- STZ has cut its full-year comparable earnings per share (EPS) forecast to $11.30-$11.60, down from a previous estimate of $12.60-$12.90. The market had expected $12.66.
- The company now sees a decline in enterprise net sales growth between 4% and 6%, revised from an earlier forecast of a change between -2% and 1%.
- Net sales growth for the Beer segment is now predicted to decrease by 2% to 4%, compared to an earlier forecast ranging from 0% to 3%.
- The company still expects a decline in sales for its Wine and Spirits segment between 17% to 20%.
- The forecast for operating cash flow has been revised to $2.5 billion to $2.6 billion, down from a previous outlook of $2.7 billion to $2.8 billion. The market expected this to be $2.74 billion.
- Free cash flow is projected at $1.3 billion to $1.4 billion, down from an earlier estimate of $1.5 billion to $1.6 billion, where the consensus was $1.55 billion.
- Capital expenditure is projected to remain around $1.2 billion, close to the estimated $1.18 billion.
- STZ continues to face a challenging macroeconomic environment that affects consumer demand and leads to volatile purchasing behavior since fiscal 2026 began.
- Inventory rebalancing at the distributor level is expected to reflect softer consumer trends and occur earlier than usual, specifically affecting the Beer business.
- Changes in shipments are expected to trail behind changes in depletions by 6 to 7 percentage points in the second quarter, but should align more closely in the second half of the fiscal year.
- Analyst ratings for STZ include 18 buys, 9 holds, and 1 sell.
“`
A look at Constellation Brands Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 3 | |
| Growth | 2 | |
| Resilience | 2 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 2.6 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Constellation Brands, Inc. is positioned with an overall positive long-term outlook, as indicated by its Smartkarma Smart Scores. These scores reflect the company’s strength in multiple areas, including value, dividend, and momentum. With a solid Value and Dividend score of 3 each, Constellation Brands is deemed to offer a good balance of returns to investors. However, there is room for improvement in Growth and Resilience, both scoring a 2, suggesting potential areas for the company to focus on enhancing. On the bright side, the momentum score of 3 signifies positive market sentiment and performance, which bodes well for the company’s future prospects.
Constellation Brands, Inc. operates in the alcoholic beverages industry across different regions, with a diverse portfolio of brands in wine, imported beer, and distilled spirits. Leveraging its wholly owned subsidiaries and various joint ventures, the company has established a strong presence in North America, Europe, Australia, and New Zealand. With a balanced assessment across key factors like value, dividend, and momentum, Constellation Brands is poised to capitalize on its market position and drive sustained growth in the long term.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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