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Things to Note Ahead of Constellation Brands' (STZ) Q3 Earnings
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Constellation Brands, Inc. (STZ - Free Report) is scheduled to release third-quarter fiscal 2022 results on Jan 6, 2022. The alcoholic beverage bigwig is expected to deliver top and bottom-line declines in the to-be-reported quarter.
The Zacks Consensus Estimate for the company’s fiscal third-quarter earnings is pegged at $2.82, indicating an 8.7% decline from the year-ago quarter’s reported figure. The consensus mark has been unchanged in the past 30 days. The consensus mark for revenues is pegged at $2.28 billion, suggesting a 6.4% decline from the prior-year quarter’s reported figure.
In the last reported quarter, the alcohol behemoth delivered a negative earnings surprise of 14.4%. However, its bottom line beat estimates by 8.8%, on average, over the trailing four quarters.
Constellation Brands has been witnessing softness in its wine & spirits business for a while now. The bulk sales of smoke-tainted wine, which is margin-dilutive, higher SG&A and marketing expenses, and increased cost of goods sold (COGS) have been hurting the wine and spirits segment’s operating margin. Continued soft trends in the wine & spirits business are expected to have weighed on the fiscal third-quarter performance.
Constellation Brands is expected to have witnessed headwinds from higher COGS, marketing investments and SG&A expenses, which have been hurting margins. Increased COGS primarily has been stemming from obsolescence costs associated with the excess inventory of hard seltzers due to a slowdown in the overall category in the United States. Driven by the decline in margins, Constellation Brands is anticipated to have witnessed soft comparable earnings per share in the to-be-reported quarter.
The impacts of adjustments related to the loss from the Canopy Growth deal and other activities are likely to have been headwinds. The company is expected to have witnessed certain impacts from the ongoing supply-chain constraints, leading to product shortages and rising freight costs.
However, Constellation Brands has been resilient, driven by the continued strength in the beer business, and robust shipment and depletion volume growth, which have been boons for its strong quarterly performance. Constellation Brands is expected to have retained its strong performance in the beer business in the fiscal third quarter, driven by robust consumer demand for its iconic brands.
The company’s wine & spirits premiumization strategy has been playing out well, as evident from accelerated growth rates for Power Brands. The high-end Power Brands, including Kim Crawford, Meiomi and The Prisoner Brand Family, have been witnessing double-digit growth. This along with gains from consumer-driven innovation initiatives are anticipated to have aided the segment’s organic sales in the fiscal third quarter.
Zacks Model
Our proven model conclusively predicts 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 #3 and an Earnings ESP of +2.13%.
Other Stocks Poised to Beat Earnings Estimates
Here are some other companies you may want to consider, as our model shows that these too have the right combination of elements to deliver an earnings beat:
Boot Barn (BOOT - Free Report) currently has an Earnings ESP of +0.91% and it sports a Zacks Rank of 1. The company is expected to register top and bottom-line growth when it reports fourth-quarter 2021 numbers. The Zacks Consensus Estimate for BOOT’s quarterly revenues is pegged at $461.5 million, which suggests growth of 52.6% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for Boot Barn’s quarterly earnings has been unchanged in the past 30 days to $1.98 per share, suggesting 98% growth from the year-ago reported number. BOOT has delivered an earnings beat of 35.3%, on average, in the trailing four quarters.
Archer Daniels Midland (ADM - Free Report) currently has an Earnings ESP of +5.05% and a Zacks Rank #3. ADM is likely to register top and bottom-line growth when it reports fourth-quarter 2021 numbers. The Zacks Consensus Estimate for its quarterly revenues is pegged at $20.2 billion, which suggests growth of 12.3% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Archer Daniels’ quarterly earnings has moved up 3.4% in the past 30 days to $1.23 per share, suggesting growth of 1.7% from the year-ago quarter’s reported number. ADM has delivered an earnings beat of 23.4%, on average, in the trailing four quarters.
Starbucks (SBUX - Free Report) currently has an Earnings ESP of +0.57% and a Zacks Rank #3. SBUX is anticipated to register top and bottom-line growth when it reports fourth-quarter 2021 results. The Zacks Consensus Estimate for quarterly revenues is pegged at $7.99 billion, indicating an improvement of 18.4% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Starbucks’ bottom line has moved up by a penny in the past 30 days to 80 cents per share. The consensus estimate suggests growth of 31.2% from the year-ago quarter’s reported figure. SBUX has delivered an earnings beat of 15.3%, on average, in the trailing four quarters.
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Things to Note Ahead of Constellation Brands' (STZ) Q3 Earnings
Constellation Brands, Inc. (STZ - Free Report) is scheduled to release third-quarter fiscal 2022 results on Jan 6, 2022. The alcoholic beverage bigwig is expected to deliver top and bottom-line declines in the to-be-reported quarter.
The Zacks Consensus Estimate for the company’s fiscal third-quarter earnings is pegged at $2.82, indicating an 8.7% decline from the year-ago quarter’s reported figure. The consensus mark has been unchanged in the past 30 days. The consensus mark for revenues is pegged at $2.28 billion, suggesting a 6.4% decline from the prior-year quarter’s reported figure.
In the last reported quarter, the alcohol behemoth delivered a negative earnings surprise of 14.4%. However, its bottom line beat estimates by 8.8%, 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 witnessing softness in its wine & spirits business for a while now. The bulk sales of smoke-tainted wine, which is margin-dilutive, higher SG&A and marketing expenses, and increased cost of goods sold (COGS) have been hurting the wine and spirits segment’s operating margin. Continued soft trends in the wine & spirits business are expected to have weighed on the fiscal third-quarter performance.
Constellation Brands is expected to have witnessed headwinds from higher COGS, marketing investments and SG&A expenses, which have been hurting margins. Increased COGS primarily has been stemming from obsolescence costs associated with the excess inventory of hard seltzers due to a slowdown in the overall category in the United States. Driven by the decline in margins, Constellation Brands is anticipated to have witnessed soft comparable earnings per share in the to-be-reported quarter.
The impacts of adjustments related to the loss from the Canopy Growth deal and other activities are likely to have been headwinds. The company is expected to have witnessed certain impacts from the ongoing supply-chain constraints, leading to product shortages and rising freight costs.
However, Constellation Brands has been resilient, driven by the continued strength in the beer business, and robust shipment and depletion volume growth, which have been boons for its strong quarterly performance. Constellation Brands is expected to have retained its strong performance in the beer business in the fiscal third quarter, driven by robust consumer demand for its iconic brands.
The company’s wine & spirits premiumization strategy has been playing out well, as evident from accelerated growth rates for Power Brands. The high-end Power Brands, including Kim Crawford, Meiomi and The Prisoner Brand Family, have been witnessing double-digit growth. This along with gains from consumer-driven innovation initiatives are anticipated to have aided the segment’s organic sales in the fiscal third quarter.
Zacks Model
Our proven model conclusively predicts 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 #3 and an Earnings ESP of +2.13%.
Other Stocks Poised to Beat Earnings Estimates
Here are some other companies you may want to consider, as our model shows that these too have the right combination of elements to deliver an earnings beat:
Boot Barn (BOOT - Free Report) currently has an Earnings ESP of +0.91% and it sports a Zacks Rank of 1. The company is expected to register top and bottom-line growth when it reports fourth-quarter 2021 numbers. The Zacks Consensus Estimate for BOOT’s quarterly revenues is pegged at $461.5 million, which suggests growth of 52.6% from the prior-year quarter’s reported figure.
You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Boot Barn’s quarterly earnings has been unchanged in the past 30 days to $1.98 per share, suggesting 98% growth from the year-ago reported number. BOOT has delivered an earnings beat of 35.3%, on average, in the trailing four quarters.
Archer Daniels Midland (ADM - Free Report) currently has an Earnings ESP of +5.05% and a Zacks Rank #3. ADM is likely to register top and bottom-line growth when it reports fourth-quarter 2021 numbers. The Zacks Consensus Estimate for its quarterly revenues is pegged at $20.2 billion, which suggests growth of 12.3% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Archer Daniels’ quarterly earnings has moved up 3.4% in the past 30 days to $1.23 per share, suggesting growth of 1.7% from the year-ago quarter’s reported number. ADM has delivered an earnings beat of 23.4%, on average, in the trailing four quarters.
Starbucks (SBUX - Free Report) currently has an Earnings ESP of +0.57% and a Zacks Rank #3. SBUX is anticipated to register top and bottom-line growth when it reports fourth-quarter 2021 results. The Zacks Consensus Estimate for quarterly revenues is pegged at $7.99 billion, indicating an improvement of 18.4% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Starbucks’ bottom line has moved up by a penny in the past 30 days to 80 cents per share. The consensus estimate suggests growth of 31.2% from the year-ago quarter’s reported figure. SBUX has delivered an earnings beat of 15.3%, on average, in the trailing four quarters.