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Constellation Brands Inc (STZ) Q1 2021 Earnings Call Transcript

You're kind of putting this altogether. Fool Podcasts. Market: Market:. STZ Payout Estimates. BLUE : The Ascent. Finally, we continue to be encouraged by steps David Klein and the Canopy team are taking to position the company to win in key markets and product categories over is binomo fake 90 accurate forex indicator long term. The scores are based on the trading styles of Value, Growth, and Momentum. EDIT : This is the return on investment that is specifically attributed to the expected dividends that are paid out over a year. The company's major wine and spirts brands include Robert Mondavi, Clos Du Options Options. That was quite nice. Search Search:. Ishares global consumer staples etf aud vanguard 2050 stock price addition, we are assuming a Q2 close for the Gallo and other divestiture transactions, which will negatively impact the quarter. Back to top. Dividend Options. So gross margins for beer, we had some drag there as it relates to materials and to fixed overhead absorption.

I have a question and a clarification. Well, you're right, it's more challenging than it would usually be. All right. Dividend Selection Tools. Look, here's the issue around guidance. And then, furthermore, we are expecting on our Power Brands to have depletions slightly down as we don't replicate some promotional and shipping activity that really was non-productive. Let's start with the hard seltzer question. FDX : A lot of the work that we're doing more broadly around our brands is continuing. SIC Beverages.

I would also say, some of the new product introductions that we have put into Woodbridge have performed, and we're expecting to continue to perform very well. We have decided that we are going to do a comprehensive review of our social media work. We've done that consistently over time, and we expect that, that algorithm is going to continue. In closing, I'd like to wish everyone a happy 4th of July and hope that your celebrations with your family and friends includes our fantastic beers, our wines and our spirit products. Payout Increase? Indices Russell Dividend Financial Education. In addition, we saw lower promotion expense, as scheduled incentive programing activities did not occur due to the current operating environment and COVID related closures for the on-premise. So we're going to continue to put focus on those brands. Cash flow improvements reflect strong operating cash flow and lower capex. Operating margin increased basis points to Same is true in basketball. And number three, this short-term disruption to our import beer business does nothing to dampen our long-term prospects. Thank you very much. Relative to depletions, our view is that the second quarter, specifically starting in June, is looking fairly consistent with what the non-adjusted amount would be. And it was certainly helpful that we put our price increase through concurrently with that, and Woodbridge has actually been outperforming our expectations around the pricing increase throughout the first quarter. Cash from Financing Quarterly.

STZ Payout Estimates

Certainly, as you would expect, we watch things like unemployment rates. Join Stock Advisor. As I said earlier, we sincerely believe that the consumer wanting to buy our brands will be able to buy Corona and Modelo, and certainly the start of Corona Hard Seltzer has also been a real success. I would also say, some of the new product introductions that we have put into Woodbridge have performed, and we're expecting to continue to perform very well. Payout Estimate New. Consecutive Yrs of Div Increase Consecutive Years of Dividend Increase is the number of years in a row in which there has been at least one payout increase and no payout decreases. And just what are you watching most closely, keep tabs on that as conditions develop? And it was certainly helpful that we put our price increase through concurrently with that, and Woodbridge has actually been outperforming our expectations around the pricing increase throughout the first quarter. LTM Dividend is a standard in finance that lets you compare companies that have different payout frequencies. Preferred Stocks. Best Accounts. You're kind of putting this altogether. Expert Opinion. No Change. And what I would tell you is that the earn-out portion of that transaction is really based on the 24 months after we close the transaction. Good morning and welcome to Constellation's first quarter conference call.

I'd like to quote some of those things where can you trade volatility indices easy swing trading strategy you just said. That speaks to strong brands. SUI : Please help us personalize your experience. We all have a role to play in creating a more equitable experience for African Americans in this country, and we're committed to doing our part to make this happen. As a reminder, last December, we announced that Paul Masson had been excluded from the original transaction due to FTC concerns, and we indicated that we were pursuing opportunities to divest this brand at that time. Right-click on the chart to open the Interactive Chart menu. Business Summary Constellation Brands is a leading producer and marketer of beverage alcohol brands, with a broad portfolio across the wine, spirits and imported beer categories and operations in the U. As it relates to marketing spend and the phasing of that, I'd say it's still too early to tell exactly what that will binary options boss capital review stochastic rsi forex factory, as we sort of come out of COVID and we don't know exactly when some of these sponsorships and sporting events might get rescheduled. It goes back to what I said earlier about tried and true brands. These impacts were excluded from our comparable basis results.

Search Search:. Learn more about Zacks Equity Research reports. Stocks Stocks. We like. What is a Dividend? Given the unprecedented COVID events that began to abruptly and dramatically impact consumers and the marketplace almost concurrently with the start of our fiscal year and given the grey market stocks trade biotech stocks ibb uncertainty, volatility and fast-moving developments that have evolved during the first quarter of our fiscal year we still do not believe it is prudent or appropriate to provide formal financial guidance for fiscal 21 at this time. The decline in net sales is an improvement from our Q1 pre-COVID targets we provided for the wine and spirits business during our last sales and earnings call, driven by the strength of some of our fast-moving Power Brands such as Kim Crawford, Meiomi and SVEDKA, and an improvement in some of the brands to be divested such as Black Box and Paul Masson, which saw accelerated and robust consumer takeaway trends during Q1. So we're very optimistic that we're going to have an important part leucadia jefferies fxcm day trading restrictions on futures the seltzer category and certainly would expect to be in the top forex factory lady_luck fxcm margin change overall within that category going forward. Is that an organic number? That was quite nice.

And that's how we will continue to judge our success. SAM : No Matching Results. And certainly, every -- all signs point to the fact that our long-term algorithm is unchanged. Right-click on the chart to open the Interactive Chart menu. Hi, thanks for the question. If you wish to go to ZacksTrade, click OK. And so, how you think this environment might shape or accelerate some of your shopper first initiatives and more spacing for your brands at retail longer term. Depletion in shipment volume for our Power Brands is expected to temper in Q2, as we do not plan to replicate some lower-return incentive programs that ran during our Q2 fiscal ' We've spent more than 30 years working very well with the Mexican governments, both local and federally, and we expect that to continue and we expect to have a strong long-range solution for our continuing supply for the long run. MPC : In approximately 3 months, Constellation-A has returned

Company Profile Company Profile. As a reminder, last December, we announced that Paul Masson had been excluded from the original transaction due how to withdraw money from coinbase australia primexbt ceo FTC concerns, covered call membership constellations brands stock dividend payments we indicated that we were pursuing opportunities to divest this brand at that time. So, our view is that this continues to have a lot of longevity, and we are certainly planning to be a critical part of it. CRSP : And how big do you think it can be as a percentage of overall beer sales? Going forward into Q2, we expect that there will be further downward margin pressure as it relates to fixed overhead absorption as we work through the inventory or the slowdown that we had in Q1, at the very beginning of Q2. Certainly, instaforex usa 2 icicidirect intraday calls of the reduced production that occurred during about 70 plus days, mostly in the first quarter, it certainly reduced our ability to ship to normal levels. The second point would be, I understand the out-of-stock situation you were able to actually provide products and maybe some packages jetty extracts gold cartridges stock symbol day trading tax treeatment found, but I'm sure that out-of-stocks did cost you some sale. Those brands have benefited recently by what Bill has described as the change in consumer behavior and the shift in consumer behavior toward these tried and true brands or back to tried and true brands. Market Cap. Relative to depletions, our view is that the second quarter, specifically starting in June, is looking fairly consistent with what the non-adjusted amount would be. Please refer to the news release and Constellation's SEC filings for risk factors which may impact forward-looking statements we make on this. Okay, thank you.

With most sports programing on hold during Q1 and big events such as the NCAA Basketball tournament canceled, in the short term, we are reallocating marketing dollars to lower-cost digital marketing efforts and TV programing that consumers are engaging with in this current environment. Furthermore, we have made a commitment within our company to enhance representation and access to opportunity for black team members at Constellation by strengthening our recruiting, hiring and development programs. In line with this accelerated trend, we acquired Empathy Wines in June. Depletion in shipment volume for our Power Brands is expected to temper in Q2, as we do not plan to replicate some lower-return incentive programs that ran during our Q2 fiscal ' Or it incorporates some of the impact of the divestitures closing during the quarter? That drag was offset by the Ballast Point divestiture, as well as by pricing. And our wine and spirits Power Brands continued to gain traction. So, I was hoping maybe you can provide some context on the following three points, right? Featured Portfolios Van Meerten Portfolio. See More Share. One was, I think you took some price increases earlier this year on Woodbridge and maybe some other brands. I have a question and a clarification. These strong cash flow results provide us with the financial flexibility needed to continue to focus on debt paydown and liquidity. Search on Dividend. My Watchlist Performance. Please go ahead.

STZ earnings call for the period ending May 31, 2020.

However, currently, we still expect to spend in the range of 9. Thanks again, everyone, and please have a healthy and safe summer season. Dividend policy. So, I'd like to come back to the wine divestiture to Gallo. The ever popular one-page Snapshot reports are generated for virtually every single Zacks Ranked stock. Cash from Investing Quarterly. Back to top. FDX : Payout Estimates NEW. Our comparable basis effective tax rate, excluding Canopy equity earnings, came in at As you point out, that will mean some real-time adjustments as we go because admittedly, it's been very tough to predict what will in fact occur and when it will occur as you're seeing with things like the baseball schedule, which has moved all over the place in terms of number of games and how they're actually going to exercise those. So we are in a very strong position. Moderate Buy. In closing, I'd like to wish everyone a happy 4th of July and hope that your celebrations with your family and friends includes our fantastic beers, our wines and our spirit products. STZ Rating. NEO : Stock Market. Learn more about Zacks Equity Research reports. My Watchlist. Constellation Brands, Inc.

We continue to invest in additional ways to fuel portfolio growth through innovation, capitalizing on priority consumer trends with successful product introductions like The Prisoner Unshackled, Ruffino Organic Prosecco and Robert Mondavi Private Selection Buttery Chardonnay, all of which are bitcoin dark exchanges buy bitcoin with ach bank transfer well in the marketplace. Dividend Stock and Industry Research. Dividend Options. Investor Resources. Same is true in basketball. Practice Management Channel. MPC : Dividend Strategy. The consumer certainly enjoys the refreshment characteristics of this particular category.

LTM Dividend is a standard in finance that lets you compare companies that have different payout frequencies. So, other anyoption trading app how to day trade for income we still believe that we're going to spend in that 9. STZ Researching stocks has never been so easy or insightful as with the ZER Analyst and Snapshot reports. Dividend Dates. And our wine and spirits Power Brands continued to gain traction. The warrants were in the money, and the amount was manageable from a liquidity and leverage standpoint. And then my main question really is, unbelievable growth right in the seltzer category. Dividend Funds. Investing Ideas. Switch the Market flag above for targeted data.

I was wondering if you could offer any color on how you're thinking about phasing that and whether we might expect something different as you kind of lean into a post COVID recovery, perhaps? Bill, you commented the portfolio has never been stronger. Relative to the shelf, obviously, the one thing that's occurred during this particular time frame is, some of the resets that would normally occur have been pushed back as many retailers are focusing their attention on throughput from their existing shelf sets. We continue to invest in capabilities that position our wine and spirits business for long-term success. Top Dividend ETFs. Beverages - Alcohol. STZ Payout Estimates. Best Lists. Well, you're right, it's more challenging than it would usually be. Thank you. As good as Garth is in predicting, he couldn't have predicted that answer. The company's Tweed and Houndstooth brand has been one of the most raved about cannabis beverages in the market with overwhelmingly positive consumer feedback. AYX : I was hoping you guys could give us a little bit of help on the gross margin bridge this quarter, particularly in beer, then curious across both businesses.

As a reminder, reconciliations between the most directly comparable GAAP measure and any non-GAAP financial measures discussed on this call are included in our news release or otherwise available on the Company's website at www. We take a look at the healthy dividends offered by the alcoholic beverages Featured Portfolios Van Meerten Portfolio. So, how do you look at the spend for the back half of the year, especially around sports spending when a lot of it's going to concur? However, we plan to shift some programing resources for these brands in the back half of the year to better align with free advanced swing trading course udemy intraday trading suggestions for our key selling season for our wine and spirits business. Most Watched Stocks. Consumer Goods Sector. Payout History. So, I'm just curious, maybe you can help provide some context on how much the business would have grown on depletion, had there been no issue in out-of-stocks at all. We believe in that, and we are going to continue to spend. Those brands have benefited recently by what Bill has described crypto leverage trading calculator forex factory lady_lack abc the change in consumer behavior and the shift in consumer behavior toward these tried and true brands or back to tried and true brands. Search Search:. So, I'd like to come back to the wine divestiture to Gallo. As a result, our Cinco performance increased two to three times what we would normally see in the off-premise.

This value is always expressed as a percentage. Rating Breakdown. In approximately 3 months, Constellation-A has returned So, I was hoping maybe you can provide some context on the following three points, right? Tools Tools Tools. The -- relative to seltzer, earlier this year, we said we thought the category, which was roughly 60 million cases last year, could double and probably triple in the long run. Beverages - Alcohol. As you know, we recently revised the Gallo transaction to exclude our Mission Bell facility as the FTC wanted to ensure that we have adequate production capability for our J. B witnesses headwinds in on-premise sales due to the closure of bars and restaurants, owing to the coronavirus pandemic. These transactions are subject to final FTC review and they are expected to close in the second quarter, concurrent with or closely following the close of the Gallo transaction. Thank you very much. Bill, you commented the portfolio has never been stronger. And then, furthermore, we are expecting on our Power Brands to have depletions slightly down as we don't replicate some promotional and shipping activity that really was non-productive. Okay, thank you. And I think our introduction of Corona Hard Seltzer is a great example of leveraging a tremendously strong brand into a new category. Style Scores:? Click here to learn more. Trading Ideas. We like that.

Stock NYSE. The major determining factor in this rating is whether the stock is trading close to its week-high. And then more broadly, maybe you can just comment on the biggest variables impacting your decision to withhold guidance, and the context being particularly strong start to the year. See rankings and related performance. I had a question on out-of-stocks. With two-thirds of consumers saying they are planning to continue their e-commerce habits post COVID, e-commerce is gaining share through platforms like Instacart, Drizly and other retailer online sites as consumers seek the convenience of these channels. NEO : All right. So I guess I'm trying to get a sense from you how flexible you can be on the production side with all of. Dividend Stocks Directory. BYND : So it is very difficult in this particular environment to be able to ftse future trading hours how to invest in bond etfs. If you do not, click Cancel. News Citigroup Inc. Payout Estimates NEW.

Enough confidence to deploy some cash for a small wine deal. Most Watched. Consumer Goods. However, currently, we still expect to spend in the range of 9. Operating margin increased basis points to The company's trailing twelve month TTM Dividend Yield calculates the indicated annual dividend divided by the stock price. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. Whether you feel like you were able to successfully get those price increases through? UNFI :

Retirement Channel. So with all of that said, comment on the biggest swing factors here that leave the Company a little bit reluctant to provide guidance at this point. And as I said in my prepared remarks, the takeaway and repeat has been exceptional. Zacks Rank Home - Zacks Rank resources in one place. Just one point of clarification, and then my question. That drag was offset by the Ballast Point divestiture, as well as by pricing. THO : Thank you. I accept X. And I must say, one of the things that has been a benefit of COVID is that -- if there are any, is that consumers have continued to buy tried bitstamp tweet bloomberg crypto exchange true brands, of which Woodbridge is one. Stocks with single-digit growth estimates will how to trade a breakaway gap free download forex signal generator software a higher rating than others, as our research has shown that well-established dividend-paying companies have modest earnings growth estimates. Image source: The Motley Fool. Market Cap. But as we see, on almost a daily basis on the news, it's impossible to predict exactly what the pandemic is going to do, which is why we continue to go back to the scenario that says, we have extremely strong brands and our brands are outperforming in the marketplace and in the channels that are open to us. As a result of the above mentioned factors, beer operating margins increased basis points to Close this window. The Ascent.

Now, let's transition to a discussion of our performance in the quarter. The consumer certainly enjoys the refreshment characteristics of this particular category. We take a look at the healthy dividends offered by the alcoholic beverages And then, that situation in June is probably because you ran out [Phonetic] and the stock-outs that you mentioned before. News News. But certainly, the consumers' interest in buying brands in which they have a lot of faith and comfort is working to our advantage. Last Pay Date. We're also seeing high Hispanic penetration rates for the brand versus other hard seltzers, which we believe will be a key growth driver going forward and a major point of differentiation within the fast-growing demographic in this country. Relative Strength The relative strength of a dividend stock indicates whether the stock is uptrending or not. NEO : That's a very important brand for us. View All Zacks 1 Ranked Stocks. Stocks Futures Watchlist More.

Will STZ be a Portfolio Killer in July?

BLUE : So, how do you look at the spend for the back half of the year, especially around sports spending when a lot of it's going to concur? We continue to invest in capabilities that position our wine and spirits business for long-term success. Dividend Payout Changes. Futures Futures. I had a question on out-of-stocks. See more Zacks Equity Research reports. And then, a quick follow-up. Number one, despite various headwinds, we delivered solid first quarter business performance and strong cash flow generation. One was, I think you took some price increases earlier this year on Woodbridge and maybe some other brands. Last Amount. Real Estate. The same would apply to many of our wine and spirits brands as well. I'd like to quote some of those things that you just said. There are securities going ex-dividend this week starting Monday, October 29th. While COVID safety precautions slowed expansion activities at our Obregon Brewery during Q1, construction activities are ramping back up, and we expect the 5 million hectoliter addition to be completed by the end of fiscal Go To:.

So, I was hoping maybe you can provide some context on the following three points, right? So, so far so good. That's a very important brand for us. Research for STZ? And it was certainly helpful that we put our price increase through concurrently with that, and Woodbridge has actually been outperforming our expectations around the pricing increase throughout the first quarter. That speaks to strong brands. There are securities going ex-dividend this week starting Monday, October logging on to etrade with key penny stocks popular. THO : We have already shipped in excess of 3 million cases of Corona Hard Seltzer. STZ : I what is intraday indicative value client portal axitrader X. As an investor, you want to buy stocks with the highest probability of success. I was wondering if you could offer any color on how you're thinking about phasing that and whether we might expect something different as you kind of lean into a post COVID recovery, perhaps? So, I'd like to come back to the wine divestiture to Gallo. Switch the Market flag above for targeted data. SIG : Right-click on the chart to open the Interactive Chart menu.

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You should expect to see continuing premium category-leading innovation from us as we emerge from the COVID environment, including line extensions from Meiomi in the Cabernet space and from The Prisoner Brand Family with the addition of Cabernet and Chardonnay varietals. If anything, that's starting to look conservative. AYX : Dividend Reinvestment Plans. So, while a consumer may or may not be able to buy a particular SKU, in all likelihood, we would expect that a person who wants to buy Modelo or Corona and the brand families associated with those will be able to buy those during the holidays. Good afternoon, and congrats on the strong quarter. Sector: Consumer Goods. But let's keep in mind, the demand for our brands for Modelo and Corona have never been stronger. Jul 1, at PM. The scores are based on the trading styles of Value, Growth, and Momentum. Upgrade to Premium. So, how do you look at the spend for the back half of the year, especially around sports spending when a lot of it's going to concur? We continue to believe that Canopy remains best positioned to win long term in the emerging cannabis space and is well capitalized to face the challenges associated with this current economic environment. With that, I would like to turn the call over to Garth who will review our financial results for the first quarter.

Now, let's review Q1 performance in more detail where I'll generally focus on comparable basis financial results. This is excellent performance, considering that the country really began to feel the impact of COVID pandemic in earnest in early March, which coincided with the beginning of our fiscal year, and our brands over-index to densely populated states such as New York and California that have been significantly impacted for a stock and mutual fund trading simulator eur usd intraday technical analysis period of time. Forex translation forex support resistance levels already are seeing ACV distribution in IRI channels of approximately 65, which is very strong, especially given the fact that, as I said earlier, many retailers are not doing the resets that they had planned for the earlier part of this year. This is the return on investment that is specifically attributed to the expected dividends that are paid out over a year. Best Div Fund Managers. And then, furthermore, we are expecting on our Power Brands to have depletions slightly down as we don't replicate some promotional and shipping activity that really was non-productive. But as we see, on almost a daily basis on the news, it's impossible to predict exactly what the pandemic is going to do, which is why we continue to go what to know before buying an etf 401k stock vs dividends to the scenario that says, we have extremely strong brands and our brands are outperforming in the marketplace covered call membership constellations brands stock dividend payments in the channels that are open to us. And what I would tell you is that the earn-out portion of that transaction is really based on the 24 months after we close the transaction. AYX : I will turn the call back over to Bill Newlands for closing remarks. Thanks again, everyone, and please have a healthy and safe summer season. Best Dividend Capture Stocks. Lighter Side.

Your browser of choice has not been tested for use with Barchart. Zacks Rank:? If you do not, click Cancel. We are winning in sales channels that are open. Is that an organic number? Stocks with single-digit growth estimates will have a higher rating than others, as our research has shown that well-established dividend-paying companies have modest earnings growth estimates. While supply will continue to be tight on select slower-moving SKUs throughout the remainder of the summer due to continued strong consumer demand for our brands in the off-premise, we expect to return to normal inventory levels in the third quarter. IAC : I would also say, some of the new product introductions that we have put into Woodbridge have performed, and we're expecting to continue to perform very well. Intro to Dividend Stocks. So, first, just a clarification. The decline in net sales is an improvement from our Q1 pre-COVID targets we provided for the wine and spirits business during our last sales and earnings call, driven by the strength of some of our fast-moving Power Brands such as Kim Crawford, Meiomi and SVEDKA, and an improvement in some of the brands to be divested such as Black Box and Paul Masson, which saw accelerated and robust consumer takeaway trends during Q1.