Beer, wine, and spirits company Constellation Brands (NYSE:STZ) will be reporting earnings tomorrow before market open. Here’s what investors should know.
Constellation Brands missed analysts’ revenue expectations by 0.7% last quarter, reporting revenues of $2.92 billion, up 2.9% year on year. It was a satisfactory quarter for the company, with an impressive beat of analysts’ EBITDA estimates but a miss of analysts’ organic revenue 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 2.6% year on year to $2.53 billion, improving from the 1.4% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $3.31 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Constellation Brands has missed Wall Street’s revenue estimates four times over the last two years.
Looking at Constellation Brands’s peers in the consumer staples segment, some have already reported their Q4 results, giving us a hint as to what we can expect. General Mills delivered year-on-year revenue growth of 2%, beating analysts’ expectations by 1.9%, and Simply Good Foods reported revenues up 10.6%, falling short of estimates by 1.7%. General Mills traded down 2.9% following the results.
Read our full analysis of General Mills’s results here and Simply Good Foods’s results here.
Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, but the market has been optimistic as of late due to a soft landing. This is an economic situation where rate hikes successfully quelled inflation but did not send the economy into a recession. Furthermore, recent rate cuts and Donald Trump's triumph in the 2024 Presidential election have been tailwinds for the market, and while some of the consumer staples stocks have shown solid performance, the group has generally underpeformed, with share prices down 7.3% on average over the last month. Constellation Brands is down 8.2% during the same time and is heading into earnings with an average analyst price target of $283.92 (compared to the current share price of $220.25).
Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we’ve identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link.
