What Analysts Are Saying About Constellation Brands After Earnings

By Chris Lange Updated Jan 31, 2:15AM EST · Published Jan 10, 11:30AM EST

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What Analysts Are Saying About Constellation Brands After Earnings — © artisteer / iStock

Constellation Brands Inc. (NYSE: STZ | STZ Price Prediction) reported its most recent quarterly results on Wednesday and while things immediately took a turn for the worse, the outlook doesn’t appear as bad as once thought, at least according to the analysts.

24/7 Wall St. has included some highlights from the report, as well as what analysts said about the stock after the fact.

The company reported that it had $2.37 in earnings per share (EPS) and $1.97 billion in revenue, compared with consensus estimates of $2.06 in EPS and revenue of $1.91 billion. The same period of last year reportedly had EPS of $2.00 on $1.8 billion in revenue.

Constellation Brands also noted that it completed an additional $4 billion investment in Canopy Growth in early November.

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The board of directors declared a quarterly cash dividend of $0.74 per share of Class A shares and $0.67 per share of Class B shares, payable on February 26, 2019, to stockholders of record as of the close of business on February 12.

Looking ahead to the fiscal full year, the company expects to see EPS in the range of $9.20 to $9.30, with operating cash flow of $2.35 billion to $2.55 billion. Consensus estimates call for $9.43 in EPS and $8.14 billion in revenue.

Here’s what analysts said following the report:

BMO Capital Markets has an Outperform rating with a $225 price target.
Wells Fargo has an Outperform rating but lowered its target to $235 from $260.
SunTrust reiterated a Hold rating.
Citigroup has a Neutral rating with a $168 price target.
Goldman Sachs upgraded it to Buy from Neutral with a $211 target.
Guggenheim upgraded it to a Neutral rating from Sell.
Pivotal Research reiterated a Buy rating but lowered its target to $265 from $300.

Shares of Constellation Brands were last seen up about 6% at $159.90, in a 52-week range of $150.37 to $236.62. The consensus analyst price target is $238.87.

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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.