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]

Core Insights - Constellation Brands has launched its first non-alcoholic variant of Modelo, named Modelo Chelada Limón y Sal Non-Alcoholic, in the US market [1] - The new product is being rolled out in key states including Illinois, New York, Texas, Florida, and California, and is priced similarly to the non-alcoholic Corona [2] - The non-alcoholic variant contains less than 0.5% alcohol by volume (abv) and aims to provide consumers with flavorful options without alcohol [2][3] Company Strategy - The launch of Modelo Chelada Non-Alcoholic aligns with consumer demand for choices that do not compromise on flavor, as highlighted by the brand's marketing vice president [3] - Constellation has a smaller range of non-alcoholic options compared to competitors but has made investments in this segment, including a minority stake in functional drinks producer Hiyo and alcohol-free sparkling beverage brand Töst [4] Financial Performance - Constellation Brands reported a 10% drop in total organic net sales to $2.2 billion for the three months ending November 30 [5] - The beer segment experienced a 1% decline in net sales to $2 billion, while the wine and spirits segment saw a 7% decrease in organic net sales to $229 million, with shipments down over 70% attributed to the sale of Svedka Vodka and several wine brands [6]

Core Insights - Constellation Brands (STZ.US) reported a third-quarter earnings per share of $3.06 for fiscal year 2026, exceeding analysts' expectations of $2.64 [1] - The company's quarterly revenue reached $2.22 billion, also surpassing the consensus estimate of $2.16 billion [1] - Constellation Brands reaffirmed its adjusted earnings per share guidance for fiscal year 2026, projecting a range of $11.30 to $11.60, compared to analysts' expectation of $11.49 [1] Financial Summary - Pre-market stock price increased by 2.3% to $143.750 [2] - The stock's highest price was $143.210, with a lowest price of $140.490 during the trading session [2] - The total market capitalization of Constellation Brands is approximately $24.455 billion [2] - The price-to-earnings ratio (P/E) stands at 22.05, with a dividend yield of 2.90% [2]

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]

Group 1 - Constellation Brands reported lower third-quarter sales, primarily due to lagging beer sales amid weak consumer sentiment [1] - The decline in sales is attributed to a pullback in spending from Hispanic drinkers, influenced by the Trump administration's immigration crackdown [1] - Overall, the company is facing challenges in maintaining its market position as consumer behavior shifts [1]

Constellation Brands, Inc. (NYSE:STZ) shares climbed in Wednesday's extended trading after the company released its third quarter earnings report, beating estimates on the top and bottom lines. Here's a look at the key figures from the quarter. STZ stock is moving. Watch the price action here.The Details: Constellation Brands reported quarterly earnings of $3.06 per share, which beat the analyst consensus estimate of $2.64, according to Benzinga Pro data.Quarterly revenue came in at $2.22 billion, which bea ...

Financial Performance - Reported net sales for Q3 FY2026 were $2,223 million, a decline of 10% year-over-year[1] - Comparable diluted EPS for Q3 FY2026 was $3.06, down 6% from the previous year[1] - Fiscal 2026 reported EPS outlook is updated to $9.72 - $10.02, with comparable EPS outlook affirmed at $11.30 - $11.60[6] - Consolidated net sales for the three months ended November 30, 2025, were $2,222.8 million, a decrease of 10% compared to $2,463.8 million for the same period in 2024[46] - Gross profit for the three months ended November 30, 2025, was $1,183.2 million, down 8% from $1,284.3 million in the prior year[46] - Operating income for the three months ended November 30, 2025, was $692.0 million, a 13% decline from $793.0 million in 2024, while operating margin decreased to 31.1% from 32.2%[46] - Net income attributable to CBI for the three months ended November 30, 2025, was $502.8 million, an 18% decrease from $615.9 million in 2024[48] - Comparable EPS for the three months ended November 30, 2025, was $3.06, a 6% decline from $3.25 in the same period last year[48] - The company reported a significant increase in operating income for the nine months ended November 30, 2025, reaching $2,279.8 million, compared to $505.2 million in 2024, marking a 351% increase[46] - The company experienced a 10% decrease in gross profit for the nine months ended November 30, 2025, totaling $3,759.8 million, down from $4,199.9 million in 2024[46] Shareholder Returns - The company returned nearly $1.4 billion to shareholders through share repurchases and maintained a ~30% dividend payout ratio[5] - The company declared cash dividends of $1.02 per common share for the three months ended November 30, 2025, slightly up from $1.01 in the same period of 2024[34] - Dividends paid during the nine months ended November 30, 2025, totaled $(538.8) million, slightly down from $(551.3) million in the previous year[38] Cash Flow and Liquidity - Year-to-date operating cash flow reached $2.1 billion, with free cash flow of $1.45 billion[6] - Cash and cash equivalents increased to $152.4 million as of November 30, 2025, compared to $68.1 million as of February 28, 2025, an increase of 123.4%[32] - The company reported a net cash provided by operating activities of $2,106.2 million for the nine months ended November 30, 2025, compared to $2,557.5 million for the same period in 2024, a decrease of 17.6%[36] - For the nine months ended November 30, 2025, net cash provided by operating activities was reported at $2.106 billion, down from $2.557 billion in the prior year[71] Business Segments Performance - The Beer Business gained dollar and volume share, outperforming the total beverage alcohol category by nearly 0.5 percentage points[6] - Wine and Spirits net sales declined 51%, driven by a 70.6% decrease in shipment volumes due to divestitures[15] - Beer net sales for the three months ended November 30, 2025, were $2,009.7 million, a decline of 1% from $2,032.4 million in 2024[41] - Wine and Spirits net sales for the three months ended November 30, 2025, were $213.1 million, a significant drop of 51% compared to $431.4 million in 2024[41] - Wine net sales dropped 53% to $174.5 million for the three months ended November 30, 2025, compared to $374.6 million in 2024[46] - Spirits net sales decreased by 32% to $38.6 million for the three months ended November 30, 2025, down from $56.8 million in the previous year[46] Strategic Initiatives - The company anticipates potential impacts from its acquisition and divestiture strategies, including the 2025 Wine Divestitures, which may affect future performance[30] - The company completed the sale of the SVEDKA brand on January 6, 2025, and the 2025 Wine Divestitures on June 2, 2025, impacting net sales[40] - The company recognized costs related to the 2025 Restructuring Initiative aimed at optimizing business performance, with an estimated cost of $73 million for the year ending February 28, 2026[54][66] - The company incurred strategic business reconfiguration costs of $6 million as part of its efforts to streamline operations[66] Asset and Liability Management - Total current assets decreased to $2,909.1 million as of November 30, 2025, from $3,716.4 million as of February 28, 2025, a decline of 21.7%[32] - Total liabilities decreased to $13,683.1 million as of November 30, 2025, from $14,517.5 million as of February 28, 2025, a reduction of 5.8%[32] - Cash and cash equivalents at the end of the period were $152.4 million, an increase from $73.7 million at the end of the previous year[38] Impairments and Losses - The company experienced a goodwill impairment of $2,250.0 million in the nine months ended November 30, 2024, which significantly impacted net income for that period[34] - The company reported a goodwill impairment related to negative trends in the Wine and Spirits business, impacting financial results significantly[58] - A net loss of $1.1 million was recorded from the sale of assets for the three months ended November 30, 2025, while a net gain of $3.0 million was reported for the nine months ended November 30, 2024[59] - The company recognized a loss of $20.7 million related to foreign currency as a result of tax examinations and assessments[59] Future Guidance - Free cash flow guidance for the year ending February 28, 2026, is projected to be between $1.3 billion and $1.4 billion, with net cash provided by operating activities estimated at $2.5 billion to $2.6 billion[71] - Operating income (GAAP) guidance for the year ending February 28, 2026, is set between $2.685 billion and $2.756 billion, reflecting a significant increase from the previous year[66]