Fiscal 2026 Outlook Update - The company updated its fiscal year 2026 outlook, projecting organic net sales to decline by 6% to 4% for the enterprise and 4% to 2% for the beer business [11] - The company anticipates a reported operating income growth of 666% to 686%, but a comparable operating income decline of 11% to 9% [11] - Corporate expense is expected to be $225 million [11] - The company forecasts reported EPS of $10.77 to $11.07 and comparable EPS of $11.30 to $11.60 [11] - Operating cash flow is projected to be $2.5 billion to $2.6 billion, with free cash flow estimated at $1.3 billion to $1.4 billion [11] Market and Consumer Trends - Ongoing U S consumer demand headwinds are impacting the business, with employment in 4,000+ calorie jobs remaining pressured [12] - Consumer sentiment remains volatile and depressed [12, 13] - High-end beer buy rates are declining due to ongoing consumer headwinds [14, 15] - The company's beer brands have higher levels of exposure to the Hispanic consumer, who are showing elevated concern about personal finances and the socioeconomic environment [17, 18, 19, 20] - Hispanic consumer high-end beer buy rates are down more than the total consumer [21, 22] Business Execution - The company is gaining distribution, shelf space, and volume share across the country, with mid-single-digit percentage growth in points of distribution and approximately 30,000 Shopper First Shelf resets [24] - The company has achieved approximately $445 million in beer cost savings from fiscal year 2024 through Q1 fiscal year 2026 [25]

Core Insights - Constellation Brands reported a revenue of $2.52 billion for the quarter ended May 2025, reflecting a year-over-year decline of 5.5% and an EPS of $3.22, down from $3.57 a year ago [1] - The reported revenue fell short of the Zacks Consensus Estimate of $2.57 billion, resulting in a surprise of -2.07%, while the EPS also missed the consensus estimate of $3.34 by -3.59% [1] Financial Performance Metrics - Net Sales for Wine and Spirits were reported at $280.5 million, significantly below the five-analyst average estimate of $297.74 million, marking a year-over-year decline of 27.9% [4] - Net Sales for Beer were $2.23 billion, slightly below the $2.27 billion average estimate, with a year-over-year change of -1.7% [4] - Operating Income for Wine and Spirits was reported at -$6 million, contrasting with the four-analyst average estimate of $12.38 million [4] - Operating Income for Beer was $873.4 million, compared to the average estimate of $899.7 million [4] - Operating Income for Corporate Operations and Other was -$57.5 million, slightly better than the average estimate of -$63.99 million [4] Stock Performance - Shares of Constellation Brands have returned -6.6% over the past month, while the Zacks S&P 500 composite has seen a +5.2% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Core Viewpoint - Constellation Brands is expected to report a decline in quarterly earnings and revenues, indicating potential challenges in its business performance [1][2]. Earnings Estimates - Analysts predict quarterly earnings of $3.37 per share, a decrease of 5.6% year-over-year [1]. - Revenue is forecasted at $2.57 billion, reflecting a year-over-year decrease of 3.4% [1]. - The consensus EPS estimate has been revised down by 0.5% in the last 30 days [2]. Key Metrics - Estimated 'Net Sales- Wine and Spirits' is projected at $297.74 million, a significant decline of 23.5% year-over-year [5]. - 'Net Sales- Beer' is expected to reach $2.27 billion, showing a minimal decrease of 0.1% year-over-year [5]. - 'Operating Income- Wine and Spirits' is anticipated to be $12.38 million, down from $59.70 million in the same quarter last year [5]. - 'Operating Income- Beer' is projected at $899.70 million, compared to $941.60 million reported in the same quarter last year [6]. Stock Performance - Shares of Constellation Brands have decreased by 10.2% over the past month, contrasting with a 6% increase in the Zacks S&P 500 composite [7]. - The company holds a Zacks Rank 3 (Hold), suggesting it is expected to perform in line with the overall market in the near future [7].