Core Insights - Molson Coors is undergoing a transformation journey aimed at returning the company to growth by changing its investment, marketing, and operational strategies [2] Group 1 - The company has completed its revitalization plan and is now focused on accelerating growth while simplifying its operations [2] - The goal is to achieve sustainable growth in both top and bottom lines [2]

Core Viewpoint - Molson Coors anticipates a significant decline in annual profit for 2026 due to increased aluminum costs and reduced consumer spending, particularly among price-sensitive customers [1] Financial Performance - The company forecasts adjusted earnings per share for 2026 to decrease by 11% to 15%, contrasting with previous estimates of a 1.9% increase to $5.48 [1] - For the fourth quarter, net sales were reported at $2.66 billion, falling short of analysts' expectations of $2.71 billion [1] - Underlying earnings for the quarter were $1.21 per share, exceeding estimates of $1.16 per share [1] Cost and Revenue Outlook - A spike in aluminum costs has led to an 8.1% increase in the cost of goods sold per hectoliter for Molson Coors, which heavily relies on aluminum cans for packaging [1] - The CFO indicated that commodity inflation will continue to negatively impact profitability in 2026, despite expectations for improved revenue trends [1] - Projected net sales for 2026 are expected to range from a decline of 1% to an increase of 1% compared to the previous year, while analysts had anticipated a 0.1% drop [1] Market Trends - There is a noted shift in alcohol demand as health-conscious consumers are increasingly opting for non-alcoholic drinks and energy beverages, a trend further influenced by the adoption of GLP1 weight-loss drugs [1] - Younger consumers, particularly Gen Z, are reducing their consumption of beer and spirits [1]

Core Viewpoint - Vita Coco's stock experienced a decline despite a revenue beat in its fourth quarter earnings report, attributed to a significant drop in private-label sales and high valuation concerns [1][6]. Group 1: Financial Performance - In the fourth quarter, Vita Coco reported a revenue growth of 0.5% to $128 million, surpassing expectations, while earnings per share were $0.09, missing expectations by $0.04 [2]. - For the full year, sales increased by 18% to $610 million, and adjusted EBITDA rose by 32% to $98 million [4]. - Management forecasts revenue for 2026 to be between $680 million and $700 million, indicating a projected revenue growth of 13.1% at the midpoint, with adjusted EBITDA expected to grow by 27.6% [4]. Group 2: Sales Dynamics - The modest revenue growth was primarily impacted by a 52% decline in U.S. private-label sales, which are lower-margin and subject to volatility [3]. - Other segments, including branded Vita Coco water and international private-label sales, showed steady growth [3]. Group 3: Market Position and Valuation - Vita Coco remains the leading coconut water brand in the U.S., holding a market share of 41% to 42% as of 2025, with coconut water sales in the U.S. growing by 21.8% last year [7]. - The stock's pullback may be linked to its high valuation, trading at 49 times earnings prior to the earnings report, following an 80% rally over the past six months [6].

Core Insights - Coca-Cola Consolidated, Inc. reported record revenue, gross profit, and operating income for fiscal year 2025, highlighting strong performance and effective execution in the marketplace [4][3] - The company experienced a 4.6% increase in volume for the fourth quarter of 2025 and a 0.3% increase for the fiscal year, with the fourth quarter benefiting from an additional selling day [4][5] - Net sales rose by 9.0% to $1.9 billion in the fourth quarter and by 4.8% to $7.2 billion for the fiscal year, driven by pricing actions and strong volume performance [5][6] Financial Performance - Gross profit for the fourth quarter of 2025 was $754.2 million, an increase of 8.1% compared to the previous year, while gross margin decreased to 39.6% due to rising aluminum costs [8][6] - Income from operations for the fourth quarter was $242.1 million, up 10.7%, and for the fiscal year, it reached $950.7 million, a 3.3% increase [10][6] - Net income for the fourth quarter was $137.3 million, down 23.3% from the previous year, while adjusted net income increased slightly to $157.8 million [11][12] Beverage Sales - Sparkling beverage sales increased by 6.4% in the fourth quarter and 3.5% for the fiscal year, driven by multi-pack sales in large retail channels [7][5] - Still beverage sales saw a 10.0% increase in the fourth quarter and a 6.1% increase for the fiscal year, reflecting strong performance across various brands [5][7] Expenses and Investments - Selling, delivery, and administrative expenses rose by 6.9% in the fourth quarter, primarily due to labor costs and investments in front-line teammates [9][10] - The company invested approximately $312 million in capital expenditures for fiscal year 2025, with expectations of similar investments in fiscal year 2026 [13][12] Cash Flow and Shareholder Returns - Cash flows from operations for fiscal year 2025 were $931.9 million, an increase from $876.4 million in the previous year [13][12] - The company returned approximately $2.7 billion to shareholders through share repurchases and dividends during fiscal year 2025 [13][12]

Core Insights - The company announced an Americas Restructuring Plan aimed at creating a more agile segment and facilitating future growth, resulting in charges of $28.7 million primarily for severance and post-employment benefits [1] Financial Performance - The reported net loss attributable to MCBC led to a diluted per share calculation using a share count of 199.1 million shares for the year ended December 31, 2025 [2] - A partial goodwill impairment loss of $3,645.7 million was recorded, with $77.5 million attributable to non-controlling interests (NCI) [2] - Intangible impairment losses of $273.9 million were recorded, with $18.9 million attributable to NCI, due to triggering events in the Americas and EMEA&APAC segments [2] Restructuring and Charges - The total restructuring charges for the Americas Restructuring Plan are expected to be approximately $35 million, at the low end of the previously communicated range of $35 million to $50 million, with remaining charges predominantly employee-related [2] - In the first quarter of 2025, the company incurred an incremental accelerated depreciation of $17.9 million due to the wind down or sale of certain U.S. craft businesses [2] Investments - The company made an investment in Fevertree Drinks plc, holding a minority interest, and recorded an unrealized gain of $31.7 million from the change in fair value of this investment during the year ended December 31, 2025 [2] Earnings Adjustments - Adjustments to arrive at underlying per diluted share and underlying income per diluted share for the year ended December 31, 2025, used a share count of 199.8 million shares, leading to discrepancies in earnings per share totals [2] - The company recorded $60.7 million of income attributable to NCI related to changes in the redemption value of certain redeemable NCI during the year ended 2025 [2]

Core Viewpoint - Growth stocks are appealing due to their potential for above-average financial growth, but identifying those that can fulfill their potential is challenging [1] Group 1: Company Overview - Ambev (ABEV) is currently recommended as a growth stock by the Zacks Growth Style Score system, which evaluates a company's real growth prospects beyond traditional metrics [2] - The company has a favorable Growth Score and a top Zacks Rank, indicating strong investment potential [2] Group 2: Earnings Growth - Ambev's historical EPS growth rate is 1.3%, but projected EPS growth for this year is 2.8%, significantly outperforming the industry average of 1.1% [4] Group 3: Asset Utilization - Ambev has an asset utilization ratio (sales-to-total-assets ratio) of 0.62, indicating it generates $0.62 in sales for every dollar in assets, which is higher than the industry average of 0.52 [5] Group 4: Sales Growth - The company's sales are expected to grow by 13.3% this year, contrasting sharply with the industry average of -0.1% [6] Group 5: Earnings Estimate Revisions - The current-year earnings estimates for Ambev have been revised upward by 2.8% over the past month, reflecting a positive trend in earnings estimate revisions [7] Group 6: Investment Potential - Ambev has achieved a Growth Score of B and a Zacks Rank of 2 due to positive earnings estimate revisions, suggesting it is a solid choice for growth investors [9]

Core Insights - Fomento Economico Mexicano, S.A.B. de C.V. (FMX) is expected to report fourth-quarter 2025 earnings on February 25, with anticipated growth in both revenue and earnings [1][9] Revenue and Earnings Estimates - The Zacks Consensus Estimate for FMX's fourth-quarter revenues is $12.4 billion, reflecting a growth of 24.6% compared to the same quarter last year [1][9] - The consensus estimate for quarterly earnings is $1.53 per share, a significant increase from 46 cents reported in the previous year [2][9] - The earnings estimate has decreased by one cent in the past 30 days [2] Business Growth Factors - FEMSA is experiencing growth across its business units, supported by effective growth strategies and investments in digital and technology-driven initiatives [3] - The Digital@FEMSA unit is focused on creating a digital and financial ecosystem, with successful products like the OXXO digital wallet and loyalty program [3] - The company is expanding its footprint in the specialized distribution industry, which is part of its strategy to invest in adjacent businesses and leverage capabilities across different markets [4] Cost Pressures - FEMSA is facing cost pressures from inflation, rising labor expenses, and supply-chain inefficiencies, which may negatively impact profitability [5] Earnings Prediction - The company's Earnings ESP is +3.92%, and it holds a Zacks Rank of 3, indicating a potential earnings beat [6] Market Performance and Valuation - FEMSA's shares have increased by 8.4% over the past three months, while the industry has grown by 12.5% [7] - The company is trading at a forward 12-month P/E multiple of 24.64X, which is higher than the industry average of 20.08X [7]

Core Viewpoint - Ambev (ABEV) has been upgraded to a Zacks Rank 2 (Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system is based on changes in a company's earnings picture, specifically tracking the Zacks Consensus Estimate for EPS from sell-side analysts [1][2]. - Changes in future earnings potential, as indicated by earnings estimate revisions, are strongly correlated with near-term stock price movements [4]. - Institutional investors utilize earnings estimates to determine the fair value of a company's shares, leading to stock price movements based on their investment actions [4]. Ambev's Earnings Outlook - The Zacks Consensus Estimate for Ambev indicates earnings of $0.19 per share for the fiscal year ending December 2026, unchanged from the previous year [8]. - Over the past three months, analysts have raised their earnings estimates for Ambev by 2.8% [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 (Strong Buy) stocks historically generating an average annual return of +25% since 1988 [7]. - The upgrade of Ambev to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [10].

Core Insights - The company attributes its record 2025 performance to the transition of coconut water from a niche product to a mainstream global beverage category, achieving 22% retail growth in the U.S. and over 100% in Germany [1] Group 1: Growth Drivers - International expansion was a primary growth engine, contributing 29% of total company net sales growth in 2025, with significant brand share wins in the U.K. and Germany [1] - Performance in the U.S. was enhanced by a significant retail reset at Walmart in mid-November, which recovered previous distribution losses and relocated the brand to higher-traffic aisles [1] Group 2: Strategic Positioning - The company is shifting its strategic positioning towards 'active hydration,' aiming to compete directly with legacy sports drinks by emphasizing that coconut water contains three and a half times the electrolytes of leading competitors [1] Group 3: Operational Efficiency - Operational success was supported by an asset-light model and improved inventory management, enabling the company to navigate the supply chain challenges and tariff impacts faced in 2025 [1] - Branded growth of 26% offset a 19% decline in private label sales, which experienced regional contract losses at key retailers during the first half of the year [1]

Core Insights - Diageo Plc (DEO) is set to release its interim results for the first half of fiscal 2026 on February 25, facing challenges in North America and Asia Pacific, while showing strong performance in Europe, Latin America, and Africa [1][10] Group 1: Performance Overview - Diageo's first-quarter organic net sales were broadly flat despite positive volume growth, indicating regional and category shifts, particularly weakness in Chinese white spirits and softer U.S. spirits demand [2][3] - The company has experienced significant declines in key markets, especially in North America and Greater China, due to soft consumption trends and increased promotional intensity [3][4] - Management has indicated that fiscal 2026 performance will be weighted towards the second half, with expectations of weak organic net sales and operating profit trends in the first half [5][6] Group 2: Regional Performance - The Asia Pacific region has faced the most pressure, particularly in Greater China, where declines in baijiu consumption have negatively impacted performance [4] - Positive trends in India are expected to partially offset weaknesses in the Asia Pacific region [4] - In Europe, strong momentum in Guinness and resilient execution have contributed positively, despite a subdued spirits backdrop [8] - Latin America is benefiting from stabilizing consumer environments in Brazil and Mexico, with positive price/mix trends aiding results [9] Group 3: Market Trends and Valuation - Diageo has been experiencing solid business momentum, strong consumer demand, and market share gains, particularly in the spirits category [7] - The company's shares have risen by 9.1% over the past three months, outperforming the S&P 500 index's growth of 3.2% [10] - Diageo's forward 12-month P/E multiple is 14.88X, which is below the industry average of 16.89X and the S&P 500's average of 22.51X, indicating a relatively cheap valuation compared to the industry [14]