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Constellation Brands (STZ) Q4 Earnings: What's in Store?
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Constellation Brands, Inc. (STZ - Free Report) is slated to report fourth-quarter fiscal 2017 results on Apr 6, 2017. The big question facing investors is, whether this leading alcohol company will be able to maintain its positive earnings streak in the to-be-reported quarter.
In fact, its earnings have outperformed the Zacks Consensus Estimate by an average of 6.7% in the trailing four quarters. Let’s see how things are shaping up for this announcement.
The Zacks Consensus Estimate for the fiscal fourth quarter has increased by a penny, over the last 30 days. However, the same has been stable for fiscal 2017 in the said time period. The current Zacks Consensus Estimate of $1.37 per share for the fiscal fourth quarter reflects year-over-year growth of 14.9%. Further, analysts polled by Zacks expect revenues of $1.59 billion, which is 2.8% higher than the year-ago quarter.
Our proven model does not conclusively show that Constellation Brands is likely to beat earnings estimates this quarter. This is because a stock needs to have both a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) and a positive Earnings ESP for this to happen. You may uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Constellation Brands’ Earnings ESP is 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at $1.37. Although the company’s Zacks Rank #3 increases the predictive power of ESP, we need a positive Earnings ESP in order to be confident about an earnings surprise.
Note that we caution against stocks with Zacks Ranks #4 or 5 (Sell rated) going into an earnings announcement, especially when the company is seeing a negative estimate revision.
Factors Influencing this Quarter
Shares of Constellation Brands have gained 8.3% in the past one year, outperforming the Zacks categorized Beverages – Alcoholic industry’s decrease of 0.3%. This is mainly due to its superb earnings surprise history.
The company’s focus on brand building, strength in its beer business and efforts to include new products in its wine and spirits portfolio are the key growth drivers. Further, it has been gaining from effective integration and growth of recently acquired brands, higher margins, solid overall depletion trends and strong consumer demand.
In fact, these factors assisted the company to post its ninth and fifth straight earnings and sales beat, respectively, in the last reported quarter. Further, the company’s raised fiscal 2017 earnings outlook inspires optimism. Management envisions adjusted earnings in the range of $6.55–$6.65 per share compared with $6.30–$6.45, projected earlier.
While these factors make us optimistic about Constellation Brands’ upcoming results, we prefer to remain cautious, given the intense competition in the industry, and the risk of increasing taxes.
Stocks Poised to Beat Earnings Estimates
Here are some companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:
Newell Brands Inc. (NWL - Free Report) is expected to release earnings on May 5. It has an Earnings ESP of +13.79 and a Zacks Rank #3.
Yum China Holdings, Inc. (YUMC - Free Report) is expected to release earnings on Apr 5. It has an Earnings ESP of +2.86% and a Zacks Rank #3.
The Best Place to Start Your Stock Search
Today, you are invited to download the full list of 220 Zacks Rank #1 ""Strong Buy"" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 ""Strong Sells"" and other private research. See these stocks free >>
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Constellation Brands (STZ) Q4 Earnings: What's in Store?
Constellation Brands, Inc. (STZ - Free Report) is slated to report fourth-quarter fiscal 2017 results on Apr 6, 2017. The big question facing investors is, whether this leading alcohol company will be able to maintain its positive earnings streak in the to-be-reported quarter.
In fact, its earnings have outperformed the Zacks Consensus Estimate by an average of 6.7% in the trailing four quarters. Let’s see how things are shaping up for this announcement.
The Zacks Consensus Estimate for the fiscal fourth quarter has increased by a penny, over the last 30 days. However, the same has been stable for fiscal 2017 in the said time period. The current Zacks Consensus Estimate of $1.37 per share for the fiscal fourth quarter reflects year-over-year growth of 14.9%. Further, analysts polled by Zacks expect revenues of $1.59 billion, which is 2.8% higher than the year-ago quarter.
Constellation Brands Inc Price and Consensus
Constellation Brands Inc Price and Consensus | Constellation Brands Inc Quote
What Does the Zacks Model Unveil?
Our proven model does not conclusively show that Constellation Brands is likely to beat earnings estimates this quarter. This is because a stock needs to have both a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) and a positive Earnings ESP for this to happen. You may uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Constellation Brands’ Earnings ESP is 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at $1.37. Although the company’s Zacks Rank #3 increases the predictive power of ESP, we need a positive Earnings ESP in order to be confident about an earnings surprise.
Note that we caution against stocks with Zacks Ranks #4 or 5 (Sell rated) going into an earnings announcement, especially when the company is seeing a negative estimate revision.
Factors Influencing this Quarter
Shares of Constellation Brands have gained 8.3% in the past one year, outperforming the Zacks categorized Beverages – Alcoholic industry’s decrease of 0.3%. This is mainly due to its superb earnings surprise history.
The company’s focus on brand building, strength in its beer business and efforts to include new products in its wine and spirits portfolio are the key growth drivers. Further, it has been gaining from effective integration and growth of recently acquired brands, higher margins, solid overall depletion trends and strong consumer demand.
In fact, these factors assisted the company to post its ninth and fifth straight earnings and sales beat, respectively, in the last reported quarter. Further, the company’s raised fiscal 2017 earnings outlook inspires optimism. Management envisions adjusted earnings in the range of $6.55–$6.65 per share compared with $6.30–$6.45, projected earlier.
While these factors make us optimistic about Constellation Brands’ upcoming results, we prefer to remain cautious, given the intense competition in the industry, and the risk of increasing taxes.
Stocks Poised to Beat Earnings Estimates
Here are some companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:
Pinnacle Foods Inc. is expected to report earnings on Apr 27. It has an Earnings ESP of +2.17% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Newell Brands Inc. (NWL - Free Report) is expected to release earnings on May 5. It has an Earnings ESP of +13.79 and a Zacks Rank #3.
Yum China Holdings, Inc. (YUMC - Free Report) is expected to release earnings on Apr 5. It has an Earnings ESP of +2.86% and a Zacks Rank #3.
The Best Place to Start Your Stock Search
Today, you are invited to download the full list of 220 Zacks Rank #1 ""Strong Buy"" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 ""Strong Sells"" and other private research. See these stocks free >>