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]

Core Viewpoint - Constellation Brands Inc is expected to report a decline in earnings and revenue for its fiscal third quarter, reflecting ongoing challenges in the wine and spirits industry [1] Financial Performance - Analysts predict earnings of $2.66 per share and revenue of $2.18 billion, marking a year-over-year decrease of 18.2% in earnings and 11.6% in revenue [1] - The company's previous results exceeded estimates despite a decline compared to the same quarter last year, leading to a fourth consecutive post-earnings gain for the stock [2] Stock Performance - The stock has rebounded slightly from a five-year low of $126.45, currently trading at $143.06, but remains down 35.8% year over year [3] - The stock has experienced an average earnings swing of 4.4% over the last two years, with options pricing in an 8.3% move for the upcoming earnings report [2] Market Sentiment - A positive reaction to the earnings report could trigger short covering, as short interest represents 7% of the stock's available float, although it has begun to unwind [5]

Core Viewpoint - Constellation Brands is expected to report a double-beat in revenue and earnings per share for the third quarter, indicating manageable tariff concerns [1] Earnings Estimates - Analysts predict third-quarter revenue of $2.16 billion, down from $2.46 billion in the same quarter last year [2] - Expected earnings per share for the third quarter is $2.64, a decrease from $3.25 in the previous year [2] - The company has beaten analyst estimates in seven of the last ten quarters for revenue and nine of the last ten quarters for earnings per share [2] Analyst Commentary - Needham analyst Gerald Pascarelli describes expectations for the third quarter as "pretty muted" [3] - Pascarelli maintains a Buy rating with a price target of $180, noting a projected 5% decline in depletions and a 3.5% year-over-year decline in beer shipments [4] - Overall revenue is estimated to decline by 12.2% year over year, with organic revenue expected to decrease by 3.3% [5] Management Guidance - Analysts do not anticipate significant changes in management's tone or guidance, with expectations that the company will reiterate its current outlook [6] - The Hispanic consumer market remains challenging, and there are no indications of a significant change in sentiment [6] Future Outlook - The company may provide positive commentary, with favorable forward comparables and the 2026 World Cup seen as a potential revenue catalyst [7] - Analysts believe that much of the current negative sentiment is already reflected in the stock price [7] Key Items to Watch - Wells Fargo maintains an Overweight rating and raises the price target from $155 to $160 [8] - Jefferies downgrades from Buy to Hold and lowers the price target from $170 to $154 [8] Business Performance - The beer business reported a high-single-digit decline in net sales despite beating estimates in the second quarter [9] - Constellation holds the U.S. license for importing popular brands like Modelo and Corona, which are among the top five imported beers in America [9] Tariff Impact - The company has been affected by tariffs, and analysts are looking for quantification of tariff impacts on costs for the third and fourth quarters [10] World Cup Potential - Analysts see potential benefits from the 2026 World Cup, with expectations for commentary on how the event could influence revenue and marketing strategies [11] Berkshire Hathaway Stake - Berkshire Hathaway has increased its stake in Constellation Brands, owning 13,400,000 shares by the end of the third quarter [12] - The new CEO of Berkshire, Greg Abel, is expected to closely monitor Constellation's financial results [13] Stock Performance - Constellation Brands stock is currently up 0.3% to $142.90, with a 52-week trading range of $126.45 to $226.22, and shares have declined by 35.9% over the past year [13]

Core Viewpoint - Constellation Brands is facing challenges with a projected decline in earnings and revenue, but is focusing on long-term growth through strategic investments in beer capacity and premium brands [1][4][6] Financial Performance - Anticipated earnings per share (EPS) for Constellation Brands is $2.65, reflecting an 18.2% decrease from the same quarter last year [2][6] - Revenue projections are estimated between $2.16 billion to $2.2 billion, representing an 11.6% drop year-over-year due to weak wine and spirits shipments [3][6] Strategic Initiatives - The company is investing in expanding its beer capacity in Mexico and emphasizing premium brands to strengthen market position and drive future revenue growth [4][6] Financial Metrics - Constellation Brands has a price-to-earnings (P/E) ratio of 20.49 and a price-to-sales ratio of 2.59, indicating market valuation [5] - The company's debt-to-equity ratio stands at 1.34, reflecting its financial leverage, while a current ratio of 1.08 suggests its ability to cover short-term liabilities [5]

Group 1: Fund Performance - Artisan Mid Cap Value 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% in Q3 2025, compared to a 6.18% return for the Russell Midcap Value Index [1] - The equity markets continued to rally in Q3 2025, driven by strong corporate earnings, rising AI capital expenditures, and expectations for economic support from US fiscal policy and lower interest rates [1] Group 2: Constellation Brands, Inc. Overview - Constellation Brands, Inc. (NYSE:STZ) produces and distributes beer, wine, and spirits, with a market capitalization of $24.573 billion as of January 2, 2026 [2] - The stock's one-month return was -0.58%, and it lost 36.68% of its value over the last 52 weeks [2] Group 3: Constellation Brands, Inc. Performance Analysis - Constellation Brands was the weakest performer outside of health care, with growth slowing significantly over the past year [3] - The company is USMCA compliant, but faces demand headwinds in its core Hispanic consumer market due to elevated inflation and recent immigration raids affecting social activity [3] - The US beer market is stagnating, with younger demographics shifting away from alcohol, yet Constellation Brands has maintained a loyal customer base and gained market share over the past 20 years, particularly with its Modelo Especial brand [3] - The company is focusing on growing its smaller brands, Pacifico and Victoria, while enhancing product offerings for its established brands [3] - Constellation Brands' valuation is compelling at 12X next year's forecast earnings compared to its five-year average of 18X, indicating potential for recovery as company-specific headwinds dissipate [3]

Geopolitical Developments - The U.S. launched a military strike on Venezuela, extracting President Nicolás Maduro to face criminal charges in the U.S. [2] - President Trump stated that the U.S. would "run" Venezuela until an orderly transition is possible and that U.S. oil companies would rebuild Venezuela's oil infrastructure [2][3] Market Reactions - Investors are expected to closely monitor developments in Venezuela and seek more details from the Trump administration, particularly regarding the oil market, which may experience volatility [3] Employment and Economic Data - The Bureau of Labor Statistics is set to release the December jobs report, which could influence interest rates [6] - Federal Reserve officials indicated that a weakening labor market might lead to more interest rate cuts, with upcoming reports on job openings, private sector hiring, and jobless claims providing insights into the labor market [7] Corporate Earnings Reports - Applied Digital, a data center operator, will report on the AI industry, with investors looking for signals of strong AI spending [9] - Constellation Brands, Tilray Brands, Albertsons Companies, CalMaine Foods, and Simply Good Foods are among the companies reporting earnings this week, providing insights into consumer spending levels [10][11]

Economic Data Release - The week will begin with ISM Manufacturing PMI and ISM Manufacturing Prices data for December on Monday [2] - S&P Global Services PMI and ISM Non-Manufacturing PMI for December will be released on Tuesday [2] - JOLTS Job Openings for November and ADP Nonfarm Employment numbers for December are scheduled for Wednesday [2] - Initial Jobless Claims data will be released on Thursday [2] - Nonfarm Payrolls and unemployment numbers for December are due on Friday [2] Earnings Reports - Constellation Brands, Marks & Spencer, Albertsons, and Applied Digital will report their earnings on Wednesday [3][4] - Tesco PLC is set to report earnings on Thursday [4] Market Events - The CES conference in Las Vegas will focus on AI, robotics, digital health, and mobility, featuring keynote speeches from Nvidia CEO Jensen Huang [5] - IREN Limited and GameStop are expected to experience volatility based on options volume [4] - The analyst quiet period will expire for Lumexa, Wealthfront, JM Group, and Cardinal Infrastructure, allowing analysts to post ratings [4]

Core Viewpoint - Constellation Brands, Inc. is expected to report declines in both revenue and earnings for the third quarter of fiscal 2026, with earnings estimated at $2.66 per share, reflecting an 18.2% decrease year-over-year, and revenues projected at $2.2 billion, indicating an 11.6% decline from the previous year [1][2]. Financial Performance Expectations - The Zacks Consensus Estimate for earnings is $2.66 per share, down 18.2% from the same quarter last year [2]. - Revenue expectations are set at $2.2 billion, which is an 11.6% decline compared to the prior-year quarter [2]. - In the last reported quarter, the company achieved an earnings surprise of 7.7%, with an average earnings beat of 4.2% over the last four quarters [3]. Earnings Prediction Model - The current model does not predict an earnings beat for Constellation Brands, as it holds a Zacks Rank of 4 (Sell) and an Earnings ESP of +3.58% [4]. Key Factors Impacting Q3 Results - The anticipated results are influenced by sluggish performance in the wine and spirits segment due to decreased shipment volumes, affected by the SVEDKA and 2025 Wine divestitures, as well as changes in distributor contractual obligations [5]. - Increased costs from packaging and raw materials due to inflation, along with higher depreciation and operating costs from brewery expansions, are expected to negatively impact operating income [6]. Strategic Initiatives - The company is progressing with capacity expansion plans in Mexico to meet demand for its high-end Mexican beer portfolio, including hard seltzers [7]. - Constellation Brands is focusing on premiumization, successfully transitioning its portfolio towards higher-end brands that align with consumer trends, with key growth drivers being its high-end Power Brands [8]. Valuation Insights - Constellation Brands is currently trading at a forward 12-month price-to-earnings ratio of 11.22X, which is below its five-year high of 23.57X and the industry average of 15.11X, indicating an attractive investment opportunity despite expected near-term declines [9][10]. - The stock has underperformed recently, losing 2.9% over the past three months compared to the industry’s growth of 1.9% [11].

Core Viewpoint - Constellation Brands is expected to report a decline in quarterly earnings while revenue is projected to increase slightly compared to the previous year [1] Group 1: Earnings and Revenue Expectations - The company will release its third-quarter earnings results on January 7, 2025, after the market closes [1] - Analysts predict earnings of $2.64 per share, down from $3.25 per share in the same quarter last year [1] - The consensus estimate for quarterly revenue is $2.16 billion, an increase from $2.46 billion a year earlier [1] Group 2: Analyst Ratings and Price Target - Jefferies analyst Kaumil Gajrawala downgraded Constellation Brands from Buy to Hold and reduced the price target from $170 to $154 [2] Group 3: Dividend Information - Constellation Brands currently offers an annual dividend yield of 2.96%, translating to a quarterly dividend of $1.02 per share, or $4.08 annually [2] - To achieve a monthly income of $500 from dividends, an investment of approximately $202,939 or around 1,471 shares is required [3] - For a more modest monthly income of $100, an investment of $40,560 or around 294 shares is needed [3] Group 4: Dividend Yield Calculation - The dividend yield is calculated by dividing the annual dividend payment by the stock's current price [4] - Changes in stock price directly affect the dividend yield; for instance, if the stock price increases, the yield decreases, and vice versa [4][5] - If a company increases its dividend while the stock price remains constant, the yield will increase [5] Group 5: Current Stock Performance - As of the latest publication, Constellation Brands shares were up 0.26% at $138.31 [5]