Core Viewpoint - The Constellation Brands class action lawsuit alleges violations of the Securities Exchange Act of 1934 by the company and its executives, with a focus on misleading information regarding the company's performance in the Wine and Spirits business and ineffective investments in media and sales capabilities [1][3][4]. Group 1: Class Action Lawsuit Details - The class action lawsuit is titled Meza v. Constellation Brands, Inc., and covers purchasers of Constellation Brands securities from April 11, 2024, to January 8, 2025 [1]. - Investors have until April 21, 2025, to seek appointment as lead plaintiff in the lawsuit [1]. - The lawsuit claims that Constellation Brands created a false impression of reliable information regarding its business and failed to disclose the ineffectiveness of its investments [3]. Group 2: Financial Performance Allegations - On January 10, 2025, Constellation Brands reported third quarter fiscal year 2025 results, showing significant misses in sales performance for both the Beer and Wine and Spirits segments [4]. - The announcement of poor sales performance led to a decline in the stock price of Constellation Brands [4]. Group 3: Lead Plaintiff Process - The Private Securities Litigation Reform Act of 1995 allows any investor who purchased Constellation Brands securities during the class period to seek lead plaintiff status [5]. - The lead plaintiff represents the interests of all class members and can select a law firm for litigation [5]. Group 4: About Robbins Geller - Robbins Geller Rudman & Dowd LLP is a leading law firm specializing in securities fraud cases, having recovered $6.6 billion for investors in class action cases [6]. - The firm has been ranked 1 in securing monetary relief for investors in six out of the last ten years [6].

Core Viewpoint - A class action securities lawsuit has been filed against Constellation Brands, Inc. due to alleged securities fraud affecting investors between April 11, 2024, and January 8, 2025 [1][2]. Group 1: Lawsuit Details - The lawsuit aims to recover losses for investors who were negatively impacted by the alleged fraud during the specified period [1]. - The complaint highlights that the defendants provided misleading information regarding Constellation's fiscal results for 2024 and the financial outlook for 2025, particularly in the Wine and Spirits business [2]. - On January 8, 2025, Constellation announced disappointing third-quarter results, with significant misses in both the Beer and Wine & Spirits segments, leading to a sharp decline in stock price from $219.28 to $181.81 within two days [2]. Group 2: Next Steps for Investors - Investors who suffered losses during the relevant timeframe have until April 21, 2025, to request appointment as lead plaintiff, although participation in any recovery does not require this role [3]. - Class members may be entitled to compensation without incurring any out-of-pocket costs or fees [3]. Group 3: Firm Background - Levi & Korsinsky, LLP has a strong track record in securities litigation, having secured hundreds of millions for shareholders over the past 20 years [4]. - The firm has been recognized as one of the top securities litigation firms in the United States for seven consecutive years [4].

Core Insights - Constellation Brands, Inc. reported fourth-quarter fiscal 2025 results with both sales and earnings exceeding Zacks Consensus Estimates, showing year-over-year improvement despite softer consumer demand [1][4] Financial Performance - Comparable EPS for the fourth quarter was $2.63, a 14% increase year over year, surpassing the Zacks Consensus Estimate of $2.28 [3] - Reported net sales rose 1% year over year to $2.16 billion, exceeding the Zacks Consensus Estimate of $2.13 billion [4] - The company incurred a reported loss of $2.09 per share, which included a non-cash goodwill impairment loss of $547.7 million for the wine and spirits business [3] Segment Performance - Beer segment sales were nearly flat at $1.7 billion, with a 1.8% decline in shipment volumes, partially offset by pricing [5] - Wine and spirits segment sales increased 5% year over year to $459.8 million, driven by a 3.5% rise in shipment volumes [7] - Comparable operating income was $659 million, up 6% from the prior year, with beer segment operating income improving 7% to $623.8 million [8][9] Financial Position - As of February 28, 2025, cash and cash equivalents were $68.1 million, long-term debt was $9.3 billion, and total shareholders' equity was $6.9 billion [11] - The company generated an operating cash flow of $3.2 billion and an adjusted free cash flow of $1.9 billion for fiscal 2025 [11] Dividend and Shareholder Returns - A quarterly dividend of $1.02 per share was announced, payable on May 15, 2025 [12] - The company returned nearly $1.9 billion to shareholders through share repurchases and dividends in fiscal 2025 [12] Future Outlook - For fiscal 2026, the company anticipates organic net sales to decline by 2% to increase by 1%, with a significant expected decline of 17-20% in the wine and spirits segment [14] - Comparable EPS guidance for fiscal 2026 is set at $12.60-$12.90, with reported EPS expected to be $12.33-$12.63 [16] - Operating cash flow is forecasted to be $2.7-$2.8 billion for fiscal 2026, with capital expenditures of $1.2 billion planned [18] Medium-Term Projections - For fiscal 2027 and 2028, the company expects enterprise net sales growth of 2-4%, with operating income margins projected at 35-36% [19] - EPS growth is anticipated to be mid-single-digit to low-double-digit for fiscal 2027 and low-single-digit to mid-single-digit for fiscal 2028 [21]

Core Insights - Constellation Brands is facing challenges due to President Trump's tariffs on Mexican imports and his immigration policies, which are negatively impacting beer sales among Hispanic consumers [1][3] - Approximately 50% of Constellation's beer sales are derived from Hispanic consumers, and while the company has successfully marketed to non-Hispanic drinkers, the Hispanic demographic remains crucial, accounting for 78% of total revenue in the fiscal fourth quarter [2][3] - Concerns within the Hispanic community regarding immigration and job losses are leading to reduced spending on various sectors, including beer, which is affected by declining social gatherings [3][4] Financial Outlook - Constellation Brands provided a weaker-than-expected outlook for fiscal 2026 and reduced its medium-term forecasts, factoring in the impact of new tariffs, including a 25% aluminum tariff on canned beer imported from Mexico [5] - Despite the disappointing forecast, the company reported better-than-expected earnings and revenue for the quarter and announced a strategic divestment of cheaper wines to focus on higher-end brands [6] - Following the announcement, Constellation's shares fell less than 1% in afternoon trading, with a total decline of over 23% since Trump's election [6]

FY25 FINANCIAL RESULTS & FY26 TO FY28 OUTLOOK April 9, 2025 FORWARD-LOOKING STATEMENTS This presentation, including the oral statements made in the live conference call in connection herewith, contain forward-looking statements that are based on certain assumptions, estimates, expectations, plans, analyses, and opinions made by management in light of their experience and perception of historical trends, current conditions, and expected future developments, as well as other factors management believes are ap ...

Constellation Brands (NYSE: STZ ) has one of Mexico's most valuable beer brands, although its marketing agreements only allow it to sell outside of the country. While the stock has fallen sharply recently, I think this is justified because the riskMy name is María Fernanda and I'm currently studying an MBA. My inspiration investors are Warren Buffett, Peter Lynch and Terry Smith, so I look for quality companies at a reasonable valuation. I believe that, in the long term, fundamentals are what drive the shar ...

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, ...

Group 1 - The Gross Law Firm has issued a notice to shareholders of Constellation Brands, Inc. regarding a class action lawsuit related to the company's fiscal results and financial outlook [1] - The class period for the lawsuit is from April 11, 2024, to January 8, 2025, during which shareholders are encouraged to contact the firm for possible lead plaintiff appointment [1][2] - Allegations include that Constellation Brands provided misleading information about its financial performance, particularly a significant miss in sales for the Beer segment and an even larger miss for the Wine & Spirits segment, leading to a sharp decline in stock price from $219.28 to $181.81 [1] Group 2 - Shareholders have a deadline of April 21, 2025, to register for the class action and can enroll in a portfolio monitoring software for updates on the case [2] - The Gross Law Firm aims to protect investors' rights and seeks recovery for losses incurred due to misleading statements or omissions by companies [3]

Core Viewpoint - Constellation Brands has provided a weaker-than-expected outlook for fiscal 2026, primarily due to the impact of higher U.S. tariffs on imported beer from Mexico, which is a significant part of its business [1][3][6]. Group 1: Financial Performance - For fiscal 2025 fourth-quarter earnings, Constellation exceeded Wall Street's estimates, reporting adjusted earnings per share of $2.63 compared to the expected $2.28, and revenue of $2.16 billion versus the anticipated $2.13 billion [2][8]. - The company anticipates comparable earnings per share for fiscal 2026 to be in the range of $12.60 to $12.90, significantly below Wall Street's estimate of $13.97 per share [6]. Group 2: Tariff Impact - The Trump administration has imposed a 25% tariff on all imported canned beer and empty aluminum cans, effective April 4, which directly affects Constellation as it imports all its beer from Mexico [3][4]. - Despite a temporary reduction in reciprocal tariffs to 10% for 90 days, this does not apply to sector-specific duties like those on aluminum, which will continue to impact costs [3]. Group 3: Strategic Changes - Constellation plans to reposition its portfolio by divesting from "mainstream" wines and focusing on higher-priced brands, with a recent sale of its Svedka vodka brand to Sazerac [5]. - The company has lowered its medium-term outlook for fiscal 2027 and 2028, projecting enterprise sales growth to be between 2% and 4%, down from a previous estimate of 6% to 8% [7]. Group 4: Capital Expenditures - Constellation plans to reduce its capital expenditures for fiscal 2027 and 2028, projecting a 40% year-over-year decrease in fiscal 2027 and a 35% decrease in fiscal 2028, compared to an earlier outlook of $5 billion in spending from fiscal 2024 to fiscal 2028 [7].

Financial Performance - Reported net sales for FY25 were $10.2 billion, reflecting a 2% increase compared to FY24, while organic net sales also grew by 3%[22]. - The beer segment achieved a net sales growth of 9% in FY25, with operating income increasing by 10% to $3.4 billion[18][25]. - Wine and spirits segment reported a decline in net sales of 7% to $1.67 billion, with operating income decreasing by 18% to $325 million[18][21]. - Consolidated net sales for the year ended February 28, 2025, increased by 2% to $10,208.7 million, up from $9,961.8 million in the previous year[102]. - Organic net sales for the year ended February 28, 2025, rose by 3% to $10,208.7 million, compared to $9,939.2 million for the year ended February 29, 2024[102]. - Beer net sales for the year ended February 28, 2025, increased by 5% to $8,539.8 million, while Wine and Spirits net sales decreased by 7% to $1,668.9 million[102]. - Net income for the year ended February 28, 2025, was a loss of $31.1 million, compared to a net income of $1,765.2 million for the year ended February 29, 2024[97]. - The company reported a net loss attributable to Constellation Brands, Inc. of $375.3 million for the three months ended February 28, 2025, compared to a net income of $392.4 million for the same period in 2024[95]. Cash Flow and Capital Expenditures - Expected operating cash flow of approximately $9 billion from FY26 to FY28, with free cash flow projected between $6 billion to $7 billion[14]. - Operating cash flow for FY25 was $3.2 billion, representing a 28% increase compared to FY24[21]. - Capital expenditures for FY25 were $992 million, with expectations of approximately $1 billion in cumulative CAPEX for FY26 to FY28[33]. - Total capital expenditures from FY26 to FY28 are expected to be around $2.4 billion, with approximately $2 billion allocated to the Beer Business[66]. Strategic Initiatives and Cost Savings - Enterprise-wide restructuring actions are expected to yield over $200 million in net annualized cost savings by FY28[14]. - The company anticipates over $100 million in net annualized cost savings across COGS, Marketing, and SG&A by FY28, including approximately $55 million in FY26[58]. - The company delivered approximately $220 million in cost savings through supply chain efficiencies, resulting in a 180 basis point increase in beer business operating margin to 39.7%[21]. - Significant cash generation and returns to shareholders expected, with a compelling growth outlook beyond FY26[13]. Market Growth and Segment Performance - Beer segment anticipated to achieve 2% to 4% net sales growth and operating margins of 39% to 40% in FY27 and FY28, driven by distribution gains and marketing investments[14]. - Wine and Spirits segment expected to deliver up to 3% net sales growth and operating margins of 22% to 24% in FY27 and FY28, following the 2025 Wine Divestitures Transaction projected to generate around $900 million in proceeds[14]. - The company is the only large-scale entity to be a Top 10 growth leader for 12 consecutive years, holding the 1 position for 6 of the last 8 years[14]. - Modelo Especial contributed over 40% of Core Beer Brands POD growth from FY23 to FY25 and is expected to contribute over 30% from FY25 to FY28[40]. - Pacifico was the second largest POD growth driver among Core Beer Brands from FY23 to FY25, contributing over 20% of uplift and is expected to contribute over 30% from FY25 to FY28[40]. Shareholder Returns and Dividends - Committed to a disciplined capital allocation strategy, including share repurchases against a $4 billion authorization approved in April 2025[14]. - A new total 3-year $4 billion share repurchase authorization has been established to enhance returns[65]. - The company reported a cash dividend declared per common share of $1.01 for the three months ended February 28, 2025, compared to $0.89 in the prior year[95]. - The company plans to maintain a net leverage ratio of around 3.0x and a dividend payout ratio of approximately 30% from FY26 to FY28[31]. Future Projections - The company expects low single-digit CAGR for consolidated net sales from FY26 to FY28, with an operating margin target of approximately 34-35%[30]. - The company expects to maintain best-in-class operating margins of approximately 39% to 40% in FY26-FY28[52]. - The forecasted EPS (GAAP) for the year ending February 28, 2026, is projected to be between $12.33 and $12.63, with a comparable EPS (Non-GAAP) forecasted between $12.60 and $12.90[138]. - Free cash flow (Non-GAAP) guidance for the year ending February 28, 2026, is estimated to be between $1,500 million and $1,600 million[141].