Key Takeaways STZ posted Q3 EPS and sales above estimates, even as both declined year over year on weak consumer demand.STZ's beer business outpaced the industry, aided by strong Pacifico and Victoria growth.STZ generated strong cash flow, funding dividends, buybacks and heavy investment in Mexico beer operations.Constellation Brands, Inc. (STZ) reported third-quarter fiscal 2026 results, wherein the top and bottom lines surpassed the Zacks Consensus Estimate. The company’s sales and earnings declined year ...

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]

ROCHESTER, N.Y., Jan. 07, 2026 (GLOBE NEWSWIRE) -- Constellation Brands, Inc. (NYSE: STZ), a leading beverage alcohol company, reported today its third quarter fiscal 2026 financial results. A conference call to discuss the financial results and outlook will be hosted by President and Chief Executive Officer, Bill Newlands, and Chief Financial Officer, Garth Hankinson, on Thursday, January 8, 2026 at 10:30 a.m. ET. Visit ir.cbrands.com to locate information for joining the conference call, or a live, liste ...

Artisan Partners, an investment management company, released its “Artisan Mid Cap Value Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the quarter, the fund’s Investor Class fund ARTQX returned 0.97%, Advisor Class fund APDQX posted a return of 0.98%, and Institutional Class fund APHQX returned 0.97%, compared to a 6.18% return for the Russell Midcap Value Index. Equity markets continued their rally in the third quarter as investors overlooked tariff concerns, driv ...

Constellation Brands, Inc. (STZ), headquartered in Victor, New York, produces, imports, markets, and sells beer, wine, and spirits. With a market cap of $25 billion, the company primarily markets beer under the Corona Extra, Corona Familiar, Corona Hard Seltzer, Corona Light, Corona Non-Alcoholic, Modelo Negra, Modelo Oro, Victoria, Vicky Chamoy, and Pacifico brands. The leading beverage alcohol company is expected to announce its fiscal third-quarter earnings for 2026 after the market closes on Wednesday, ...

Core Viewpoint - Constellation Brands, Inc. will report its financial results for the third quarter ended November 30, 2025, on January 7, 2026, with a conference call scheduled for January 8, 2026, to discuss the results and future outlook [1][2]. Group 1: Financial Reporting - The financial results will be posted on the company's investor relations website after the U.S. markets close on January 7, 2026 [1]. - A live conference call will take place on January 8, 2026, at 10:30 a.m. ET, featuring discussions led by the President and CEO, Bill Newlands, and the Executive Vice President and CFO, Garth Hankinson [1][2]. - Access to the conference call will be available via a dedicated phone line and a listen-only webcast on the investor relations website [2]. Group 2: Company Overview - Constellation Brands is a leading international producer and marketer of beer, wine, and spirits, with operations in the U.S., Mexico, New Zealand, and Italy [3]. - The company aims to build beloved brands and is recognized as one of the fastest-growing large consumer packaged goods (CPG) companies in the U.S. retail sector [3]. - The product portfolio includes high-end imported beers like Corona Extra and Modelo Especial, a variety of wines, and craft spirits such as Casa Noble Tequila and High West Whiskey [4]. Group 3: Sustainability and ESG Strategy - The company emphasizes sustainable and responsible operations as an agriculture-based entity, integrating its Environmental, Social, and Governance (ESG) strategy into its business model [5]. - Constellation Brands focuses on environmental stewardship, community investment, and promoting responsible alcohol consumption as part of its long-term business strategy [5].

Core Insights - Constellation Brands, Inc. (STZ) is a significant player in the U.S. beverage-alcohol market, with a market capitalization of $25.1 billion, producing and distributing well-known brands like Corona and Modelo [1][2] Company Overview - Founded in 1945 and headquartered in New York, STZ holds exclusive U.S. rights to several iconic beer brands, reinforcing its strong brand equity and market position [1] - As a large-cap stock, STZ's market cap exceeding $10 billion highlights its influence and dominance in the beverages-brewers industry [2] Stock Performance - STZ has experienced a significant decline, down 43.8% from its 52-week high of $245.31, and has underperformed the S&P 500 Index, which surged 6.5% over the past three months [3][4] - Over the past 52 weeks, STZ shares have fallen 42%, compared to a 12.9% decline in the S&P 500, and year-to-date, STZ is down 37.6% versus the S&P 500's 16.1% drop [4] Recent Financial Results - On October 6, STZ reported fiscal second-quarter results with net sales of $2.5 billion, a 15% year-over-year decline, but slightly above analyst expectations [5] - Adjusted EPS fell 16% to $3.63, beating the consensus estimate of $3.37, yet investor sentiment remained cautious, leading to a 2.5% drop in shares on the announcement day [5] Competitive Landscape - STZ has significantly lagged behind its competitor Anheuser-Busch InBev SA/NV (BUD), which saw a 13.9% increase over the past 52 weeks and a 23.1% gain year-to-date [6]

Core Viewpoint - Constellation Brands has experienced a decline in share price by approximately 7.8% since its last earnings report, raising questions about the potential for continued negative trends or a possible breakout before the next earnings release [1] Financial Performance - The company reported second-quarter fiscal 2026 results, with both sales and earnings surpassing the Zacks Consensus Estimate despite year-over-year declines due to weak consumer demand [2] - Comparable earnings per share (EPS) were $3.63, down 16% year over year, but exceeded the Zacks Consensus Estimate of $3.37. Reported EPS was $2.65, compared to a loss of $6.59 in the same quarter last year [3] - Net sales decreased by 15% year over year to $2.48 billion, slightly above the Zacks Consensus Estimate of $2.46 billion. Organic net sales fell by 8% year over year [3] Segment Performance - Sales in the beer segment fell 7% year over year to $2.35 billion, driven by an 8.7% decline in shipment volumes due to socioeconomic headwinds and distributor inventory rebalancing. Depletions decreased by 2.7%, with notable declines in Modelo Especial, Corona Extra, and Modelo Chelada brands, partially offset by growth in Pacifico and Victoria [4] - The wine and spirits segment saw a significant decline of 65% year over year in sales, dropping to $136 million, primarily due to a 76.4% decrease in shipment volumes linked to divestitures and changes in distributor obligations. However, depletions in this segment grew nearly 2% [5] Margin Analysis - Comparable operating income for the company was $886.2 million, down from $1,019.1 million in the prior-year quarter, attributed to weak performance across beer, wine, and spirits businesses [6] - The beer segment's operating income fell 12% year over year to $951.6 million, with an operating margin contraction of 200 basis points to 40.6%, influenced by higher costs of goods sold (COGS) and increased marketing expenses [7] - The wine and spirits segment reported an operating loss of $19.8 million, a significant decline from an operating income of $70.5 million in the previous year, with margins affected by divestitures and changes in distributor contractual obligations [8]

Core Insights - Constellation Brands is facing significant challenges in the beer market due to reduced consumer engagement and spending habits [1][2] - The company's stock has decreased nearly 36% year to date, contrasting with mixed performance from competitors [2] - A survey indicates that 80% of consumers are concerned about socioeconomic issues, impacting their spending on alcohol [2] Industry Trends - The overall beer industry is experiencing suppressed demand, particularly among Hispanic consumers who are going out less and consuming less at home [3][5] - California, as the largest market for Constellation, is seeing a decline in construction jobs, which traditionally correlate with beer consumption [3][4] - Broader demographic trends show that U.S. alcohol consumption has reached a near-90-year low, with only 54% of adults reporting drinking [5] Company Performance - Constellation Brands reported a 15% year-over-year drop in sales for the second quarter, with declines in key brands such as Modelo Especial and Corona Extra [6] - Some brands like Pacifico and Victoria showed growth, with increases of 14% and 19% respectively, but overall performance remains challenged [6] Economic and Policy Factors - Macro policy pressures, including immigration policies and tariffs, are contributing to increased production costs, with an estimated annualized cost of $90 million due to tariffs [5] - The company is also facing challenges related to slower rebuilding efforts in California following last year's fires, which are expected to impact consumption [4]

Core Insights - Constellation Brands, Inc. reported second-quarter fiscal 2026 results with both sales and earnings exceeding Zacks Consensus Estimates despite year-over-year declines due to weak consumer demand and socioeconomic challenges [1][2]. Financial Performance - Comparable earnings per share (EPS) were $3.63, a 16% decline year over year, but above the Zacks Consensus Estimate of $3.37. Reported EPS was $2.65 compared to a loss of $6.59 in the same quarter last year [2]. - Net sales decreased 15% year over year to $2.48 billion, surpassing the Zacks Consensus Estimate of $2.46 billion. Organic net sales fell 8% year over year [2]. - The stock price increased by 3.3% in after-market trading following the earnings release, reflecting better-than-expected performance [3]. Segment Performance - Beer segment sales declined 7% year over year to $2.35 billion, driven by an 8.7% drop in shipment volumes due to socioeconomic headwinds and distributor inventory rebalancing. Depletions fell 2.7%, with notable declines in Modelo Especial, Corona Extra, and Modelo Chelada brands, partially offset by growth in Pacifico and Victoria [4]. - Wine and spirits segment sales plummeted 65% year over year to $136 million, impacted by a 76.4% decline in shipment volumes due to divestitures and changes in distributor obligations, although depletions grew nearly 2% [5]. Margins and Operating Income - Comparable operating income was $886.2 million, down from $1,019.1 million in the prior-year quarter, attributed to weak performance in beer, wine, and spirits [6]. - Operating income for the beer segment fell 12% year over year to $951.6 million, with the operating margin contracting by 200 basis points to 40.6% due to higher costs and increased marketing expenses [7]. - The wine and spirits segment reported an operating loss of $19.8 million, a significant decline from an operating income of $70.5 million in the previous year, with margins affected by divestitures and contractual changes [8]. Financial Position and Cash Flow - As of August 31, 2025, cash and cash equivalents stood at $72 million, long-term debt was $9.8 billion, and total shareholders' equity was $7.5 billion. The company generated an operating cash flow of $1.5 billion and an adjusted free cash flow of $1.1 billion in Q2 FY26 [9]. - The company returned nearly $604 million to shareholders through buybacks and dividends, with a quarterly dividend of $1.02 per share announced [10]. Future Outlook - Constellation Brands forecasts operating cash flow of $2.5-$2.6 billion and free cash flow of $1.3-$1.4 billion for fiscal 2026, with planned capital expenditures of $1.2 billion [11]. - The company anticipates a decline in enterprise organic net sales of 4-6% and a decrease in beer segment net sales of 2-4%. The wine and spirits segment is expected to decline by 17-20% [12]. - Management projects a comparable EPS guidance of $11.30-$11.60 for fiscal 2026, with reported EPS expected to be $9.86-$10.16 [14].