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 ...

Company Overview - Constellation Brands Inc. is primarily recognized for its beer brands, including Modelo Especial, Corona Extra, and Pacifico, and is set to report its fiscal Q1 earnings on July 2, 2025 [2] - The company has a current market capitalization of $30 billion, with total revenue over the past twelve months amounting to $10 billion [3] Financial Performance - Analysts project an EPS of $3.33 and revenue of $2.56 billion for the upcoming earnings report, reflecting a 31% decline in earnings and a 4% decrease in sales compared to the previous year [2] - In the fiscal year ending February 28, beer accounted for 84% of sales, totaling $8.5 billion, with a 40% operating margin, significantly higher than that of wine and spirits [3] - The fourth quarter saw a modest sales increase of 1% to $2.2 billion, while cost reductions led to a 6% rise in operating income [3] - The company has revised its medium-term revenue growth forecast down to 2%-4%, from a previous estimate of 6%-8% [3] Market Dynamics - More than 98% of Constellation Brands' sales are generated in the U.S., indicating potential vulnerability to emerging tariffs that could pressure margins or reduce demand [3] - The company reported operating profits of $350 million and a net income of -$81 million over the past year [3]

Constellation Brands, Inc. STZ will release earnings results for the first quarter, after the closing bell on Tuesday, July 1.Analysts expect the Rochester, New York-based 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 June 2, Constellation Brands announced delivery of notices of redemption for ...

Core Viewpoint - Needham analyst Gerald Pascarelli has reiterated a Buy rating on Constellation Brands, Inc. but has lowered the price forecast from $215 to $195, anticipating a weak start to fiscal year 2026 with first-quarter results expected on July 1 [1][3]. Group 1: Financial Performance Expectations - Pascarelli predicts that Constellation Brands will report beer revenue and margins below the lower end of full-year guidance, which may negatively impact Street estimates [1]. - The analyst has reduced his first-quarter earnings per share (EPS) estimate to $3.20, and lowered fiscal year 2026 and fiscal year 2027 EPS estimates to $12.64 and $13.76, respectively [3][5]. - The price forecast of $195 implies a ~20% discount to the company's historical average multiple of ~14x [3]. Group 2: Market Trends and Challenges - Over the past three months, beer volumes have declined sequentially, with a forecasted beer depletion of -3.0%, which is 120 basis points below the -1.8% consensus [2][4]. - Volume trends have weakened since February due to category softness, ongoing consumer challenges, and poor weather in May and early June [3]. - Increased investment spending, particularly in marketing (estimated at 9.5% of sales), along with volume pressure, contributes to a forecasted beer margin of 38.0%, notably below the Street's 39.8% [4]. Group 3: Segment Performance and Guidance - Pascarelli is 10 points below consensus on wine and spirits revenue, expecting a ~30% organic decline, with the Svedka divestiture contributing to a ~5-point hit [5]. - The analyst models a 70% drop in segment operating income due to volume deleverage and distributor repayments [5]. - Despite a weak start to fiscal year 2026, the initial beer guidance was conservative enough to allow the company to meet its full-year targets, with management typically avoiding guidance revisions in the first quarter [6].

Core Viewpoint - Constellation Brands, Inc. (NYSE: STZ) is expected to report its Q1'26 results on July 1, with no anticipation of exceptional performance in the operating results [1] Company Performance Expectations - The focus is on the company's operating performance for the upcoming quarter, with an emphasis on maintaining a long-term investment perspective [1]

Core Viewpoint - Wall Street anticipates a year-over-year decline in earnings for Constellation Brands due to lower revenues, with actual results being crucial for near-term stock price movements [1][2]. Earnings Expectations - The upcoming earnings report is expected to show quarterly earnings of $3.39 per share, reflecting a -5% change year-over-year, and revenues of $2.58 billion, down 3.2% from the previous year [3]. - The consensus EPS estimate has been revised 0.15% lower in the last 30 days, indicating a bearish sentiment among analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that the Most Accurate Estimate for Constellation Brands is lower than the consensus estimate, resulting in an Earnings ESP of -2.69%, which complicates predictions of an earnings beat [12]. - A positive Earnings ESP is generally a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3 [10]. Historical Performance - In the last reported quarter, Constellation Brands exceeded the expected earnings of $2.28 per share by delivering $2.63, resulting in a surprise of +15.35% [13]. - Over the past four quarters, the company has beaten consensus EPS estimates three times [14]. Conclusion - Constellation Brands does not currently appear to be a compelling candidate for an earnings beat, and investors should consider other factors when making decisions regarding the stock ahead of the earnings release [17].

Core Insights - Constellation Brands has faced significant challenges over the past five years, resulting in an 8% decline in stock value while the S&P 500 rose by 86% [1] - The company generates the majority of its revenue from its beer business, which has seen a shift in revenue distribution from 67.3% in fiscal 2020 to 83.7% in fiscal 2025 [4][6] - Analysts predict a decline in revenue from $10.2 billion in fiscal 2025 to $9.9 billion by fiscal 2028, but expect profitability to return in fiscal 2026 [13] Business Performance - In fiscal 2025, Constellation's revenue breakdown was 83.7% from beer, 14.2% from wine, and 2.1% from spirits, indicating a significant shift towards beer [4] - Revenue growth from beer has decelerated, with a 5% growth rate in fiscal 2025 compared to 11% in the previous two years [5][7] - The wine and spirits segments have experienced declining revenues, with wine revenue decreasing by 7% and spirits by 11% in fiscal 2025 [5][10] Strategic Moves - The company has divested lower-margin wine and spirits brands to focus on premium offerings, which has impacted overall revenue [6] - Management plans to continue pruning its wine and spirits portfolio to strengthen higher-margin brands [10] - Constellation is exploring options to mitigate tariff impacts, including potentially increasing prices, although demand among younger consumers may limit pricing power [12] Future Outlook - Analysts expect a compound annual growth rate of 7% in EPS from fiscal 2026 to fiscal 2028, with profitability anticipated to return in fiscal 2026 [13][14] - If the company can navigate tariff challenges and refine its product portfolio, stock prices could rise by approximately 45% over the next five years [14] - Despite potential gains, Constellation may still underperform compared to other consumer staples and the S&P 500 [15]