Wall Street analysts expect Constellation Brands (STZ) to post quarterly earnings of $4.11 per share in its upcoming report, which indicates a year-over-year increase of 11.1%. Revenues are expected to be $2.95 billion, up 4% from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 0.1% lower over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe. Prior to a compan ...

Constellation Brands, Inc. (STZ) is scheduled to release second-quarter fiscal 2025 results on Oct. 3, 2024. The alcoholic beverage bigwig is expected to have recorded top-and-bottom-line growth in the to-be-reported quarter. Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar. The Zacks Consensus Estimate for the company's fiscal second-quarter earnings is pegged at $4.11 per share, indicating 11.1% growth from the year-ago quarter's reported figure. The consensus mark has moved down b ...

Constellation Brands Inc. (STZ) has lowered its financial outlook for fiscal 2025, citing continued soft trends in its Wine and Spirits business. The company noted that weakness persisted in the U.S. wholesale wine and spirits market, leading to declines in the overall wine market and its mainstream and premium wine brands. The company attributed the weakness in consumer demand to ongoing macroeconomic headwinds, particularly rising unemployment. As a result of this weakness, STZ expects to record non-cash ...

Group 1 - Constellation Brands raised the lower end of its fiscal 2025 adjusted earnings per share (EPS) outlook to between $13.60 and $13.80, up from the previous range of $13.50 to $13.80 [2][3] - The company expects to recognize a non-cash goodwill impairment loss of $1.5 billion to $2.5 billion in its wine and spirits division for the fiscal second quarter ending August 31 [3][4] - The impairment is attributed to rising unemployment and a slowdown in consumer demand affecting the U.S. wholesale wine and spirits market, leading to declines in both the overall wine market and mainstream and premium wine brands [4] Group 2 - Constellation's non-adjusted EPS outlook was cut to between $3.05 and $7.92 from the previous forecast of $14.63 to $14.93 due to the impairment [4] - The stock of Constellation Brands increased by approximately 2.5% following the earnings outlook update, despite broader market declines [2][5]

Core Viewpoint - Constellation Brands is facing significant challenges due to weak wine demand, leading to a potential asset write-down of up to $2.5 billion and a drastic reduction in earnings outlook for the year [1][2]. Financial Outlook - The company has nearly halved its earnings outlook to a range of $3.05 to $7.92 per share, down from initial expectations of $14.63 to $14.93 per share [2]. - Total sales outlook has been revised down to between 4% and 6%, from a previous estimate of 6% to 7% [2]. Market Conditions - CEO Bill Newlands highlighted ongoing macroeconomic headwinds, particularly rising unemployment, as factors contributing to a slowdown in consumer demand for products [3][6]. - A sales decline of 4% to 6% is expected in the wine and spirits division, contrasting with earlier expectations of flat sales [3]. Strategic Adjustments - The company plans to adjust pricing and enhance marketing efforts to mitigate sales challenges in the wine and spirits sector [4]. - Despite the struggles in the wine division, Constellation anticipates a sales growth of 6% to 8% in its beer division [4]. Sales Performance - The demand drop has been particularly pronounced in the top five states for the beer business, which account for over half of Constellation's total sales volumes [7]. - The company had previously raised its profit outlook in July due to improved margins and strong beer sales [7]. Stock Performance - On the day of the announcement, Constellation shares rose by 2%, and the stock has increased by 0.7% year-to-date [8]. - The company has a market capitalization of $44.99 billion [8].

Constellation Brands, Inc. (NYSE:STZ) Barclays 17th Annual Global Consumer Staples Conference September 3, 2024 11:15 AM ET Company Participants Bill Newlands - President and Chief Executive Officer Garth Hankinson - Executive Vice President and Chief Financial Officer Conference Call Participants Lauren Lieberman - Barclays Lauren Lieberman Thank you for being here and welcome to the 33rd Annual Barclays Global Consumer Staples Conference. As always, it's awesome to see so many familiar faces once again, a ...

Financial Outlook - The company updated its reported EPS guidance to a range of $3.05 - $7.92 and raised the lower end of comparable EPS guidance to $13.60 - $13.80, affirming expectations for double-digit comparable EPS growth [1][2] - Enterprise net sales growth is now projected at 4% - 6%, with reported operating income expected to decline by (68)% - (36)%, which includes an anticipated Wine and Spirits goodwill impairment loss of approximately $1.5 - $2.5 billion [1][2][4] - Beer net sales growth is updated to 6% - 8%, with operating income growth raised to 11% - 12%, while Wine and Spirits net sales and operating income are expected to decline by (6)% - (4)% and (18)% - (16)%, respectively [1][2] Business Performance - The company anticipates a non-cash goodwill impairment loss for the Wine and Spirits business due to negative trends in the U.S. wholesale market, particularly affecting mainstream and premium wine brands [4][5] - Despite macroeconomic headwinds, the Beer Business is on track for a mid single-digit volume increase this fiscal year, with strong brand loyalty and only minor shifts to value packs [5][6] - The company continues to outperform the CPG sector by nearly 3 percentage points in dollar sales and remains the top dollar share gainer in the beer category [5][6] Cost Management and Capital Allocation - Cost savings and efficiency initiatives are providing significant benefits for the Beer Business, allowing for reinvestment into marketing programs [5] - The company aims to achieve a ~3.0x net leverage ratio target this fiscal year and plans to return cash to shareholders through dividends and share repurchases, including $449 million executed in the first half of the fiscal year [5][6] Free Cash Flow - Free cash flow is projected to be between $1.4 billion and $1.5 billion, providing liquidity for general corporate purposes after debt service and dividend payments [3][26]

ROCHESTER, N.Y., Aug. 29, 2024 (GLOBE NEWSWIRE) -- Constellation Brands, Inc. (NYSE: STZ), a leading beverage alcohol company, announced today it will report financial results for its second quarter ending August 31, 2024, on Thursday, October 3, 2024, before the open of the U.S. markets. A conference call to discuss the financial results and outlook will be hosted by President and Chief Executive Officer, Bill Newlands, and Executive Vice President and Chief Financial Officer, Garth Hankinson, at 10:30 a.m ...

Q1 FY25 Financial Performance - Enterprise net sales increased by 6% to $2.662 billion compared to Q1 FY24[155] - Beer Business net sales increased by 8% to $2.2728 billion in Q1 FY25[155] - Wine and Spirits Business net sales decreased by 7% to $389 million in Q1 FY25[155] - Enterprise reported EPS was $4.78, and comparable EPS was $3.57 in Q1 FY25[155] - The company's capital expenditure was $375 million, primarily focused on Beer brewing capacity additions[169] FY25 Outlook - Enterprise net sales are expected to grow by +6% to +7%[158] - Beer Business net sales are expected to grow by +7% to +9%, and Wine and Spirits Business net sales are expected to range from a decline of (0.5)% to growth of +0.5%[158] - Enterprise reported EPS outlook is updated to $14.63 - $14.93, and comparable EPS outlook is affirmed at $13.50 - $13.80[169] - The company targets operating cash flow of $2.8 billion to $3.0 billion and free cash flow of $1.4 billion to $1.5 billion[169] Capital Allocation - The company reduced its net leverage ratio to approximately 3.1X[3, 169] - Over $240 million of share repurchases were executed through June 2024[3, 169]

Constellation Brands, Inc. (NYSE:STZ) Q1 2025 Earnings Conference Call July 3, 2024 10:30 AM ET Company Participants Joseph Suarez - SVP, IR Bill Newlands - President & CEO Garth Hankinson - CFO Conference Call Participants Andrea Teixeira - JP Morgan Carlos Laboy - HSBC Dara Mohsenian - Morgan Stanley Filippo Falorni - Citi Lauren Lieberman - Barclays Nik Modi - RBC Capital Markets Bryan Spillane - Bank of America Peter Grom - UBS Chris Carey - Wells Fargo Securities Bonnie Herzog - Goldman Sachs Rob Otten ...