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Constellation Brands (STZ) Q3 Earnings Beat, Revenues Miss

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Constellation Brands Inc. (STZ - Free Report) , a leading international producer and marketer of beverage alcohol brands, released third-quarter fiscal 2018 results, wherein adjusted earnings of $2.00 per share surpassed the Zacks Consensus Estimate of $1.87. Moreover, the bottom line rose 2% from the year-ago quarter.

Backed by solid growth at its beer business, Constellation Brands raised its fiscal 2018 adjusted earnings forecast to $8.40-$8.50 per share from the previous guidance of $8.25-$8.40. Also, the company raised its GAAP earnings estimate to $8.50-$8.60 per share, compared with $7.90-$8.05 anticipated earlier.

Constellation Brands Inc Price, Consensus and EPS Surprise

Constellation Brands Inc Price, Consensus and EPS Surprise | Constellation Brands Inc Quote

Earnings Estimate Revision: The Zacks Consensus Estimate for fiscal 2018 has remained stable in the last 30 days. However, Constellation Brands’ performance in the trailing four quarters (excluding the quarter under review) gives a positive picture. The company has outperformed the Zacks Consensus Estimate by an average of 13.6% in the trailing four quarters.

Revenues: Constellation Brands generated net sales of $1,799.1 million that dipped 0.6% year over year and also came below the Zacks Consensus Estimate of $1,863 million.

The company reiterated its sales targets for fiscal 2018. It continues to anticipate beer business sales to grow 9-11% in fiscal 2018, while sales for the wine and spirits business is expected to decline 4-6%. These estimates include the expected impact from the divestiture of the Canadian wine business and the benefits from High West, Charles Smith and Prisoner acquisitions.

Zacks Rank: Currently, Constellation Brands carries a Zacks Rank #2 (Buy), which is subject to change following the earnings announcement. You can see the the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Stock Movement: Constellation Brands’ shares are down 2.2% in the pre-market trading hours.

Check back later for our full write up on Constellation Brands’ earnings report!

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