Constellation Brands reported Q1 results, continuing an expected growth performance driven by very strong beer growth and weaker wine & spirit sales. Q1 and the FY2025 guidance tracks STZ's mid-term 6-8% revenue growth target and margin expansion target into a 33-35% operating margin, laid out in the 2023 Investor Day. With the stagnant stock price, debt paydowns, impressive operating leverage, and beer growth momentum, the valuation now seems fair after I noted an overvaluation previously.
STZ has strong beer sales due to its loyal Hispanic customer base. Recent earnings show positive growth in beer segment, with potential for continued volume growth. Management guidance and historical performance suggest strong EPS growth, making the current valuation attractive.
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Constellation Brands, Inc. (NYSE:STZ ) Q1 2025 Earnings Conference Call July 3, 2024 10:30 AM ET Company Participants Joseph Suarez - SVP, IR Bill Newlands - President & CEO Garth Hankinson - CFO Conference Call Participants Andrea Teixeira - JP Morgan Carlos Laboy - HSBC Dara Mohsenian - Morgan Stanley Filippo Falorni - Citi Lauren Lieberman - Barclays Nik Modi - RBC Capital Markets Bryan Spillane - Bank of America Peter Grom - UBS Chris Carey - Wells Fargo Securities Bonnie Herzog - Goldman Sachs Rob Ottenstein - Evercore ISI Robert Moskow - TD Cowen Operator Good morning, and welcome to the Constellation Brands First Quarter Fiscal Year 2025 Earnings Call. At this time, all participants are in a listen-only mode.
Constellation Brands' (STZ) Q1 results reflect continued volume growth in the beer business and gains from improved operating margin expansion.
Constellation Brands (STZ) on Wednesday reported a big jump in first-quarter profit and lifted its full-year guidance on higher beer sales, but wine and spirits sales fell.
Constellation Brands Inc (NYSE:STZ) reported a larger than expected profit for the first quarter fiscal 2025 financial results driven by strength in its beer business. The alcohol producer and marketer behind more than 100 brands including Corona, Modelo Especial, Kim Crawford and Meiomi posted earnings per share (EPS) were $3.57, up 17% year-over-year and ahead of the $3.46 consensus.
Corona beer maker Constellation Brands on Wednesday beat Wall Street estimates for first-quarter profit, helped by strong demand for its core beer brands, which offset the sluggish wines and spirits business.
Constellation Brands, Inc. STZ will release earnings results for its first quarter, before the opening bell on Wednesday.
Although the Independence Day holiday on Thursday shortens the trading week, the Friday release of the U.S. jobs report gives investors significant data to close the week. Before that, Federal Reserve Chair Jerome Powell will make comments at an international conference, followed by the release of the minutes from the Fed's June meeting.
Constellation Brands' (STZ) Q1 results are likely to reflect gains from a strong beer portfolio, growth in Power Brands and premiumization. Inflationary costs are expected to have weighed on margins.
Evaluate the expected performance of Constellation Brands (STZ) for the quarter ended May 2024, looking beyond the conventional Wall Street top-and-bottom-line estimates and examining some of its key metrics for better insight.