What to Expect When Constellation Brands Reports

By Chris Lange Updated Jan 11, 4:57PM EST · Published Oct 3, 10:15AM EDT

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What to Expect When Constellation Brands Reports — © Shane808 / iStock

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.

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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.

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About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.