New York-based Constellation Brands, Inc. (STZ) is a leading producer and marketer of beer, wine, and spirits with a market cap of $47.3 billion. The company boasts a strong portfolio of premium brands, including Corona, Modelo, Robert Mondavi, and SVEDKA Vodka, serving markets in the U.S., Canada, Mexico, and beyond. The company is expected to announce its fiscal Q2 earnings results before the market opens on Thursday, Oct. 3.
Ahead of the event, analysts expect the alcohol company to report a profit of $4.11 per share, up 11.1% from $3.70 per share in the year-ago quarter. The company has surpassed Wall Street's bottom-line estimates in each of the past four quarters. In Q1, the company reported an EPS of $3.57, beating the consensus estimates by almost 3.2%.
For fiscal 2025, analysts expect STZ to report an EPS of $13.53, up 12.2% from $12.06 in fiscal 2024. In addition, EPS is expected to grow 11.5% year-over-year growth to $15.09 in fiscal 2026.
Shares of Constellation Brands have increased 3.1% over the past 52 weeks, underperforming both the S&P 500 Index's ($SPX) 34.2% rise and the Consumer Staples Select Sector SPDR Fund's (XLP) 20.6% increase over the same period.
Despite reporting better-than-expected Q1 adjusted EPS of $3.57, shares of Constellation Brands dipped 3.3% on Jul. 3 due to concerns over the company's slightly weaker-than-expected net sales of $2.66 billion, falling short of analysts' estimates of $2.67 billion. The sluggish performance of its wines and spirits division further contributed to investor apprehension, despite strong growth in its core beer business. Additionally, while Constellation's beer segment showed volume growth, the broader consumer slowdown in the U.S. weighed on overall market sentiment.
Analysts' consensus view on Constellation Brands stock is bullish, with a "Strong Buy" rating overall. Among 19 analysts covering the stock, 16 recommend a "Strong Buy," one suggests a "Moderate Buy," and two give a "Hold" rating. This configuration is less bullish than three months ago, with 17 analysts suggesting a "Strong Buy."
The average analyst price target for STZ is $298.15, suggesting a potential upside of 14.9% from the current levels.
On the date of publication, Sohini Mondal 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.
