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Constellation Brands Inc. (STZ - Analyst Report) is slated to report its first-quarter fiscal 2014 results on Jul 2, 2013. In the last quarter, it posted a positive surprise of 4.4%. Let us see how things are shaping up for this announcement.

Constellation Brands has a portfolio of renowned brands and is the largest wine company in the world. The company’s consistent focus on brand building and its initiatives to include new products in its wine and spirits business are the key revenue drivers for the stock.

Owing to its strategic endeavors, the company is witnessing steady depletion trends and an increasing market share in the U.S. wine and spirits category. Moreover, the company is increasing its distribution points in retail and effectively executing its strategic merchandising initiatives, aimed to bolster sales. Owing to these factors, Constellation Brands posted better-than-expected results in the previous quarter.

The Zacks Consensus Estimate for the first quarter currently stands at 40 cents per share, which rose by a penny in the last 60 days. However, no change was noticed in the last 7 or 30 days. For fiscal 2014, the Zacks Consensus Estimate is pegged at $2.87 per share, up 5 cents in the last 60 days. It inched up by a penny in the last 30 days but no movement was noticed in the last 7 days.

Looking at the earnings surprise history of Constellation Brands, this Zacks Rank #2 (Buy) stock has outperformed the Zacks Consensus Estimate in the last 5 quarters by an average of 26.9%.

Our proven model shows that for a stock to beat earnings estimate this quarter, it needs to have a combination of two key components – a positive Earnings ESP (Read: Zacks Earnings ESP: A Better Method) and a Zacks Rank #1, 2 or 3. Stocks with Zacks Rank #1, 2 and 3 have a significantly higher chance of beating earnings estimates. The sell-rated stocks (Zacks Rank #4 and 5) should never be considered going into an earnings announcement.

Other Stocks to Consider

Here are some other companies you may want to consider, as our model shows that they have the right combination of elements to post an earnings beat this quarter:

Pacific Sunwear of California Inc. (PSUN - Snapshot Report), Earnings ESP of +100.0% and a Zacks Rank #2 (Buy).

Gap Inc. (GPS - Analyst Report), Earnings ESP of +3.45% and a Zacks Rank #2 (Buy).

Boston Beer Co. Inc. (SAM - Snapshot Report), Earnings ESP of +1.48% and a Zacks Rank #3 (Hold).

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