Latest news with #BillNewlands
Yahoo
09-07-2025
- Business
- Yahoo
Analysts reboot Corona Beer owner stock price target in face of market pressures
Analysts reboot Corona Beer owner stock price target in face of market pressures originally appeared on TheStreet. This was no time for crying in your beer. Constellation Brands () CEO Bill Newlands faced analysts on July 1 after the beer, wine and spirits company missed Wall Street's first-quarter earnings and revenue expectations. 💵💰Don't miss the move: Subscribe to TheStreet's free daily newsletter 💰 "I think it's important to point out that the quarter was as we expected," Newlands said during the company's earnings call. "We saw a significant amount of consumer concern that has continued from the past quarters into this quarter. But this quarter was as we expected." The Rochester, NY-based company generates roughly 80% of its revenue from beer sales, primarily through Mexican beer imports like Corona and Modelo. Beer sales slipped 2% for the quarter, the company said, driven by a 3.3% decline in shipment volumes "reflecting socioeconomic headwinds affecting consumer demand." RBC analyst Nik Modi asked about concerns related to the company's Hispanic customers, in light of the Trump Administration's stepped up efforts on deportation and border security. "It almost feels like it's getting a bit worse in terms of just at least from the headlines of the raids and where they're targeting consumers in normal places of shopping," Modi said. "Do you have any perspective from the administration in terms of when some of these raids will start to calm down?" More Wall Street Analysts: Analysts reboot Olive Garden parent's stock price targets as earnings loom Analysts revamp forecast for Nvidia-backed AI stock Intuitive Surgical analyst raises eyebrows with new stock price target "First and foremost, our loyalty is very strong and remains very strong with the Hispanic consumer base," Newlands responded. "Both Hispanic and non Hispanic consumers are concerned about inflation and about cost structure." Hispanic consumers, reflects roughly half the company's business, he said, "and that consumer is very interested in beer." "What has occurred is that occasions on which beer is consumed have decreased because of concerns of the socioeconomic area," Newlands said in response to another question. "When we look at the fact that consumers are not going out to eat as much as they had, they're having less social occasions at home, it doesn't change their interest in consumption of beer," he added. "It simply has been that those occasions have been decreased." Americans overall say they will cutting back on alcohol, according to survey released in January by advertising and sales measurement technology firm NCSolutions. Forty-nine percent of the respondents said they intend to drink less in 2025 – up from 41% a year earlier, with Generation Z, or adults ages 18 to 28, leading the way. The company reaffirmed its forecast for fiscal 2026, although Chief Financial Officer Garth Hankinson acknowledged that "there are still some macroeconomic we continue to monitor and there continues to be some uncertainty in the macro backdrop." "We've seen from our banking partners and from the Fed some reductions in expectations around GDP growth as well as some softening in expectations with inflation, unemployment and interest rates," he said. "That being said," Hankinson added, "there's a lot of guesswork, I think, more so in this year's forecast as it relates to things like the impact of potential tariffs or the potential impact of tariffs and the potential impact of unemployment of government related layoffs."Constellation Brands are down 23% this year, and the stock is down nearly 34% from this time in 2024 Jefferies upgraded Constellation Brands to buy from hold on July 7 with a price target of $205, up from $194, according to The Fly. Hispanics are drinking less beer, but this won't last forever, and Constellation's compares are easing at an accelerating pace, the firm said. Jefferies said the company's "solid" balance sheet provide it time while the stock's valuation is "too cheap." On July 1, UBS raised the firm's price target on Constellation Brands to $205 from $195 and kept a buy rating on the shares. Constellation Brands reported a tough start to fiscal 2026, but maintained their outlook for the year, the firm said. Despite a choppy near-term set-up, UBS said that it still sees a path to low-single digit top line and mid-single digit bottom line growth over the long-term. And Citi raised the firm's price target on Constellation Brands to $174 from $170 and kept a neutral rating on the shares. Constellation posted "a soft start" to FY26, but reiterated its FY26 guidance, which drove a positive stock reaction given negative positioning and several investors having expected a cut, the firm said. Despite easier comps in July and August, the firm believes a return to growth "looks challenging given weakness in the category," Citi reboot Corona Beer owner stock price target in face of market pressures first appeared on TheStreet on Jul 7, 2025 This story was originally reported by TheStreet on Jul 7, 2025, where it first appeared. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Miami Herald
07-07-2025
- Business
- Miami Herald
Analysts reboot Corona Beer owner stock price target in face of market pressures
This was no time for crying in your beer. Constellation Brands (STZ) CEO Bill Newlands faced analysts on July 1 after the beer, wine and spirits company missed Wall Street's first-quarter earnings and revenue expectations. Don't miss the move: Subscribe to TheStreet's free daily newsletter "I think it's important to point out that the quarter was as we expected," Newlands said during the company's earnings call. "We saw a significant amount of consumer concern that has continued from the past quarters into this quarter. But this quarter was as we expected." The Rochester, NY-based company generates roughly 80% of its revenue from beer sales, primarily through Mexican beer imports like Corona and Modelo. Beer sales slipped 2% for the quarter, the company said, driven by a 3.3% decline in shipment volumes "reflecting socioeconomic headwinds affecting consumer demand." RBC analyst Nik Modi asked about concerns related to the company's Hispanic customers, in light of the Trump Administration's stepped up efforts on deportation and border security. "It almost feels like it's getting a bit worse in terms of just at least from the headlines of the raids and where they're targeting consumers in normal places of shopping," Modi said. "Do you have any perspective from the administration in terms of when some of these raids will start to calm down?" More Wall Street Analysts: Analysts reboot Olive Garden parent's stock price targets as earnings loomAnalysts revamp forecast for Nvidia-backed AI stockIntuitive Surgical analyst raises eyebrows with new stock price target "First and foremost, our loyalty is very strong and remains very strong with the Hispanic consumer base," Newlands responded. "Both Hispanic and non Hispanic consumers are concerned about inflation and about cost structure." Hispanic consumers, reflects roughly half the company's business, he said, "and that consumer is very interested in beer." "What has occurred is that occasions on which beer is consumed have decreased because of concerns of the socioeconomic area," Newlands said in response to another question. "When we look at the fact that consumers are not going out to eat as much as they had, they're having less social occasions at home, it doesn't change their interest in consumption of beer," he added. "It simply has been that those occasions have been decreased." Americans overall say they will cutting back on alcohol, according to survey released in January by advertising and sales measurement technology firm NCSolutions. Forty-nine percent of the respondents said they intend to drink less in 2025 – up from 41% a year earlier, with Generation Z, or adults ages 18 to 28, leading the way. The company reaffirmed its forecast for fiscal 2026, although Chief Financial Officer Garth Hankinson acknowledged that "there are still some macroeconomic we continue to monitor and there continues to be some uncertainty in the macro backdrop." "We've seen from our banking partners and from the Fed some reductions in expectations around GDP growth as well as some softening in expectations with inflation, unemployment and interest rates," he said. "That being said," Hankinson added, "there's a lot of guesswork, I think, more so in this year's forecast as it relates to things like the impact of potential tariffs or the potential impact of tariffs and the potential impact of unemployment of government related layoffs." Related: Corona beer owner raises red flag about alarming consumer trend Constellation Brands are down 23% this year, and the stock is down nearly 34% from this time in 2024 Jefferies upgraded Constellation Brands to buy from hold on July 7 with a price target of $205, up from $194, according to The Fly. Hispanics are drinking less beer, but this won't last forever, and Constellation's compares are easing at an accelerating pace, the firm said. Jefferies said the company's "solid" balance sheet provide it time while the stock's valuation is "too cheap." On July 1, UBS raised the firm's price target on Constellation Brands to $205 from $195 and kept a buy rating on the shares. Constellation Brands reported a tough start to fiscal 2026, but maintained their outlook for the year, the firm said. Despite a choppy near-term set-up, UBS said that it still sees a path to low-single digit top line and mid-single digit bottom line growth over the long-term. And Citi raised the firm's price target on Constellation Brands to $174 from $170 and kept a neutral rating on the shares. Constellation posted "a soft start" to FY26, but reiterated its FY26 guidance, which drove a positive stock reaction given negative positioning and several investors having expected a cut, the firm said. Despite easier comps in July and August, the firm believes a return to growth "looks challenging given weakness in the category," Citi said. Related: Fund-management veteran skips emotion in investment strategy The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Yahoo
05-07-2025
- Business
- Yahoo
Corona beer owner raises red flag about alarming consumer trend
Corona beer owner raises red flag about alarming consumer trend originally appeared on TheStreet. Constellation Brands () , which owns top beer brands Corona and Modelo, has been struggling to attract customers over the past few months, and its CEO is calling out the source of the problem. In Constellation Brands' first-quarter earnings report for 2025, it revealed that its net sales in beer declined by 2% year-over-year, while net sales in wine and spirits decreased by a whopping 28%. 💵💰Don't miss the move: Subscribe to TheStreet's free daily newsletter 💰💵 The sharp decline in sales contributed to the company generating only $714 million in operating income, which is 24% lower than what it earned during the same time period last the report, Constellation Brands said that 'the current socioeconomic environment' contributed to weak consumer demand. During an earnings call on July 1, Constellation Brands CEO Bill Newlands said the company saw a 'significant amount of consumer concern' during the quarter, especially among Hispanic and non-Hispanic consumers, which has prompted a sharp change in their spending habits. 'Both Hispanic and non-Hispanic consumers are concerned about inflation and about cost structure,' said Newlands. 'But I also would point out that the percentage of alcohol in the basket has remained constant, even though the basket has gotten smaller relative to what consumers are doing with consumer goods.' This concern comes at a time when inflation remains high, and President Donald Trump's tariff policy has led to uncertainty about the economy, raising worries about a possible recession. According to a recent survey from market research company Numerator, 64% of consumers are worried that tariffs will raise prices on everyday emphasized that Hispanic customers reflect about half of Constellation Brands' business, and they still remain 'very interested' in beer. However, they are, like many other consumer groups, scaling back social gatherings to save money. 'So when [we] look at the fact that consumers are not going out to eat as much as they had; they're having less social occasions at home, [but] it doesn't change their interest in consumption of beer,' said Newlands. 'It simply has been that those occasions have been decreased.' Constellation Brands recently conducted a survey of both Hispanic and non-Hispanic consumers and found that 70% of consumers are concerned about their personal finances. In response to these worries, consumers said that they have scaled back social gatherings with friends and family in public spaces and at homes over the past three months. They are also shopping less at convenience stores or gas stations, two of the top places to purchase alcoholic beverages. To help combat this alarming consumer trend, Constellation Brands is making a few tweaks to its pricing. 'I would point out where we're spending a lot of time is in price pack an area where as the consumer may be more concerned about inflationary trends, it would be important to have the right pack set at the right price points, so that no matter what the consumer has available to them to spend, we have a product available,' said Newlands. The weak consumer demand also comes during a time when many Americans are changing their tune about alcohol consumption. More Retail: Costco quietly plans to offer a convenient service for customers T-Mobile pulls the plug on generous offer, angering customers AT&T makes generous offer to older customers A survey from Gallup last year found that 45% of Americans believe drinking one or two alcoholic beverages a day is harmful to one's health. This is a six-percentage-point increase, compared to results from last year, and a 17-point increase compared with responses in 2018. Amid this change in attitude, beer, wine, and spirit sales in the U.S. declined in 2024. In addition, then-U.S. Surgeon General Dr. Vivek Murthy released an advisory in January that highlights a direct link between alcohol consumption and increased cancer risk. The advisory may make it extra challenging for the alcohol industry to experience a quick recovery in beer owner raises red flag about alarming consumer trend first appeared on TheStreet on Jul 5, 2025 This story was originally reported by TheStreet on Jul 5, 2025, where it first appeared.
Miami Herald
05-07-2025
- Business
- Miami Herald
Corona beer owner raises red flag about alarming consumer trend
Constellation Brands (STZ) , which owns top beer brands Corona and Modelo, has been struggling to attract customers over the past few months, and its CEO is calling out the source of the problem. In Constellation Brands' first-quarter earnings report for 2025, it revealed that its net sales in beer declined by 2% year-over-year, while net sales in wine and spirits decreased by a whopping 28%. Don't miss the move: Subscribe to TheStreet's free daily newsletter The sharp decline in sales contributed to the company generating only $714 million in operating income, which is 24% lower than what it earned during the same time period last year. Related: Coca-Cola suffers an alarming loss from major boycott In the report, Constellation Brands said that "the current socioeconomic environment" contributed to weak consumer demand. During an earnings call on July 1, Constellation Brands CEO Bill Newlands said the company saw a "significant amount of consumer concern" during the quarter, especially among Hispanic and non-Hispanic consumers, which has prompted a sharp change in their spending habits. "Both Hispanic and non-Hispanic consumers are concerned about inflation and about cost structure," said Newlands. "But I also would point out that the percentage of alcohol in the basket has remained constant, even though the basket has gotten smaller relative to what consumers are doing with consumer goods." This concern comes at a time when inflation remains high, and President Donald Trump's tariff policy has led to uncertainty about the economy, raising worries about a possible recession. According to a recent survey from market research company Numerator, 64% of consumers are worried that tariffs will raise prices on everyday goods. Related: Corona beer owner flags a startling shift in consumer behavior Newlands emphasized that Hispanic customers reflect about half of Constellation Brands' business, and they still remain "very interested" in beer. However, they are, like many other consumer groups, scaling back social gatherings to save money. "So when [we] look at the fact that consumers are not going out to eat as much as they had; they're having less social occasions at home, [but] it doesn't change their interest in consumption of beer," said Newlands. "It simply has been that those occasions have been decreased." Constellation Brands recently conducted a survey of both Hispanic and non-Hispanic consumers and found that 70% of consumers are concerned about their personal finances. In response to these worries, consumers said that they have scaled back social gatherings with friends and family in public spaces and at homes over the past three months. They are also shopping less at convenience stores or gas stations, two of the top places to purchase alcoholic beverages. To help combat this alarming consumer trend, Constellation Brands is making a few tweaks to its pricing. "I would point out where we're spending a lot of time is in price pack an area where as the consumer may be more concerned about inflationary trends, it would be important to have the right pack set at the right price points, so that no matter what the consumer has available to them to spend, we have a product available," said Newlands. The weak consumer demand also comes during a time when many Americans are changing their tune about alcohol consumption. More Retail: Costco quietly plans to offer a convenient service for customersT-Mobile pulls the plug on generous offer, angering customersAT&T makes generous offer to older customers A survey from Gallup last year found that 45% of Americans believe drinking one or two alcoholic beverages a day is harmful to one's health. This is a six-percentage-point increase, compared to results from last year, and a 17-point increase compared with responses in 2018. Amid this change in attitude, beer, wine, and spirit sales in the U.S. declined in 2024. In addition, then-U.S. Surgeon General Dr. Vivek Murthy released an advisory in January that highlights a direct link between alcohol consumption and increased cancer risk. The advisory may make it extra challenging for the alcohol industry to experience a quick recovery in sales. Related: Chick-fil-A angers customers with major change in stores The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Yahoo
04-07-2025
- Business
- Yahoo
Tariffs Hit Hard: Constellation Brands Faces $20M Blow
Constellation Brands (NYSE:STZ) is bracing for a $20 million hit over the next three quarters, driven by aluminum tariffs tied to President Trump's 50% duty on imported cans. The added cost won't show up in Q1 results, which ended May 31, but CFO Garth Hankinson confirmed it'll start chipping away at margins starting this quarterabout 20 basis points, to be exact. Since most of the company's beer is packaged in aluminum, and not exempt like other alcohol imports from Mexico, the financial impact looks tough to fully offset. Warning! GuruFocus has detected 3 Warning Sign with STZ. The tariff pain comes at a time when beer demand isn't doing any favors either. CEO Bill Newlands told investors that while overall interest in beer hasn't faded, the number of social occasions where people actually drink it hasboth at restaurants and at home. That shift, paired with rising input costs, could pressure the company's largest earnings engine: its beer business. It's a double-whammy of softer volumes and higher costs, which could make profitability a lot harder to defend going forward. And yet, investors didn't flinch. Shares climbed 4.7% at 12.59pm, trimming the year's losses to around 33%. The move suggests the market may have already priced in the bad newsor is betting management can absorb the blow without derailing the broader strategy. But with margins thinning and demand dynamics evolving, this could be a space to watch closely in the second half of the fiscal year. This article first appeared on GuruFocus.
