Companies and Brands

What to Expect When Constellation Brands Reports

Chris Lange

Published: October 3, 2018 10:15 am

Last Updated: January 11, 2020 4:57 pm

Constellation Brands Inc. (NYSE: STZ) is scheduled to release its fiscal second-quarter financial results before the markets open on Thursday. The consensus forecast calls for $2.60 in earnings per share (EPS) and $2.25 billion in revenue. That would be up from the $2.47 per share and $2.08 billion posted in the same period of last year.

In mid-August, Constellation Brands launched a strategic partnership with Canopy Growth Corp. (NYSE: CGC). According to the deal announced, Constellation Brands will increase its ownership interest in Canopy Growth by acquiring 104.5 million shares directly from the company, thereby achieving roughly 38% ownership.

Rob Sands, CEO of Constellation Brands, commented:

Through this investment, we are selecting Canopy Growth as our exclusive global cannabis partner. Over the past year, we’ve come to better understand the cannabis market, the tremendous growth opportunity it presents, and Canopy’s market-leading capabilities in this space. We look forward to supporting Canopy as they extend their recognized global leadership position in the medical and recreational cannabis space.

Overall, Constellation Brands has underperformed the broad markets, with its stock up about 7% in the past 52 weeks. In just 2018 alone, the stock was down 7%.

A few analysts weighed in on Constellation Brands ahead of the report:

• Jefferies has a Buy rating with a $283 price target.
• Susquehanna has a Negative rating and a $165 target.
• JPMorgan has an Overweight rating.
• OTR Global has a Positive rating.
• Morgan Stanley has a Buy rating and a $251 price target.
• Evercore ISI has a Buy rating with a $255 price target.
• Guggenheim has a Sell rating with a $177 target price.
• SunTrust Banks has a Hold rating with a $220 target.

Shares of Constellation Brands were last seen trading at $212.65, with a consensus analyst price target of $243.73 and a 52-week range of $198.85 to $236.62.