Constellation Brands (STZ) Reports Earnings Tomorrow: What To Expect
Beer, wine, and spirits company Constellation Brands (NYSE:STZ) will be reporting results this Tuesday after the bell. Here’s what you need to know.
Constellation Brands beat analysts’ revenue expectations last quarter, reporting revenues of $2.43 billion, down 3.3% year on year. It was a satisfactory quarter for the company, with a solid beat of analysts’ organic revenue estimates but full-year revenue guidance slightly missing analysts’ expectations.
Is Constellation Brands a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Constellation Brands’s revenue to grow 2.1% year on year, a reversal from the 15% decrease it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Constellation Brands has missed Wall Street’s revenue estimates multiple 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. Conagra’s revenues decreased 1.4% year on year, meeting analysts’ expectations, and General Mills reported a revenue decline of 2.8%, topping estimates by 0.9%. Conagra traded down 6.6% following the results while General Mills was also down 1.7%.
Read our full analysis of Conagra’s results here and General Mills’s results here.
Over the last year or so, investors' attention has moved from one major market theme to the next, spanning AI disruption and surging infrastructure investment to geopolitical tensions, interest rates, and the health of the broader economy. While some of the consumer staples stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 6.5% on average over the last month. Constellation Brands is down 6.6% during the same time and is heading into earnings with an average analyst price target of $163.35 (compared to the current share price of $113.04).
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