar of sales [4] - The company maintains a low debt-to-equity ratio of 0.047, suggesting prudent financial management [4] Financial Stability - The current ratio of approximately 1.34 indicates the company's ability to cover short-term liabilities with short-term assets [5] - An earnings yield of about 4.53% represents a solid return on investment for shareholders [5]

Core Viewpoint - Constellation Brands reported a decline in revenue and earnings per share (EPS) for the quarter ended November 2025, indicating potential challenges in its financial performance [1]. Financial Performance - Revenue for the quarter was $2.22 billion, down 9.8% year-over-year, but exceeded the Zacks Consensus Estimate of $2.18 billion by 2.18% [1]. - EPS for the quarter was $3.06, compared to $3.25 a year ago, missing the consensus estimate of $2.65 [1]. Key Metrics - Net Sales for Wine and Spirits were $213.1 million, significantly above the average estimate of $170.25 million, but represented a year-over-year decline of 50.6% [4]. - Net Sales for Beer were $2.01 billion, matching the average estimate, with a slight year-over-year decrease of 1.1% [4]. - Operating Income for Wine and Spirits was $33.7 million, exceeding the estimate of $10.85 million [4]. - Operating Income for Beer was $763.5 million, surpassing the average estimate of $724.82 million [4]. - Corporate Operations and Other reported an Operating Income of -$58.3 million, better than the estimated -$61.78 million [4]. Stock Performance - Shares of Constellation Brands have returned +0.2% over the past month, underperforming the Zacks S&P 500 composite's +1.2% change [3]. - The stock currently holds a Zacks Rank 4 (Sell), suggesting potential underperformance in the near term [3].

Group 1 - The core point of the article highlights that Constellation Brands, the maker of Corona, is facing challenges due to economic stress among its Hispanic consumer base and a weaker construction market, which are negatively impacting beer demand [1] Group 2 - The economic stress affecting a significant segment of Hispanic consumers is identified as a key factor contributing to the decline in beer demand [1] - The weaker construction market is also noted as a contributing factor to the reduced demand for beer [1]

Group 1 - Constellation Brands reported third-quarter sales and profit above Wall Street estimates [1] - The growth was driven by steady demand for Modelo Especial and Corona beer brands [1]