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Here's How Constellation Brands (STZ) Looks Before Q4 Earnings
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Constellation Brands, Inc. (STZ - Free Report) is scheduled to release fourth-quarter fiscal 2021 results on Apr 8, 2021. This alcoholic beverage bigwig is likely to deliver top- and bottom-line declines in the to-be-reported quarter.
The Zacks Consensus Estimate for the company’s fiscal fourth-quarter earnings stands at $1.44, indicating a 30.1% decline from the year-ago quarter’s reported figure. Further, the consensus mark has been unchanged in the past 30 days. The consensus mark for revenues is pegged at $1.84 billion, suggesting a 3.1% decline from the prior-year quarter’s reported figure.
In the last reported quarter, the alcohol behemoth delivered an earnings surprise of 28.2%. Moreover, its bottom line beat estimates by 19.7%, on average, over the trailing four quarters.
Constellation Brands has been gaining from the strength of its brands and endeavors to adapt to the changes in the market, particularly e-commerce investments, and growth of hard seltzer. The endeavors have helped maintain a robust earnings performance in the past several quarters. Despite the impacts of the coronavirus outbreak, the company’s results for the past few quarters have been reflecting strong shipments across both segments as well as robust depletion growth at its beer business.
Furthermore, depletions at the beer business have been benefiting from improved inventory levels and robust off-premise channel sales, which more than offset the 35% decline in the on-premise channel in the last reported quarter due to the coronavirus outbreak. Continuation of these trends in the off-premise business is expected to have aided depletions and the top line in the fiscal fourth quarter. Additionally, the beer business depletion is expected to have benefited from strength in the Modelo and Corona Brand Families.
Moreover, the company’s wine & spirits premiumization strategy has been yielding results, as evident from the recent acceleration in depletions for the power brands, namely Kim Crawford, Meiomi and The Prisoner Brand Family.
Additionally, the company has been capitalizing on the opportunities in the fast-growing hard seltzer category. The Corona Hard Seltzer, launched in early 2020, has achieved the number four position in the category and is currently the second-fastest moving hard seltzer. Moreover, it continues to maintain strong incrementality levels at nearly 90%. These initiatives and product launches will strengthen Constellation Brands’ competitive position in the hard seltzer category, broaden its distribution reach and enhance market share in the high-end U.S. beer market. This is likely to get reflected in the company’s top and bottom-line results for the fiscal fourth quarter.
However, the impacts of adjustments related to loss from the Canopy Growth deal and other activities are likely to have been headwinds. In the last reported quarter, Canopy anticipated recording an estimated pre-tax loss of C$350-C$400 million in its third and fourth-quarter fiscal 2021 results. As a result, Constellation Brands expects to record a proportional share of the previously mentioned pre-tax loss of C$130-C$155 million in fourth-quarter fiscal 2021 and first-quarter fiscal 2022.
Zacks Model
Our proven model does not conclusively predict an earnings beat for Constellation Brands this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Constellation Brands has a Zacks Rank #2 and an Earnings ESP of 0.00%.
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 deliver an earnings beat:
Altria Group, Inc. (MO - Free Report) currently has an Earnings ESP of +0.14% and a Zacks Rank #3.
Tyson Foods, Inc. (TSN - Free Report) presently has an Earnings ESP of +16.03% and a Zacks Rank #3.
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Here's How Constellation Brands (STZ) Looks Before Q4 Earnings
Constellation Brands, Inc. (STZ - Free Report) is scheduled to release fourth-quarter fiscal 2021 results on Apr 8, 2021. This alcoholic beverage bigwig is likely to deliver top- and bottom-line declines in the to-be-reported quarter.
The Zacks Consensus Estimate for the company’s fiscal fourth-quarter earnings stands at $1.44, indicating a 30.1% decline from the year-ago quarter’s reported figure. Further, the consensus mark has been unchanged in the past 30 days. The consensus mark for revenues is pegged at $1.84 billion, suggesting a 3.1% decline from the prior-year quarter’s reported figure.
In the last reported quarter, the alcohol behemoth delivered an earnings surprise of 28.2%. Moreover, its bottom line beat estimates by 19.7%, on average, over the trailing four quarters.
Constellation Brands Inc Price and EPS Surprise
Constellation Brands Inc price-eps-surprise | Constellation Brands Inc Quote
Key Factors to Note
Constellation Brands has been gaining from the strength of its brands and endeavors to adapt to the changes in the market, particularly e-commerce investments, and growth of hard seltzer. The endeavors have helped maintain a robust earnings performance in the past several quarters. Despite the impacts of the coronavirus outbreak, the company’s results for the past few quarters have been reflecting strong shipments across both segments as well as robust depletion growth at its beer business.
Furthermore, depletions at the beer business have been benefiting from improved inventory levels and robust off-premise channel sales, which more than offset the 35% decline in the on-premise channel in the last reported quarter due to the coronavirus outbreak. Continuation of these trends in the off-premise business is expected to have aided depletions and the top line in the fiscal fourth quarter. Additionally, the beer business depletion is expected to have benefited from strength in the Modelo and Corona Brand Families.
Moreover, the company’s wine & spirits premiumization strategy has been yielding results, as evident from the recent acceleration in depletions for the power brands, namely Kim Crawford, Meiomi and The Prisoner Brand Family.
Additionally, the company has been capitalizing on the opportunities in the fast-growing hard seltzer category. The Corona Hard Seltzer, launched in early 2020, has achieved the number four position in the category and is currently the second-fastest moving hard seltzer. Moreover, it continues to maintain strong incrementality levels at nearly 90%. These initiatives and product launches will strengthen Constellation Brands’ competitive position in the hard seltzer category, broaden its distribution reach and enhance market share in the high-end U.S. beer market. This is likely to get reflected in the company’s top and bottom-line results for the fiscal fourth quarter.
However, the impacts of adjustments related to loss from the Canopy Growth deal and other activities are likely to have been headwinds. In the last reported quarter, Canopy anticipated recording an estimated pre-tax loss of C$350-C$400 million in its third and fourth-quarter fiscal 2021 results. As a result, Constellation Brands expects to record a proportional share of the previously mentioned pre-tax loss of C$130-C$155 million in fourth-quarter fiscal 2021 and first-quarter fiscal 2022.
Zacks Model
Our proven model does not conclusively predict an earnings beat for Constellation Brands this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Constellation Brands has a Zacks Rank #2 and an Earnings ESP of 0.00%.
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 deliver an earnings beat:
The Boston Beer Company, Inc. (SAM - Free Report) has an Earnings ESP of +9.58% and a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Altria Group, Inc. (MO - Free Report) currently has an Earnings ESP of +0.14% and a Zacks Rank #3.
Tyson Foods, Inc. (TSN - Free Report) presently has an Earnings ESP of +16.03% and a Zacks Rank #3.
Bitcoin, Like the Internet Itself, Could Change Everything
Blockchain and cryptocurrency has sparked one of the most exciting discussion topics of a generation. Some call it the “Internet of Money” and predict it could change the way money works forever. If true, it could do to banks what Netflix did to Blockbuster and Amazon did to Sears. Experts agree we’re still in the early stages of this technology, and as it grows, it will create several investing opportunities.
Zacks’ has just revealed 3 companies that can help investors capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly.
See 3 crypto-related stocks now >>