New York-headquartered Constellation Brands, Inc. (STZ), a leading international producer and marketer of beer, wine, and spirits, with a market cap of $46.8 billion, is expected to announce its fiscal Q1 earnings for 2024, before the market opens on Wednesday, July 3.
Ahead of the event, analysts expect Constellation Brands to report a profit of $3.46 per share, an 18.9% jump from $2.91 per share in the year-ago quarter. The company has consistently surpassed Wall Street’s bottom-line estimates in its recent quarterly reports. Its adjusted earnings of $2.26 per share for the last reported quarter surged 14.1% year over year, beating the consensus estimate by 7.6%. This success is fueled by robust beer sales, especially Modelo Especial, along with favorable pricing and efficient cost management, driving impressive net sales and operating income growth.
For fiscal 2025, analysts expect Constellation Brands to report EPS of $13.67, up 13.4% from $12.06 in fiscal 2024. Fiscal 2026 EPS is expected to grow 10.3% annually to $15.08.
STZ stock has rallied 6.4% on a YTD basis, underperforming the broader S&P 500 Index's ($SPX) 14.5% gain while slightly edging past the S&P 500 Cons Staples Sector SPDR’s (XLP) 6.3% return over the same time frame.
After Constellation Brands’ stellar Q4 earnings on April 11, its shares soared. The market was optimistic, as the company projected an upbeat profit forecast for fiscal 2025, surpassing Wall Street's expectations. Investors were thrilled by the robust growth in Constellation’s core beer segment and its strategic focus on premiumization and innovation in its wine and spirits, and beer portfolios.
The company had grappled with rising raw material, packaging, and logistics costs due to high inflation. These elevated expenses are expected to squeeze margins, reflecting higher overhead costs from brewery expansion and increased shipment volumes, casting a shadow on future profits.
The consensus opinion on Constellation Brands stock is bullish, with a “Strong Buy” rating overall. Out of 20 analysts covering the stock, 17 advise a “Strong Buy” rating, one suggests a “Moderate Buy” rating, and the remaining two analysts are playing it safe with a “Hold” rating. The average analyst price target for Constellation Brands is $299.45, indicating a potential upside of 16.4% from the current levels.
On the date of publication, Sristi Jayaswal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
