What does Constellation Brands do and what are its main business segments?

What is Constellation Brands's latest dividend and current dividend yield?

What is Constellation Brands's gross profit margin?

What were the key takeaways from Constellation Brands's earnings call?

What factors drove the changes in Constellation Brands's revenue and profit?

What is the market's earnings forecast for Constellation Brands next quarter?

What is the revenue and EPS growth rate for Constellation Brands year over year?

What guidance did Constellation Brands's management provide for the next earnings period?

- **Q3 Margin Strength**: Beer operating margins defied volume decline, driven by cost savings and pricing, despite tariffs and maintenance costs.
- **Q4 Headwinds**: Seasonal volume drop, aluminum tariffs, and timing delays will pressure margins, with a 20% volume decline expected.
- **Pacifico Growth**: Pacifico gains 1.5 points in on-premise share, positioning it as a #3 portfolio brand.
- **World Cup Opportunity**: Leverage Hispanic consumer engagement with sports marketing to drive beer moments.
- **Macro Uncertainty**: FY27 margin guidance will reflect updated macro assumptions, with cautious optimism on consumer recovery.

**【Management Opening Remarks】**
- Blair Veenema introduced the call, emphasizing the availability of the Q3 2026 earnings release and slides on the company’s website. She reminded participants of the reconciliation between GAAP and non-GAAP measures and the forward-looking statements' risk factors.

**【CEO Summary Section】**
- **Brand Momentum**: CEO Bill Newlands highlighted Pacifico as a standout brand, noting its 1.5-point gain in on-premise share and its success in California. He emphasized the importance of distribution growth, citing gains in 49 of 50 U.S. states.
- **Consumer Trends**: Newlands acknowledged the macroeconomic challenges, particularly among Hispanic consumers, but noted the resilience of the company’s portfolio, including Modelo Draft and Corona variants.
- **World Cup Impact**: He expressed optimism about the World Cup as a beer moment, aligning with the company’s focus on sports marketing and Hispanic consumer engagement.

**【CFO Financial Commentary】**
- **Q3 Performance**: CFO Garth Hankinson detailed Q3 beer operating margins, attributing strength to cost savings, favorable pricing, and a one-time depreciation benefit. He noted headwinds from tariffs, volume decline, and brewery maintenance.
- **Q4 Outlook**: Hankinson warned of a 20% seasonal volume drop, with additional headwinds from aluminum tariffs, shifting product mix to aluminum, and timing of tariff impacts. He also mentioned delayed expenses from Q3.
- **CapEx Management**: He reiterated the modular brewery expansion plan, noting long lead times for equipment but flexibility to delay non-critical spending.

**【Q&A Key Highlights】**
- **Margins and Tariffs**: Analysts probed the sustainability of margin improvements amid macro challenges. Hankinson clarified that FY27 guidance would be updated in April, reflecting evolving macro conditions.
- **Distribution Dynamics**: Newlands highlighted the opportunity for distribution gains, particularly in Modelo, which lags domestic peers in shelf presence despite being the #1 beer by dollars.
- **Consumer Sentiment**: Both executives emphasized the cautious spending environment among Hispanic consumers but pointed to brand health and innovation (e.g., 7-ounce cans) as mitigating factors.
- **Cannabis and Hemp**: Newlands dismissed near-term impacts of cannabis policy changes, noting limited engagement in the cannabis space and minimal overlap with beer categories.


Constellation Brands, Inc.(STZ)-20260108-2026 Q3 Earnings call transcript

- **Consumer Sentiment Drives Volatility**: 80% of consumers express economic concern, impacting spending, but brand loyalty for Corona and Modelo remains strong. Corona Familiar and Sunbrew are key growth engines.
- **Marketing and Innovation Lead**: Aggressive marketing (e.g., MLB partnerships) and new products like Corona Sunbrew target younger consumers, driving share gains.
- **Cost Savings Offset Margin Headwinds**: $105M in cost savings offset 160bps margin drag from fixed costs and tariffs, maintaining 39-40% margin target.
- **Wine & Spirits Resilience**: Despite first-half challenges, the business is on track to beat the market, with second-half improvement expected.
- **Macroeconomic Risks**: Management cautious on sustained low volume growth but optimistic about cyclical recovery, with continued investment in long-term growth.

**【CEO Summary Section】**
- **Consumer Sentiment and Volume Challenges**: CEO Bill Newlands highlighted that 80% of surveyed Hispanic and non-Hispanic consumers expressed concern about the socioeconomic environment, leading to reduced spending. However, brand loyalty remains strong, with Corona and Modelo showing resilience. Corona Familiar and Sunbrew are key growth drivers, while Corona Extra faces headwinds but maintains a halo effect for the brand family.
- **Marketing and Innovation**: Increased marketing spend, including partnerships with Major League Baseball and College Football, aims to attract younger consumers. New products like Corona Sunbrew (mixing beer with orange juice) are gaining traction, becoming the #1 new brand in dollars.
- **Wine & Spirits Growth**: Despite first-half challenges, the business is on track to beat the market, driven by brands like Kim Crawford, Ruffino, and The Prisoner. Management expects second-half improvement due to seasonal volume and better inventory alignment.

**【CFO Financial Commentary】**
- **Cost Savings and Margin Management**: CFO Garth Hankinson reported $105 million in year-to-date cost savings, focusing on logistics, manufacturing, and supplier optimization. However, 160 basis points of margin headwinds (fixed costs, tariffs, marketing) are expected for the year. The company maintains a 39-40% operating margin target but acknowledges risks if volumes remain depressed.
- **CapEx and Long-Term Growth**: Despite cutting top-line guidance, CapEx remains unchanged for FY26 due to long-term investments. Future adjustments will depend on macroeconomic trends.
- **Tariff Impact**: Beer tariffs are expected to add $70 million in FY26, with wine tariffs at $20 million, tracking volume trends.

**【Q&A Highlights】**
- **Hispanic Consumer Dynamics**: Management attributes volume declines to macroeconomic factors rather than secular trends, emphasizing brand loyalty and targeted marketing. Repositioning Modelo Oro and Premier at lower price points aims to address affordability concerns.
- **Margin Sustainability**: While current margins are strong, sustained low single-digit volume growth could pressure margins. Management is cautious but optimistic about a cyclical recovery.
- **Wine & Spirits Inventory**: Healthy distributor inventory levels support second-half growth, with focus on top-line share gains rather than margin chasing.


Constellation Brands, Inc. (STZ) Q2 2026 Earnings Call Transcript

- **Revenue Growth Resilience**: Q1 Beer revenue guidance maintained despite industry weakness, driven by sequential improvement and easier comps.
- **Margin Resilience**: $20M tariff impact offset by 80%+ peso hedging and cost control, affirming margin guidance.
- **Hispanic Consumer Strength**: Brand loyalty and spend resilience, with 50% Pacifico growth outside California.
- **Innovation Growth**: Sunbrew and Non-Alc driving new consumer acquisition, with #1/2 share of voice for Modelo/Corona.

**【CEO and CFO Q&A Highlights】**
- **Revenue Guidance Confidence**: CEO Bill Newlands affirmed Q1 Beer revenue growth despite industry weakness, citing sequential improvement against easier comps. CFO Garth Hankinson noted $20M tariff impact but confidence in margin delivery through cost control.
- **Hispanic Consumer Resilience**: Bill emphasized strong brand loyalty and intent metrics, with Hispanic consumers maintaining alcohol spend despite inflation. Garth highlighted hedging strategies (80%+ peso hedging for FY26) to mitigate currency risks.
- **Marketing and Innovation**: Bill highlighted Modelo and Corona's #1/2 share of voice in Beer, with investments in live events. New products like Sunbrew and Non-Alc are driving growth, with Pacifico seeing 50% growth outside California.
- **California Rebuild Potential**: CFO Garth noted long-term tailwind from wildfires rebuild, though short-term construction challenges persist.

**【Key Financial Metrics】**
- **Currency Hedging**: 80%+ peso hedged for FY26, reducing FX volatility impact.
- **Tariff Impact**: $20M incremental impact, partially offset by cost control.
- **Gross Margin Management**: Focus on price pack architecture and distribution gains to mitigate macro headwinds.

Constellation Brands, Inc. (STZ) Q1 2026 Earnings Call Transcript

- **Beer Growth Moderated**: FY '26-FY '28 net sales targets 0-3% (FY '26), 2-4% (FY '27-28) vs. prior 7-9% range, reflecting macro uncertainty.
- **Margin Resilience**: 39-40% operating margin maintained via 1-2% pricing, $200M+ cost savings, and modular capacity.
- **Tariff Impact**: FY '26 guidance includes 25% U.S. tariffs on Mexican beer cans and Canadian wine imports; 39-40% margin maintained via hedging (>70% U.S. peso), pricing, and cost control.
- **Free Cash Flow Engine**: $9B operating cash flow and $6B free cash flow FY '26-'28 to fund $2B brewery expansion and $4B share buybacks.
- **Risks**: Hispanic consumer sentiment (2/3 concerned about inflation/immigration), wine divestiture one-time $41M expense, and slower-than-expected tariff resolution.


**【CEO Overview】**
- Fiscal '25 net sales growth driven by beer business resilience despite macro challenges; comparable operating margin improved 200+ basis points.
- FY '26-FY '28 beer net sales growth target: 0-3% (FY '26), 2-4% (FY '27-28); operating margin target 39-40%.
- $9B operating cash flow and $6B free cash flow projected over FY '26-'28, with $4B share buyback authorization.

**【CFO Financial Highlights】**
- FY '25 GAAP net income $420M; Non-GAAP EPS $1.08 (vs. $0.95 prior year).
- FY '26-FY '28 cost savings: $200M+ annualized ($100M from wine divestitures, $100M+ from enterprise restructuring).
- Tariffs on aluminum cans and wine imports fully baked into FY '26 guidance; U.S. peso hedging at >70% for FY '26.

**【Q&A Key Themes】**
- **Tariffs & Beer Margin**: 25% U.S. tariffs on Mexican beer cans and Canadian wine imports fully factored into FY '26 guidance; 39-40% beer margin maintained via pricing (1-2%), cost savings, and modular capacity additions.
- **Hispanic Consumer Sentiment**: 2/3 of Hispanic consumers concerned about inflation/immigration; beer depletion decline driven by reduced social gatherings, not brand health.
- **Wine Business Reset**: FY '26 wine divestitures to generate $41M one-time expense; retained portfolio focused on premium brands with 4% Q4 depletion growth.
- **Capital Allocation**: 30% dividend payout ratio maintained; $4B share buyback to be executed opportunistically at current undervalued share price.


Constellation Brands (STZ)-10 Apr 25-2025 Q4 Earnings call transcript

- **Beer Growth Resilient**: 3.2% depletion growth vs. 1.6% shipments, driven by Modelo, Pacifico, and targeted marketing.
- **Guidance Adjustment**: FY25 beer sales 4-7% vs. prior 6-9%, reflecting macro caution.
- **Cash Return Focus**: $1.2B returned YTD; $1.9B buyback authorization remains.
- **Wine Challenges**: -14% Q3 sales, but premium brands (+6%) show potential.
- **Expansion Delay**: Mexico capacity pushed to FY26, Veracruz on track.


**【CEO Opening Remarks】**
- Beer business depletions grew 3.2% Q3, driven by incremental marketing investments and brand momentum. Shipments lagged due to brewery maintenance.
- Adjusted FY25 beer net sales guidance to 4-7% growth, operating income 9-12%, reflecting cautious macro outlook.
- Key brands: Modelo Especial (+3.2% depletions), Pacifico (+20%), Chelada (+4%).
- Wine & Spirits: Divested SVEDKA, focusing on premium brands; Fine Wine depletion up 6%.
- Capital returns: $220M share buybacks + $180M dividends in Q3, total $1.2B YTD.

**【CFO Financial Details】**
- Enterprise Q3 net sales flat YoY, comparable EPS $3.25 (flat YoY). Beer segment net sales +3%, operating income +2%.
- Wine & Spirits net sales -14%, operating income -17% due to category weakness and destocking.
- Free cash flow $1.6B YTD, up 13% YoY. Guidance: FY25 free cash flow $1.6-1.8B.
- Brewery expansion delays: Mexico capacity pushed to FY26, Veracruz phase 1 on track for FY27.

**【Q&A Highlights】**
- **Capital Allocation**: Prioritize share buybacks ($1.9B remaining) over brewery expansions; modular approach allows flexibility.
- **Consumer Trends**: Alcohol share of consumer basket stable, but unemployment in key markets (CA, TX) driving near-term weakness.
- **Wine Challenges**: Lower-tier wine destocking persists; premium brands (Meiomi +7%) showing resilience.
- **Wildfires Impact**: Donations made; guidance reflects potential disruption in key markets.


Actual																2.06	2.3	2.76	3.09	1.82	2.33	2.38	3.12	2.37	2.66	3.17	2.83	1.98	2.91	3.7	3.19	2.26	3.57	4.32	3.25	2.63	3.22	3.63	3.06
Forecast																1.6388	1.9862	2.5042	2.4181	1.5887	2.3462	2.7773	2.7564	2.0856	2.5176	2.8197	2.9007	1.8344	2.8265	3.3593	3.0142	2.1072	3.4585	4.0798	3.3112	2.2748	3.3081	3.3791	2.6354	1.6995
Surprise	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	+25.70%	+15.80%	+10.21%	+27.79%	+14.56%	-0.69%	-14.31%	+13.19%	+13.64%	+5.66%	+12.42%	-2.44%	+7.94%	+2.95%	+10.14%	+5.83%	+7.25%	+3.22%	+5.89%	-1.85%	+15.61%	-2.66%	+7.43%	+16.11%	0.00%

Actual	--	--	--	--	--	--	--	--	--	--	--	--	--	--	--	1.90B	1.96B	2.26B	2.44B	1.95B	2.03B	2.37B	2.32B	2.10B	2.36B	2.66B	2.44B	2.00B	2.51B	2.84B	2.47B	2.14B	2.66B	2.92B	2.46B	2.16B	2.52B	2.48B	2.22B	--
Forecast	--	--	--	--	--	--	--	--	--	--	--	--	--	--	--	1.84B	1.94B	2.19B	2.23B	1.87B	2.02B	2.30B	2.28B	2.02B	2.17B	2.51B	2.38B	2.02B	2.47B	2.82B	2.54B	2.09B	2.67B	2.95B	2.53B	2.13B	2.55B	2.46B	2.16B	1.85B
Surprise	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	+3.64%	+1.22%	+3.15%	+9.12%	+4.70%	+0.25%	+3.02%	+1.56%	+4.24%	+9.01%	+5.86%	+2.41%	-0.91%	+1.72%	+0.47%	-2.64%	+2.12%	-0.27%	-0.93%	-2.64%	+1.80%	-1.51%	+1.01%	+2.85%	0.00%

STZ

STZ fundamentals

STZ Q4 2026 Earnings Preview

Earnings Call

You can ask Aime

STZ

STZ fundamentals

STZ Q4 2026 Earnings Preview

Earnings Call

STZ Earnings Call Summary for Q4/2026Upcoming8:00 AM on Apr 9, 2026

STZ Earnings Call Summary for Q3/202610:30 AM on Jan 8, 2026

STZ Earnings Call Summary for Q2/20268:00 AM on Oct 7, 2025

STZ Earnings Call Summary for Q1/202610:30 AM on Jul 2, 2025

STZ Earnings Call Summary for Q4/202510:30 AM on Apr 10, 2025

You can ask Aime