Core Viewpoint - Constellation Brands (STZ) is anticipated to report a year-over-year decline in earnings and revenues for the quarter ended August 2025, which could significantly influence its stock price depending on the actual results compared to estimates [1][3]. Earnings Expectations - The upcoming earnings report is expected to show earnings of $3.37 per share, reflecting a 22% decrease year-over-year, with revenues projected at $2.46 billion, down 15.8% from the previous year [3]. - The consensus EPS estimate has been revised down by 6.46% over the last 30 days, indicating a reassessment by analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that the Most Accurate Estimate matches the Zacks Consensus Estimate, resulting in an Earnings ESP of 0%, suggesting no recent differing analyst views [12]. - The stock currently holds a Zacks Rank of 5, which complicates the prediction of an earnings beat [12][13]. Historical Performance - In the last reported quarter, Constellation Brands was expected to post earnings of $3.34 per share but delivered only $3.22, resulting in a surprise of -3.59% [14]. - Over the past four quarters, the company has beaten consensus EPS estimates twice [15]. Market Reaction Factors - An earnings beat or miss alone may not dictate stock movement, as other factors can influence investor sentiment [16]. - While betting on stocks expected to beat earnings can increase success odds, Constellation Brands does not currently appear to be a strong candidate for an earnings beat [18].

All right, two minutes before we get to the final opening bell of the week. Let's get in a mad dash. >> What do you do with the best restaurant company.Uh, Olive Garden. Fantastic margins. They do have a long, you know, you know, this long run.It's not doing so much steak. >> Yeah. >> But I would tell you this thing went down hard on a miss.3% yield. It is still the flagship. I think it can come back.It can come back, but you have to have some dimmunition in food prices because there's certainly no there's ...

Group 1 - SNDL Inc. reported Q2 2025 net sales of $244.8 million, a 7.3% year-over-year increase, driven by a 17.4% growth in its cannabis business and a recovery in its liquor retail division [1] - The company achieved an operating income of $5.0 million, with a gross profit of $67.6 million, reflecting a 16.2% increase and a gross margin of 27.6% [1] - SNDL Inc. had no debt and $208.2 million in unrestricted cash at the end of the quarter, despite a negative free cash flow of $7.9 million due to working capital investments and CAPEX [1] Group 2 - CEO Zach George highlighted that Q2 marked the first positive operating income and net earnings for SNDL Inc. [2] - Strategic initiatives included a $32.2 million agreement to acquire 32 cannabis outlets, the launch of the Rise Rewards loyalty program, and a $9.5 million CAPEX investment for retail expansion [2] - The company has increased exports to the UK and EU while developing its U.S. strategy, positioning itself as one of the best marijuana stocks [2]

Core Insights - A total of 1526 A-share listed companies disclosed their 2025 semi-annual reports, with 921 companies achieving year-on-year net profit growth, representing approximately 60.35% [1] - The electronic, transportation, agriculture, automotive, machinery, non-ferrous metals, home appliances, and social services sectors showed strong performance [1] Group 1: Company Performance - Among the 1526 companies, 761 reported net profit growth exceeding 10%, 501 exceeded 30%, 359 exceeded 50%, 210 exceeded 100%, and 66 exceeded 300% [1] - Notable companies with significant net profit growth include Shumatech, XianDa Co., Zhimingda, Rongzhi Rixin, Shijia Photon, and Suotong Development [1] - 567 companies reported net profits over 100 million yuan, 180 over 500 million yuan, 88 over 1 billion yuan, 19 over 5 billion yuan, and 8 over 10 billion yuan [2] - China Mobile, Kweichow Moutai, CATL, China Telecom, Sinopec, Industrial Fulian, Muyuan Foods, Huaneng International, and Luoyang Molybdenum were among the top net profit earners [2] Group 2: Industry Performance - The electronic, transportation, agriculture, automotive, machinery, non-ferrous metals, home appliances, and social services sectors showed strong revenue performance [3] - In the electronic sector, companies in consumer electronics and semiconductors performed exceptionally well [3] - In agriculture, companies in breeding and animal health sectors showed significant performance improvements [3] - Muyuan Foods achieved revenue of 764.63 billion yuan, a year-on-year increase of 34.46%, and net profit of 107.9 billion yuan, a year-on-year increase of 952.92% [3] Group 3: Dividend Announcements - A total of 265 A-share listed companies announced their 2025 mid-term dividend plans [4] - 188 companies plan to distribute cash dividends exceeding 1 yuan per 10 shares, 77 companies exceeding 3 yuan, 38 companies exceeding 5 yuan, and 15 companies exceeding 10 yuan [4] - Notable companies with high cash dividends include JiBit, Ninebot, Shuoshi Bio, China Mobile, Dongpeng Beverage, Siwei Liekong, Dong'a Ejiao, and Aimeike [4] - Among the 265 companies, 111 plan to distribute over 100 million yuan, 77 over 200 million yuan, and 37 over 500 million yuan in dividends [4] Group 4: Specific Company Announcements - China CNR announced revenue of 1197.58 billion yuan, a year-on-year increase of 32.99%, and net profit of 72.46 billion yuan, a year-on-year increase of 72.48% [5] - The company plans to distribute cash dividends of 31.57 billion yuan [5]

Financial Data and Key Metrics Changes - SNDL reported net revenue of $245 million for Q2 2025, reflecting a 7.3% increase year over year [8] - Gross profit reached $67.6 million, a 16.2% growth year over year, matching the record gross margin of 27.6% achieved in Q1 2025 [9] - Adjusted operating income was $5.8 million, marking a 226% increase year over year, with the first positive operating income in the company's history [10] Business Segment Data and Key Metrics Changes - The cannabis retail segment achieved net revenue of $84.4 million, representing 11% year over year growth, driven by an 8.2% increase in same store sales [16] - The liquor retail segment delivered net revenue of $141.9 million, marking a 1% year over year increase, supported by a 2.7% growth in same store sales [14] - Cannabis operations segment reported net revenue of $35.8 million, reflecting a 43% growth compared to the prior year, driven by edibles and international sales [17] Market Data and Key Metrics Changes - The cannabis business expanded at nearly three times the rate of the Canadian recreational market, outperforming direct competitors [4] - International sales for cannabis amounted to $3.8 million in Q2 2025, indicating growth in export revenues [48] Company Strategy and Development Direction - The company focuses on three strategic pillars: growth, profitability, and people, with a commitment to expanding its cannabis retail footprint in Canada [19][20] - SNDL is actively monitoring the U.S. market while expanding its international presence, serving patients in the UK and Continental Europe [6] - The company aims to achieve sustainable long-term value for shareholders through operational improvements and cost management [5] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued growth and operational efficiency, despite challenges in the broader market [5][21] - The company is optimistic about international sales growth, although it will be off a slow base [29] - Management highlighted the importance of maintaining a strong balance sheet with no debt and over $200 million in unrestricted cash [6] Other Important Information - The company achieved a $5 million reduction in overhead expenses year over year, despite inflationary pressures [22] - The Rise Rewards loyalty program is in early stages, with a six-figure membership count [30] Q&A Session Summary Question: International sales growth and domestic sales prioritization - Management indicated that international sales growth does not detract from focus on the Canadian market and expects meaningful growth in the second half of the year [29] Question: Update on the Rise Rewards loyalty program - Management confirmed progress in member sign-ups, with announcements planned as key milestones are reached [30] Question: Potential expansion of cultivation footprint - Management noted that current cultivation efforts meet about 15% of total biomass needs and are cautious about capital investments in new facilities [32] Question: Satisfaction with current supply chain and margins - Management acknowledged early days in Europe with high margins but noted volatility and external shocks affecting supply chains [38] Question: Commentary on liquor segment growth - Management attributed liquor segment growth to effective banner management and consumer engagement, particularly in the Wine and Beyond banner [44] Question: Clarification on wholesale revenue for cannabis - Management disclosed that international sales for cannabis amounted to $3.8 million in Q2 2025 [48] Question: Aspirations for market share in Canadian recreational sales - Management expressed a focus on profitable growth rather than solely increasing market share, acknowledging the oligopolistic nature of the market [51] Question: Update on U.S. assets and consolidation - Management indicated that consolidation of U.S. assets is pending the resolution of ongoing legal processes [53] Question: Management's role in Parallel operations - Management clarified that SNDL is not engaged in plant-touching activities in the U.S. to maintain compliance with NASDAQ [57]

Financial Performance - SNDL achieved its first profitable quarter with approximately $6 million in Adjusted Operating Income [17] - Net revenue increased by 73% year-over-year to $245 million [14] - Gross profit increased by 162% year-over-year to $676 million [14] - Adjusted Operating Income increased by 2263% year-over-year to $58 million [14] - Free Cash Flow decreased by 407% year-over-year to negative $79 million, driven by growth investments [14, 15] Segment Performance - Liquor Retail net revenue increased by 10% year-over-year to $1419 million [34] - Cannabis Retail net revenue increased by 11% year-over-year to $844 million [37] - Cannabis Operations net revenue increased by 43% year-over-year to $358 million [43] Strategic Highlights - Cannabis Retail same-store sales grew by 82% [51] - Liquor Retail same-store sales grew by 27% [51] - Cannabis Operations revenue growth was driven by the Indiva acquisition and international sales [52]

Core Insights - SNDL Inc. achieved positive operating income and net earnings for the first time in its history during Q2 2025, marking a significant milestone in its strategic improvement agenda [4][10][12] - The company experienced growth across all operating segments, particularly in its Cannabis business, which expanded at nearly three times the rate of the Canadian recreational market [5][10] - SNDL's strong balance sheet, with no debt and $208.2 million in unrestricted cash, positions it well for pursuing high-return growth opportunities [7][10] Financial Performance - Net revenue for Q2 2025 was $244.8 million, a 7.3% increase from Q2 2024, driven by a 17.4% growth in the combined Cannabis business [9][10] - Gross profit reached $67.6 million, reflecting a 16.2% increase year-over-year, with a gross margin of 27.6%, up 2.1 percentage points from the previous year [10][12] - Operating income was $5.0 million, with an adjusted operating income of $5.8 million after accounting for restructuring charges [10][12] Business Segment Highlights - **Cannabis Retail**: Net revenue increased by 11.0% to $84.4 million, with operating income growing by 106.6% to $8.1 million [14][20] - **Cannabis Operations**: Reported a 43.5% increase in net revenue to $35.8 million, with operating income of $2.3 million, a significant turnaround from a loss in the previous year [22][26] - **Liquor Retail**: Net revenue rose by 1.0% to $141.9 million, with same-store sales growth of 2.7% despite operating five fewer stores than the previous year [16][18] Strategic Initiatives - The company entered into an agreement to acquire 32 cannabis retail stores for $32.2 million, expected to close in Q3 2025 [11] - SNDL launched the Rise Rewards loyalty program aimed at enhancing customer engagement and driving sales [11] - A formal strategic review was initiated to evaluate SNDL's exposure to U.S. multi-state licensed cannabis enterprises and its current exchange listings [11] Investment Portfolio - As of June 30, 2025, SNDL's investment portfolio had a carrying value of $406.1 million, with a significant portion allocated to SunStream Bancorp Inc. [26] - The investment portfolio generated a positive operating income of $1.8 million during Q2 2025, primarily from interest earned [26] - The company holds an 8.2% ownership stake in High Tide, with a total of 6,622,645 shares purchased [26]

Canada's boycott of US spirits slashed American liquor sales — but it’s also hurting Canadian brands https://t.co/Gp5S6sWiFR ...

Financial Performance - Constellation Brands reported quarterly earnings of $3.22 per share, missing the Zacks Consensus Estimate of $3.34 per share, and down from $3.57 per share a year ago, representing an earnings surprise of -3.59% [1] - The company posted revenues of $2.52 billion for the quarter ended May 2025, missing the Zacks Consensus Estimate by 2.07%, and down from $2.66 billion year-over-year [2] - Over the last four quarters, Constellation Brands has surpassed consensus EPS estimates two times and topped consensus revenue estimates just once [2] Stock Performance - Constellation Brands shares have lost approximately 26.4% since the beginning of the year, contrasting with the S&P 500's gain of 5.5% [3] - The current status of estimate revisions translates into a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market in the near future [6] Future Outlook - The current consensus EPS estimate for the coming quarter is $4.07 on revenues of $2.68 billion, and for the current fiscal year, it is $12.68 on revenues of $9.44 billion [7] - The outlook for the Beverages - Alcohol industry is positive, currently ranking in the top 32% of over 250 Zacks industries, suggesting that stocks in the top 50% outperform those in the bottom 50% by more than 2 to 1 [8]

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].