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Why Constellation Brands (STZ) is Poised for Q1 Earnings Beat
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Constellation Brands, Inc. (STZ - Free Report) is scheduled to release first-quarter fiscal 2024 results on Jun 30, 2023. The alcoholic beverage bigwig is expected to deliver top and bottom-line growth in the to-be-reported quarter.
The Zacks Consensus Estimate for the company’s fiscal first-quarter earnings is pegged at $2.82 per share, indicating 6% growth from the year-ago quarter’s reported figure. The consensus mark has moved up 0.7% in the past 30 days. The consensus mark for revenues is pegged at $2.48 billion, suggesting a 4.9% increase from the prior-year quarter’s reported figure.
In the last reported quarter, the alcohol behemoth delivered an earnings surprise of 6.5%. Its bottom line beat estimates by 5.2%, on average, over the trailing four quarters.
Constellation Brands has been witnessing momentum, owing to strength in its beer portfolio, with the continued robust performance of Modelo Especial and Corona Extra, and newer brands, Pacifico and the Modelo Chelada. The company’s premiumization strategy has been playing out well, evident from accelerated growth of the Power Brands.
Constellation’s first-quarter fiscal 2024 performance is expected to have gained from continued growth in the beer business and robust consumer demand for its portfolio of premium, high-end products. The beer segment has also been witnessing gains from premiumization, driven by growth in traditional beer, as well as the flavors category, including seltzers, flavored beer, RTD spirits and flavored malt beverages. These are likely to have aided the top line in the to-be-reported quarter.
STZ’s wine & spirits business has been benefiting from its premiumization strategy focused on making investments to fuel growth of its Power Brands through innovation, capitalizing on priority, consumer trends and product introductions. Strength in high-end Power Brands, including The Prisoner Brand Family, Kim Crawford and Meiomi, have been key growth drivers.
However, higher COGS, and marketing and SG&A expenses have been affecting the company’s earnings. Higher raw material, packaging and logistic costs due to the persistent inflationary pressures, higher operating costs from brewery expansions and elevated marketing expenses from the shift in the timing of sports advertisement investment have been weighing on margins.
Zacks Model
Our proven model conclusively predicts an earnings beat for Constellation Brands this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds 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 +0.20%.
Other Stocks With Favorable Combination
Here are some other companies that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season:
Kraft Heinz Company (KHC - Free Report) currently has an Earnings ESP of +2.84% and a Zacks Rank of 2. The company is likely to register top and bottom-line growth when it reports second-quarter 2023 results. The Zacks Consensus Estimate for KHC’s quarterly earnings has been unchanged in the past 30 days at 75 cents per share. The consensus mark indicates 7.1% growth from the year-ago quarter’s reported number.
Kraft Heinz’s top line is expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $6.84 billion, which suggests growth of 4.3% from the figure reported in the prior-year quarter. KHC has delivered an earnings beat of 10.7%, on average, in the trailing four quarters.
Kimberly-Clark (KMB - Free Report) currently has an Earnings ESP of +6.73% and a Zacks Rank of 3. The company is likely to register increases in the top and bottom lines when it reports second-quarter 2023 results. The Zacks Consensus Estimate for quarterly earnings was unchanged in the last 30 days at $1.39 per share. The consensus estimate indicates 3.7% earnings growth from the year-ago quarter's reported number.
Kimberly-Clark’s top line is expected to have risen year over year. The Zacks Consensus Estimate for KMB’s quarterly revenues is pegged at $5.08 billion, suggesting growth of 0.3% from the figure reported in the prior-year quarter. KMB has delivered an earnings surprise of 5.1%, on average, in the trailing four quarters.
Fomento Economico Mexicano (FMX - Free Report) currently has an Earnings ESP of +39.62% and a Zacks Rank of 3. The company is likely to register increases in the top line when it reports second-quarter 2023 results. The Zacks Consensus Estimate for quarterly revenues is pegged at $10.2 billion, which suggests a rise of 22% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for quarterly earnings has moved up 3.6% to 87 cents per share in the past 30 days. The consensus mark for FMX’s earnings indicates a decline of 20.9% from the year-ago quarter’s reported number. FMX has delivered a negative earnings surprise of 1.3%, on average, in the trailing four quarters.
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Why Constellation Brands (STZ) is Poised for Q1 Earnings Beat
Constellation Brands, Inc. (STZ - Free Report) is scheduled to release first-quarter fiscal 2024 results on Jun 30, 2023. The alcoholic beverage bigwig is expected to deliver top and bottom-line growth in the to-be-reported quarter.
The Zacks Consensus Estimate for the company’s fiscal first-quarter earnings is pegged at $2.82 per share, indicating 6% growth from the year-ago quarter’s reported figure. The consensus mark has moved up 0.7% in the past 30 days. The consensus mark for revenues is pegged at $2.48 billion, suggesting a 4.9% increase from the prior-year quarter’s reported figure.
In the last reported quarter, the alcohol behemoth delivered an earnings surprise of 6.5%. Its bottom line beat estimates by 5.2%, 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 momentum, owing to strength in its beer portfolio, with the continued robust performance of Modelo Especial and Corona Extra, and newer brands, Pacifico and the Modelo Chelada. The company’s premiumization strategy has been playing out well, evident from accelerated growth of the Power Brands.
Constellation’s first-quarter fiscal 2024 performance is expected to have gained from continued growth in the beer business and robust consumer demand for its portfolio of premium, high-end products. The beer segment has also been witnessing gains from premiumization, driven by growth in traditional beer, as well as the flavors category, including seltzers, flavored beer, RTD spirits and flavored malt beverages. These are likely to have aided the top line in the to-be-reported quarter.
STZ’s wine & spirits business has been benefiting from its premiumization strategy focused on making investments to fuel growth of its Power Brands through innovation, capitalizing on priority, consumer trends and product introductions. Strength in high-end Power Brands, including The Prisoner Brand Family, Kim Crawford and Meiomi, have been key growth drivers.
However, higher COGS, and marketing and SG&A expenses have been affecting the company’s earnings. Higher raw material, packaging and logistic costs due to the persistent inflationary pressures, higher operating costs from brewery expansions and elevated marketing expenses from the shift in the timing of sports advertisement investment have been weighing on margins.
Zacks Model
Our proven model conclusively predicts an earnings beat for Constellation Brands this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds 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 +0.20%.
Other Stocks With Favorable Combination
Here are some other companies that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season:
Kraft Heinz Company (KHC - Free Report) currently has an Earnings ESP of +2.84% and a Zacks Rank of 2. The company is likely to register top and bottom-line growth when it reports second-quarter 2023 results. The Zacks Consensus Estimate for KHC’s quarterly earnings has been unchanged in the past 30 days at 75 cents per share. The consensus mark indicates 7.1% growth from the year-ago quarter’s reported number.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Kraft Heinz’s top line is expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $6.84 billion, which suggests growth of 4.3% from the figure reported in the prior-year quarter. KHC has delivered an earnings beat of 10.7%, on average, in the trailing four quarters.
Kimberly-Clark (KMB - Free Report) currently has an Earnings ESP of +6.73% and a Zacks Rank of 3. The company is likely to register increases in the top and bottom lines when it reports second-quarter 2023 results. The Zacks Consensus Estimate for quarterly earnings was unchanged in the last 30 days at $1.39 per share. The consensus estimate indicates 3.7% earnings growth from the year-ago quarter's reported number.
Kimberly-Clark’s top line is expected to have risen year over year. The Zacks Consensus Estimate for KMB’s quarterly revenues is pegged at $5.08 billion, suggesting growth of 0.3% from the figure reported in the prior-year quarter. KMB has delivered an earnings surprise of 5.1%, on average, in the trailing four quarters.
Fomento Economico Mexicano (FMX - Free Report) currently has an Earnings ESP of +39.62% and a Zacks Rank of 3. The company is likely to register increases in the top line when it reports second-quarter 2023 results. The Zacks Consensus Estimate for quarterly revenues is pegged at $10.2 billion, which suggests a rise of 22% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for quarterly earnings has moved up 3.6% to 87 cents per share in the past 30 days. The consensus mark for FMX’s earnings indicates a decline of 20.9% from the year-ago quarter’s reported number. FMX has delivered a negative earnings surprise of 1.3%, on average, in the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.