Latest news with #STZ
Yahoo
3 hours ago
- Business
- Yahoo
Why Constellation Brands Stock Rocketed Higher on Wednesday
The company unveiled its first quarter of fiscal 2026 earnings. Although it posted declines in key metrics and missed analyst estimates, Constellation signaled optimism about its top product category. 10 stocks we like better than Constellation Brands › Constellation Brands (NYSE: STZ) recorded a double miss with its latest earnings report, published after market close Tuesday. Investors were clearly in a forgiving mood, however, as they traded up the adult beverage company's shares by almost 5% the following day. This was more than good enough to crush the S&P 500's (SNPINDEX: ^GSPC) slightly under-0.5% rise. For its first quarter of fiscal 2026, Constellation booked just under $2.52 billion in net sales, which was down from $2.66 billion in the same period the previous year. Non-GAAP (generally accepted accounting principles) adjusted net profit saw a steeper fall, tumbling by 12% year over year to hit nearly $573 million, or $3.22 per share. Analysts were expecting better. Their consensus for net sales was $2.56 billion, and that for adjusted profitability was $3.41. Beer, Constellation's largest and therefore most important product category, saw only slight decreases in both volume and sales compared to wine and spirits. Net sales of suds fell 2% (to $2.2 billion), while the take from wine and spirits plummeted by 28% to under $281 million. Forward-looking investors were likely cheered by Constellation's guidance, which anticipates flat to 3% growth in net sales for beer across fiscal 2026, although wine and spirits are expected to continue their decline with a drop of 17% to 20%. All told, organic net sales should slide by 2% or grow as much as 1% (however, the fiscal 2025 numbers include Svedka, the vodka brand the company sold earlier this year). Before you buy stock in Constellation Brands, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Constellation Brands wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $697,627!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $939,655!* Now, it's worth noting Stock Advisor's total average return is 1,045% — a market-crushing outperformance compared to 178% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 30, 2025 Eric Volkman has no position in any of the stocks mentioned. The Motley Fool recommends Constellation Brands. The Motley Fool has a disclosure policy. Why Constellation Brands Stock Rocketed Higher on Wednesday was originally published by The Motley Fool
Yahoo
11 hours ago
- Business
- Yahoo
Constellation Brands Q1: How Trump immigration policy hurt sales
Constellation Brands (STZ), which makes Modelo and Corona beers, reported a first quarter earnings miss. The company highlighted a decline in beer sales due to "socioeconomic headwinds affecting consumer demand" hitting Modelo and Corona. Yahoo Finance Senior Reporter Brooke DiPalma shares takeaways from the results, examining how the Trump administration's immigration policies have impacted Constellation Brands's Hispanic customer base. Check out Yahoo Finance's interview with Constellation Brands (STZ) CEO Bill Newlands here. To watch more expert insights and analysis on the latest market action, check out more Morning Brief here. Constellation Brands, missing on adjusted earnings per share on weaker than expected beer sales. We've been watching closely this one this morning. What do we learn from the report? Brad, the stock right now flat as we make our way into the open. We're waiting to hear from a key call with the executives at 10:30 this morning after the report came out last night. They do their call the following day. But if you look beneath their report, one key call out is the impact of the Trump's administration crackdown on immigration that really caught our attention. You see Constellation Brands, Corona and Modelo brands has a key Hispanic consumer. They said that they have a very loyal Hispanic consumer to both those beer brands. And in their report, they said that there has been socioeconomic concerns that have impacted this past quarterly results. And that's because these this group of people and beyond that have gathered less, they've gone to less gas stations and convenience stores and less public places and that led to a 3.3% decline in volume growth for beer specifically at Constellation brands. 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
Wall Street Journal
17 hours ago
- Automotive
- Wall Street Journal
Stocks to Watch Wednesday: Tesla, Centene, Paramount
🔎 Tesla (TSLA): Analysts expect quarterly delivery data, due before the market opens, to show another steep drop in sales. ↘️ Centene (CNC): Shares dropped roughly a quarter in off-hours trading. The healthcare company said earnings will fall well short of expectations and withdrew financial guidance for 2025. ↘️ Constellation Brands (STZ): The U.S. importer of Modelo and Corona beers posted lower quarterly profit and sales, stung by a drop in demand among Hispanic consumers. Shares slipped.
Yahoo
a day ago
- Business
- Yahoo
Constellation Brands (STZ) Q1 Earnings: How Key Metrics Compare to Wall Street Estimates
Constellation Brands (STZ) reported $2.52 billion in revenue for the quarter ended May 2025, representing a year-over-year decline of 5.5%. EPS of $3.22 for the same period compares to $3.57 a year ago. The reported revenue compares to the Zacks Consensus Estimate of $2.57 billion, representing a surprise of -2.07%. The company delivered an EPS surprise of -3.59%, with the consensus EPS estimate being $3.34. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health. As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately. Here is how Constellation Brands performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Net Sales- Wine and Spirits: $280.5 million versus the five-analyst average estimate of $297.74 million. The reported number represents a year-over-year change of -27.9%. Net Sales- Beer: $2.23 billion compared to the $2.27 billion average estimate based on five analysts. The reported number represents a change of -1.7% year over year. Operating Income- Wine and Spirits: $-6 million versus the four-analyst average estimate of $12.38 million. Operating Income- Beer: $873.4 million compared to the $899.7 million average estimate based on four analysts. Operating Income- Corporate Operations and Other: $-57.5 million compared to the $-63.99 million average estimate based on three analysts. View all Key Company Metrics for Constellation Brands here>>> Shares of Constellation Brands have returned -6.6% over the past month versus the Zacks S&P 500 composite's +5.2% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Constellation Brands Inc (STZ) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research 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
Yahoo
a day ago
- Business
- Yahoo
Constellation Brands (NYSE:STZ) Misses Q2 Revenue Estimates
Beer, wine, and spirits company Constellation Brands (NYSE:STZ) missed Wall Street's revenue expectations in Q2 CY2025, with sales falling 5.5% year on year to $2.52 billion. Its non-GAAP profit of $3.22 per share was 2.3% below analysts' consensus estimates. Is now the time to buy Constellation Brands? Find out in our full research report. Revenue: $2.52 billion vs analyst estimates of $2.55 billion (5.5% year-on-year decline, 1.5% miss) Adjusted EPS: $3.22 vs analyst expectations of $3.29 (2.3% miss) Adjusted EBITDA: $829.7 million vs analyst estimates of $950.5 million (33% margin, 12.7% miss) Management reiterated its full-year Adjusted EPS guidance of $12.75 at the midpoint Operating Margin: 28.4%, down from 35.4% in the same quarter last year Free Cash Flow Margin: 17.7%, up from 11.8% in the same quarter last year Organic Revenue fell 4% year on year (6% in the same quarter last year) Market Capitalization: $28.78 billion With a presence in more than 100 countries, Constellation Brands (NYSE:STZ) is a globally renowned producer and marketer of beer, wine, and spirits. Reviewing a company's long-term sales performance reveals insights into its quality. Any business can have short-term success, but a top-tier one grows for years. With $10.06 billion in revenue over the past 12 months, Constellation Brands is one of the larger consumer staples companies and benefits from a well-known brand that influences purchasing decisions. However, its scale is a double-edged sword because there are only a finite number of major retail partners, placing a ceiling on its growth. For Constellation Brands to boost its sales, it likely needs to adjust its prices, launch new offerings, or lean into foreign markets. As you can see below, Constellation Brands's 3.2% annualized revenue growth over the last three years was sluggish. This shows it failed to generate demand in any major way and is a rough starting point for our analysis. This quarter, Constellation Brands missed Wall Street's estimates and reported a rather uninspiring 5.5% year-on-year revenue decline, generating $2.52 billion of revenue. Looking ahead, sell-side analysts expect revenue to decline by 6.6% over the next 12 months, a deceleration versus the last three years. This projection doesn't excite us and implies its products will face some demand challenges. Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next. When analyzing revenue growth, we care most about organic revenue growth. This metric captures a business's performance excluding one-time events such as mergers, acquisitions, and divestitures as well as foreign currency fluctuations. The demand for Constellation Brands's products has generally risen over the last two years but lagged behind the broader sector. On average, the company's organic sales have grown by 2.8% year on year. In the latest quarter, Constellation Brands's organic sales fell by 4% year on year. This decline was a reversal from its historical levels. We'll keep a close eye on the company to see if this turns into a longer-term trend. The company's revenue and EPS both missed, which is a poor start. However, Constellation Brands did maintain its full-year revenue guidance. Still, this quarter could have been better. The stock remained flat at $165 immediately following the results. Constellation Brands didn't show it's best hand this quarter, but does that create an opportunity to buy the stock right now? What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here, it's free. Sign in to access your portfolio
