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STZ Q4 Earnings & Sales Beat, Stock Dips 3.6% on Cautious FY26 View
STZConstellation Brands(STZ) ZACKS·2025-04-10 17:15

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,a142.63, a 14% increase year over year, surpassing the Zacks Consensus Estimate of 2.28 [3] - Reported net sales rose 1% year over year to 2.16billion,exceedingtheZacksConsensusEstimateof2.16 billion, exceeding the Zacks Consensus Estimate of 2.13 billion [4] - The company incurred a reported loss of 2.09pershare,whichincludedanon−cashgoodwillimpairmentlossof2.09 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 1.7billion,witha1.81.7 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 659million,up6659 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 68.1million,long−termdebtwas68.1 million, long-term debt was 9.3 billion, and total shareholders' equity was 6.9billion[11]−Thecompanygeneratedanoperatingcashflowof6.9 billion [11] - The company generated an operating cash flow of 3.2 billion and an adjusted free cash flow of 1.9billionforfiscal2025[11]DividendandShareholderReturns−Aquarterlydividendof1.9 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 1.9billiontoshareholdersthroughsharerepurchasesanddividendsinfiscal2025[12]FutureOutlook−Forfiscal2026,thecompanyanticipatesorganicnetsalestodeclineby21.9 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,withreportedEPSexpectedtobe12.90, with reported EPS expected to be 12.33-12.63[16]−Operatingcashflowisforecastedtobe12.63 [16] - Operating cash flow is forecasted to be 2.7-2.8billionforfiscal2026,withcapitalexpendituresof2.8 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]