Core Viewpoint - Constellation Brands reported a decline in revenue and earnings per share (EPS) for the quarter ended November 2025, indicating potential challenges in its financial performance [1]. Financial Performance - Revenue for the quarter was $2.22 billion, down 9.8% year-over-year, but exceeded the Zacks Consensus Estimate of $2.18 billion by 2.18% [1]. - EPS for the quarter was $3.06, compared to $3.25 a year ago, missing the consensus estimate of $2.65 [1]. Key Metrics - Net Sales for Wine and Spirits were $213.1 million, significantly above the average estimate of $170.25 million, but represented a year-over-year decline of 50.6% [4]. - Net Sales for Beer were $2.01 billion, matching the average estimate, with a slight year-over-year decrease of 1.1% [4]. - Operating Income for Wine and Spirits was $33.7 million, exceeding the estimate of $10.85 million [4]. - Operating Income for Beer was $763.5 million, surpassing the average estimate of $724.82 million [4]. - Corporate Operations and Other reported an Operating Income of -$58.3 million, better than the estimated -$61.78 million [4]. Stock Performance - Shares of Constellation Brands have returned +0.2% over the past month, underperforming the Zacks S&P 500 composite's +1.2% change [3]. - The stock currently holds a Zacks Rank 4 (Sell), suggesting potential underperformance in the near term [3].

Group 1 - The core point of the article highlights that Constellation Brands, the maker of Corona, is facing challenges due to economic stress among its Hispanic consumer base and a weaker construction market, which are negatively impacting beer demand [1] Group 2 - The economic stress affecting a significant segment of Hispanic consumers is identified as a key factor contributing to the decline in beer demand [1] - The weaker construction market is also noted as a contributing factor to the reduced demand for beer [1]

Group 1 - Constellation Brands reported third-quarter sales and profit above Wall Street estimates [1] - The growth was driven by steady demand for Modelo Especial and Corona beer brands [1]

Group 1 - Constellation Brands reported lower third-quarter sales, primarily due to lagging beer sales amid weak consumer sentiment [1] - The decline in sales is attributed to a pullback in spending from Hispanic drinkers, influenced by the Trump administration's immigration crackdown [1] - Overall, the company is facing challenges in maintaining its market position as consumer behavior shifts [1]

Constellation Brands, Inc. (NYSE:STZ) shares climbed in Wednesday's extended trading after the company released its third quarter earnings report, beating estimates on the top and bottom lines. Here's a look at the key figures from the quarter. STZ stock is moving. Watch the price action here.The Details: Constellation Brands reported quarterly earnings of $3.06 per share, which beat the analyst consensus estimate of $2.64, according to Benzinga Pro data.Quarterly revenue came in at $2.22 billion, which bea ...

Financial Performance - Reported net sales for Q3 FY2026 were $2,223 million, a decline of 10% year-over-year[1] - Comparable diluted EPS for Q3 FY2026 was $3.06, down 6% from the previous year[1] - Fiscal 2026 reported EPS outlook is updated to $9.72 - $10.02, with comparable EPS outlook affirmed at $11.30 - $11.60[6] - Consolidated net sales for the three months ended November 30, 2025, were $2,222.8 million, a decrease of 10% compared to $2,463.8 million for the same period in 2024[46] - Gross profit for the three months ended November 30, 2025, was $1,183.2 million, down 8% from $1,284.3 million in the prior year[46] - Operating income for the three months ended November 30, 2025, was $692.0 million, a 13% decline from $793.0 million in 2024, while operating margin decreased to 31.1% from 32.2%[46] - Net income attributable to CBI for the three months ended November 30, 2025, was $502.8 million, an 18% decrease from $615.9 million in 2024[48] - Comparable EPS for the three months ended November 30, 2025, was $3.06, a 6% decline from $3.25 in the same period last year[48] - The company reported a significant increase in operating income for the nine months ended November 30, 2025, reaching $2,279.8 million, compared to $505.2 million in 2024, marking a 351% increase[46] - The company experienced a 10% decrease in gross profit for the nine months ended November 30, 2025, totaling $3,759.8 million, down from $4,199.9 million in 2024[46] Shareholder Returns - The company returned nearly $1.4 billion to shareholders through share repurchases and maintained a ~30% dividend payout ratio[5] - The company declared cash dividends of $1.02 per common share for the three months ended November 30, 2025, slightly up from $1.01 in the same period of 2024[34] - Dividends paid during the nine months ended November 30, 2025, totaled $(538.8) million, slightly down from $(551.3) million in the previous year[38] Cash Flow and Liquidity - Year-to-date operating cash flow reached $2.1 billion, with free cash flow of $1.45 billion[6] - Cash and cash equivalents increased to $152.4 million as of November 30, 2025, compared to $68.1 million as of February 28, 2025, an increase of 123.4%[32] - The company reported a net cash provided by operating activities of $2,106.2 million for the nine months ended November 30, 2025, compared to $2,557.5 million for the same period in 2024, a decrease of 17.6%[36] - For the nine months ended November 30, 2025, net cash provided by operating activities was reported at $2.106 billion, down from $2.557 billion in the prior year[71] Business Segments Performance - The Beer Business gained dollar and volume share, outperforming the total beverage alcohol category by nearly 0.5 percentage points[6] - Wine and Spirits net sales declined 51%, driven by a 70.6% decrease in shipment volumes due to divestitures[15] - Beer net sales for the three months ended November 30, 2025, were $2,009.7 million, a decline of 1% from $2,032.4 million in 2024[41] - Wine and Spirits net sales for the three months ended November 30, 2025, were $213.1 million, a significant drop of 51% compared to $431.4 million in 2024[41] - Wine net sales dropped 53% to $174.5 million for the three months ended November 30, 2025, compared to $374.6 million in 2024[46] - Spirits net sales decreased by 32% to $38.6 million for the three months ended November 30, 2025, down from $56.8 million in the previous year[46] Strategic Initiatives - The company anticipates potential impacts from its acquisition and divestiture strategies, including the 2025 Wine Divestitures, which may affect future performance[30] - The company completed the sale of the SVEDKA brand on January 6, 2025, and the 2025 Wine Divestitures on June 2, 2025, impacting net sales[40] - The company recognized costs related to the 2025 Restructuring Initiative aimed at optimizing business performance, with an estimated cost of $73 million for the year ending February 28, 2026[54][66] - The company incurred strategic business reconfiguration costs of $6 million as part of its efforts to streamline operations[66] Asset and Liability Management - Total current assets decreased to $2,909.1 million as of November 30, 2025, from $3,716.4 million as of February 28, 2025, a decline of 21.7%[32] - Total liabilities decreased to $13,683.1 million as of November 30, 2025, from $14,517.5 million as of February 28, 2025, a reduction of 5.8%[32] - Cash and cash equivalents at the end of the period were $152.4 million, an increase from $73.7 million at the end of the previous year[38] Impairments and Losses - The company experienced a goodwill impairment of $2,250.0 million in the nine months ended November 30, 2024, which significantly impacted net income for that period[34] - The company reported a goodwill impairment related to negative trends in the Wine and Spirits business, impacting financial results significantly[58] - A net loss of $1.1 million was recorded from the sale of assets for the three months ended November 30, 2025, while a net gain of $3.0 million was reported for the nine months ended November 30, 2024[59] - The company recognized a loss of $20.7 million related to foreign currency as a result of tax examinations and assessments[59] Future Guidance - Free cash flow guidance for the year ending February 28, 2026, is projected to be between $1.3 billion and $1.4 billion, with net cash provided by operating activities estimated at $2.5 billion to $2.6 billion[71] - Operating income (GAAP) guidance for the year ending February 28, 2026, is set between $2.685 billion and $2.756 billion, reflecting a significant increase from the previous year[66]

Group 1: Financial Results - Constellation Brands, Inc. reported its third quarter fiscal 2026 financial results on January 7, 2026 [1] - A conference call to discuss the financial results and outlook will be hosted by the CEO and CFO on January 8, 2026 [1] 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 [2] - The company's mission is to build brands that people love, focusing on elevating human connections and anticipating market trends [2] Group 3: Product Portfolio - The company offers a high-end, imported beer portfolio including Corona Extra, Modelo Especial, and other brands like Pacifico and Victoria [3] - Its wine brands include The Prisoner Wine Company, Robert Mondavi Winery, Kim Crawford, and others [3] - The craft spirits brands feature Casa Noble Tequila and High West Whiskey [3] Group 4: Sustainability and ESG Strategy - As an agriculture-based company, Constellation Brands emphasizes sustainable and responsible operations [4] - The company's ESG strategy focuses on environmental stewardship, community investment, and promoting responsible beverage alcohol consumption [4]

Core Viewpoint - Constellation Brands, Inc. is a significant player in the beverage industry, focusing on beer, wine, and spirits, with a diverse portfolio of well-known brands and a presence in multiple countries [1] Stock Performance - The average target price for Constellation Brands has increased slightly from $156.57 to $158, indicating a modest positive sentiment among analysts in the short term [2] - The current target price is lower than last year's $188.11, reflecting a more cautious outlook over the past year [2] Future Outlook - Despite challenges anticipated in 2025, Constellation Brands is focusing on cost-cutting and expects a resurgence in beer demand among Hispanic consumers [3] - Analyst Lauren Lieberman from Barclays has set a price target of $281, indicating optimism about the company's future performance [3] Earnings Report - The upcoming third-quarter earnings report is expected to show strong performance with a double-beat in revenue and earnings per share, which could positively influence analyst target prices and investor sentiment [4] Strategic Initiatives - Market trends and strategic initiatives, such as new product launches or partnerships, are crucial factors that could impact Constellation Brands' stock outlook as the company navigates its challenges [5]

Core Viewpoint - Constellation Brands is focusing on cost reductions and anticipating a rebound in Hispanic beer demand to enhance its earnings after a challenging 2025 and several forecast downgrades [1] Group 1 - The company experienced a difficult year in 2025, leading to multiple cuts in earnings forecasts [1] - Constellation Brands is implementing cost-cutting measures as part of its strategy to improve financial performance [1] - There is an expectation for a recovery in demand for beer among Hispanic consumers, which the company is betting on to boost earnings [1]

Group 1 - U.S. stock futures are trading mixed, with several companies expected to report earnings today [1] - Albertsons Companies Inc. is anticipated to post quarterly earnings of 68 cents per share on revenue of $19.17 billion, with shares gaining 1.1% to $17.30 in after-hours trading [1] - Penguin Solutions Inc. reported quarterly earnings of 49 cents per share, exceeding the analyst consensus estimate of 44 cents, and quarterly sales of $343.071 million, beating the estimate of $338.758 million, leading to a 6.7% increase in shares to $22.99 [1] - UniFirst Corp. is expected to report quarterly earnings of $2.06 per share on revenue of $615.25 million, with shares rising 2.3% to $207.80 in after-hours trading [1] - AAR Corp. posted better-than-expected second-quarter results and forecasts third-quarter sales between $813.840 million and $827.404 million, surpassing market estimates of $793.438 million, resulting in a 5.6% increase in shares to $94.50 [1] - Constellation Brands Inc. is expected to report quarterly earnings of $2.64 per share on revenue of $2.16 billion, with shares rising 0.5% to $144.37 in after-hours trading [1]