Constellation Brands Earnings: What To Look For From STZ

Beer, wine, and spirits company Constellation Brands (NYSE:STZ) will be reporting earnings tomorrow before market open. Here’s what you need to know.

Constellation Brands met analysts’ revenue expectations last quarter, reporting revenues of $2.66 billion, up 5.8% year on year. It was a strong quarter for the company, with optimistic earnings guidance for the full year and a decent beat of analysts’ gross margin estimates.

Is Constellation Brands a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Constellation Brands’s revenue to grow 3.6% year on year to $2.94 billion, slowing from the 6.8% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $4.07 per share.

Heading into earnings, analysts covering the company have grown increasingly bearish with revenue estimates seeing 10 downward revisions over the last 30 days. Constellation Brands has missed Wall Street’s revenue estimates three times over the last two years.

Looking at Constellation Brands’s peers in the consumer staples segment, some have already reported their Q3 results, giving us a hint as to what we can expect. McCormick posted flat year-on-year revenue, meeting analysts’ expectations, and General Mills reported a revenue decline of 1.2%, in line with consensus estimates. General Mills’s stock price was unchanged following the results.

Read our full analysis of McCormick’s results here and General Mills’s results here.

Investors in the consumer staples segment have had steady hands going into earnings, with share prices flat over the last month. Constellation Brands is up 4.4% during the same time and is heading into earnings with an average analyst price target of $297.40 (compared to the current share price of $257.68).

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