Constellation Brands (STZ) Expected to Post Earnings of $2.49 Per Share

Wall Street brokerages expect Constellation Brands (NYSE:STZ) to announce $2.49 earnings per share for the current quarter, Zacks reports. Five analysts have made estimates for Constellation Brands’ earnings, with the lowest EPS estimate coming in at $2.43 and the highest estimate coming in at $2.54. Constellation Brands reported earnings of $2.34 per share during the same quarter last year, which indicates a positive year-over-year growth rate of 6.4%. The business is expected to announce its next quarterly earnings report on Thursday, July 5th.

On average, analysts expect that Constellation Brands will report full-year earnings of $9.68 per share for the current year, with EPS estimates ranging from $9.44 to $9.91. For the next financial year, analysts forecast that the firm will report earnings of $10.88 per share, with EPS estimates ranging from $10.71 to $11.10. Zacks’ EPS averages are an average based on a survey of sell-side research analysts that follow Constellation Brands.

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Constellation Brands (NYSE:STZ) last released its earnings results on Thursday, March 29th. The company reported $1.90 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.74 by $0.16. The company had revenue of $1.77 billion for the quarter, compared to analyst estimates of $1.76 billion. Constellation Brands had a return on equity of 22.28% and a net margin of 27.85%. Constellation Brands’s quarterly revenue was up 8.5% on a year-over-year basis. During the same period in the prior year, the firm posted $1.48 EPS.

Several analysts recently weighed in on the company. Zacks Investment Research lowered Constellation Brands from a “hold” rating to a “sell” rating in a research note on Tuesday, March 13th. Pivotal Research raised their price objective on Constellation Brands from $265.00 to $285.00 and gave the company a “buy” rating in a research note on Thursday, March 29th. Susquehanna Bancshares set a $207.00 price objective on Constellation Brands and gave the company a “hold” rating in a research note on Monday, January 1st. ValuEngine raised Constellation Brands from a “hold” rating to a “buy” rating in a research note on Monday, April 2nd. Finally, Stifel Nicolaus lowered Constellation Brands from a “buy” rating to a “hold” rating and reduced their price objective for the company from $245.00 to $228.00 in a research note on Monday, April 2nd. They noted that the move was a valuation call. Seven investment analysts have rated the stock with a hold rating, sixteen have given a buy rating and two have issued a strong buy rating to the stock. The stock currently has a consensus rating of “Buy” and a consensus target price of $245.77.

NYSE:STZ opened at $225.50 on Wednesday. The stock has a market capitalization of $44,045.35, a P/E ratio of 25.93, a price-to-earnings-growth ratio of 1.27 and a beta of 0.09. The company has a current ratio of 1.79, a quick ratio of 0.71 and a debt-to-equity ratio of 1.17. Constellation Brands has a twelve month low of $168.44 and a twelve month high of $231.83.

Constellation Brands announced that its board has approved a stock repurchase program on Friday, January 5th that allows the company to buyback $3.00 billion in shares. This buyback authorization allows the company to reacquire shares of its stock through open market purchases. Shares buyback programs are typically a sign that the company’s board of directors believes its stock is undervalued.

The firm also recently announced a quarterly dividend, which will be paid on Thursday, May 24th. Investors of record on Thursday, May 10th will be paid a dividend of $0.74 per share. The ex-dividend date of this dividend is Wednesday, May 9th. This represents a $2.96 annualized dividend and a yield of 1.31%. This is a boost from Constellation Brands’s previous quarterly dividend of $0.52. Constellation Brands’s dividend payout ratio (DPR) is currently 10.67%.

In other Constellation Brands news, Director Barry A. Fromberg sold 2,005 shares of the firm’s stock in a transaction that occurred on Tuesday, January 30th. The stock was sold at an average price of $220.42, for a total value of $441,942.10. Following the completion of the sale, the director now owns 20,790 shares of the company’s stock, valued at $4,582,531.80. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Barry A. Fromberg sold 3,000 shares of the firm’s stock in a transaction that occurred on Monday, April 2nd. The shares were sold at an average price of $229.22, for a total value of $687,660.00. The disclosure for this sale can be found here. Insiders have sold 22,905 shares of company stock valued at $5,218,499 in the last ninety days. 15.59% of the stock is currently owned by insiders.

A number of institutional investors have recently made changes to their positions in STZ. Bessemer Group Inc. grew its stake in Constellation Brands by 153.1% in the fourth quarter. Bessemer Group Inc. now owns 529 shares of the company’s stock valued at $121,000 after acquiring an additional 320 shares during the period. Cerebellum GP LLC acquired a new stake in Constellation Brands in the fourth quarter valued at approximately $134,000. Trustcore Financial Services LLC acquired a new stake in Constellation Brands in the fourth quarter valued at approximately $142,000. Valeo Financial Advisors LLC purchased a new position in shares of Constellation Brands during the third quarter valued at approximately $153,000. Finally, Calton & Associates Inc. purchased a new position in shares of Constellation Brands during the fourth quarter valued at approximately $153,000. 74.56% of the stock is owned by hedge funds and other institutional investors.

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Constellation Brands Company Profile

Constellation Brands, Inc, together with its subsidiaries, produces, imports, and markets beer, wine, and spirits in the United States, Canada, Mexico, New Zealand, and Italy. The company sells wine across various categories, including table wine, sparkling wine, and dessert wine. It offers beer primarily under the Corona Extra, Corona Light, Modelo Especial, Modelo Negra, and Pacifico brands; wine under the Black Box, Clos du Bois, Estancia, Franciscan Estate, Inniskillin, Kim Crawford, Mark West, Meiomi, Mount Veeder, Nobilo, Robert Mondavi, Ruffino, Saved, Simi, The Dreaming Tree, The Prisoner, Charles Smith, and Wild Horse brands; and sprits under the SVEDKA vodka, Black Velvet Canadian whisky, Casa Noble tequila, High West craft whisky brands.

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Earnings History and Estimates for Constellation Brands (NYSE:STZ)

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