Companies and Brands

What to Expect From Constellation Brands Earnings

Chris Lange

Published: October 4, 2016 11:10 am

Last Updated: January 13, 2020 2:49 am

Constellation Brands Inc. (NYSE: STZ) is set to report its fiscal second-quarter financial results before the markets open on Wednesday. Consensus estimates are calling for $1.66 in earnings per share (EPS) on $1.14 billion in revenue. The same period from last year had $1.56 in EPS on $1.73 billion in revenue.

Over the past year, the company’s beer business delivered industry-leading market results as the top growth contributor in the U.S. beer category, achieving stellar growth across the portfolio. In this time, the company also acquired Ballast Point, one of the most awarded, major craft brewers in the industry, and it solidified its position in the high-end segment of the U.S. beer market.

In the wine and spirits business, the company further strengthened the financial profile by channeling resources and brand-building investments toward higher-growth, higher-margin brands. This strategy, combined with the Meiomi wine acquisition, helped to drive healthy margin expansion and earnings growth.

Overall, Constellation Brands has been building on the success of fiscal 2016, as it is targeting impressive results for the coming year.

Prior to the release of the earnings report, analysts weighed in on the stock:

• Merrill Lynch reiterated a Buy rating with a $185 price target.
• RBC Capital Markets has a Buy rating with a $181 price target.
• Credit Suisse has a Neutral rating with a $178 price target.
• Morgan Stanley reiterated a Buy rating.
• Credit Agricole reiterated an Outperform rating.
• Susquehanna reiterated a Hold rating.
• Goldman Sachs reiterated a Buy rating.

So far in 2016, Constellation Brands has outperformed the broad markets, with the stock up 17%. Over the past 52 weeks, the stock is up 29%.

Shares of Constellation Brands were trading at $165.59 on Tuesday. The stock has a consensus analyst price target of $179.94 and a 52-week trading range of $130.23 to $168.68.