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Beer Business to Aid Constellation Brands (STZ) in Q4 Earnings
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Constellation Brands, Inc. (STZ - Free Report) is scheduled to release fourth-quarter fiscal 2024 results on Apr 11, 2024. The alcoholic beverage bigwig is expected to have recorded top and bottom-line growth in the to-be-reported quarter.
The Zacks Consensus Estimate for the company’s fiscal fourth-quarter earnings is pegged at $2.10 per share, indicating 6.1% growth from the year-ago quarter’s reported figure. The consensus mark has moved down by a penny in the past 30 days. The consensus mark for revenues is pegged at $2.1 billion, suggesting a 5.3% increase from the prior-year quarter’s reported figure.
In the last reported quarter, the alcohol behemoth delivered an earnings surprise of 5.3%. Its bottom line beat estimates by 6%, on average, over the trailing four quarters.
Constellation Brands has been witnessing momentum due to strength in its beer portfolio, with continued robust performances of Modelo Especial and Corona Extra and newer brands — Pacifico and the Modelo Chelada. The company’s premiumization strategy has been playing out well, as evidenced by the accelerated growth of Power Brands.
Constellation Brands’ fourth-quarter fiscal 2024 performance is expected to have gained from continued growth in the beer business and the 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 flavor 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 the 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, has been a key growth driver.
The Zacks Consensus Estimate for fourth-quarter sales is pegged at $1,656 million for the Beer business and $447 million for the wine & spirits business.
However, Constellations Brands’ margins have been witnessing the impacts of ongoing inflation. As part of this, the company has been recording higher packaging and raw material costs, which are likely to have persisted in the fiscal fourth quarter. Also, increased depreciation and operating costs from brewery capacity expansions have been acting as deterrents. Higher overhead costs related to its brewery expansion and increased logistics costs pertaining to higher shipment volumes are also likely to have weighed on margins.
Zacks Model
Our proven model 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 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 +0.69%.
Other Stocks With Favorable Combination
Here are some other companies that you may want to consider, as our model shows that these, too, have the right combination of elements to post an earnings beat this time around:
Celsius (CELH - Free Report) currently has an Earnings ESP of +5.00% and a Zacks Rank of 2. The company is likely to register top and bottom-line growth when it reports first-quarter 2024 results. The Zacks Consensus Estimate for CELH’s quarterly earnings has been unchanged in the past 30 days at 20 cents per share. The consensus mark indicates 53.9% growth from the year-ago quarter’s reported number. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Celsius’ quarterly revenues is pegged at $390.2 million, which suggests growth of 50.1% from the figure reported in the prior-year quarter. CELH delivered an earnings beat of 67.4%, on average, in the trailing four quarters.
Altria Group (MO - Free Report) currently has an Earnings ESP of +1.95% and a Zacks Rank of 3. The company is likely to register declines in the top and bottom lines when it reports first-quarter 2024 results. The Zacks Consensus Estimate for MO’s quarterly earnings has moved down by a penny in the last 30 days to $1.15 per share. The consensus estimate indicates a 2.5% earnings decline from the year-ago quarter's reported number.
The Zacks Consensus Estimate for Altria’s quarterly revenues is pegged at $4.7 billion, suggesting a decline of 0.6% from the figure reported in the prior-year quarter. MO has delivered a negative earnings surprise of 0.2%, on average, in the trailing four quarters.
Hershey (HSY - Free Report) currently has an Earnings ESP of +6.20% and a Zacks Rank of 3. The company is likely to register increases in the top line when it reports first-quarter 2024 results. The Zacks Consensus Estimate for quarterly revenues is pegged at $3.1 billion, which suggests a rise of 4.3% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for quarterly earnings has been unchanged at $2.72 per share in the past 30 days. However, the consensus mark for HSY’s earnings indicates a decline of 8.1% from the year-ago quarter’s reported number. HSY has delivered an earnings surprise of 6.5%, on average, in the trailing four quarters.
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Beer Business to Aid Constellation Brands (STZ) in Q4 Earnings
Constellation Brands, Inc. (STZ - Free Report) is scheduled to release fourth-quarter fiscal 2024 results on Apr 11, 2024. The alcoholic beverage bigwig is expected to have recorded top and bottom-line growth in the to-be-reported quarter.
The Zacks Consensus Estimate for the company’s fiscal fourth-quarter earnings is pegged at $2.10 per share, indicating 6.1% growth from the year-ago quarter’s reported figure. The consensus mark has moved down by a penny in the past 30 days. The consensus mark for revenues is pegged at $2.1 billion, suggesting a 5.3% increase from the prior-year quarter’s reported figure.
In the last reported quarter, the alcohol behemoth delivered an earnings surprise of 5.3%. Its bottom line beat estimates by 6%, 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 due to strength in its beer portfolio, with continued robust performances of Modelo Especial and Corona Extra and newer brands — Pacifico and the Modelo Chelada. The company’s premiumization strategy has been playing out well, as evidenced by the accelerated growth of Power Brands.
Constellation Brands’ fourth-quarter fiscal 2024 performance is expected to have gained from continued growth in the beer business and the 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 flavor 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 the 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, has been a key growth driver.
The Zacks Consensus Estimate for fourth-quarter sales is pegged at $1,656 million for the Beer business and $447 million for the wine & spirits business.
However, Constellations Brands’ margins have been witnessing the impacts of ongoing inflation. As part of this, the company has been recording higher packaging and raw material costs, which are likely to have persisted in the fiscal fourth quarter. Also, increased depreciation and operating costs from brewery capacity expansions have been acting as deterrents. Higher overhead costs related to its brewery expansion and increased logistics costs pertaining to higher shipment volumes are also likely to have weighed on margins.
Zacks Model
Our proven model 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 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 +0.69%.
Other Stocks With Favorable Combination
Here are some other companies that you may want to consider, as our model shows that these, too, have the right combination of elements to post an earnings beat this time around:
Celsius (CELH - Free Report) currently has an Earnings ESP of +5.00% and a Zacks Rank of 2. The company is likely to register top and bottom-line growth when it reports first-quarter 2024 results. The Zacks Consensus Estimate for CELH’s quarterly earnings has been unchanged in the past 30 days at 20 cents per share. The consensus mark indicates 53.9% growth from the year-ago quarter’s reported number. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Celsius’ quarterly revenues is pegged at $390.2 million, which suggests growth of 50.1% from the figure reported in the prior-year quarter. CELH delivered an earnings beat of 67.4%, on average, in the trailing four quarters.
Altria Group (MO - Free Report) currently has an Earnings ESP of +1.95% and a Zacks Rank of 3. The company is likely to register declines in the top and bottom lines when it reports first-quarter 2024 results. The Zacks Consensus Estimate for MO’s quarterly earnings has moved down by a penny in the last 30 days to $1.15 per share. The consensus estimate indicates a 2.5% earnings decline from the year-ago quarter's reported number.
The Zacks Consensus Estimate for Altria’s quarterly revenues is pegged at $4.7 billion, suggesting a decline of 0.6% from the figure reported in the prior-year quarter. MO has delivered a negative earnings surprise of 0.2%, on average, in the trailing four quarters.
Hershey (HSY - Free Report) currently has an Earnings ESP of +6.20% and a Zacks Rank of 3. The company is likely to register increases in the top line when it reports first-quarter 2024 results. The Zacks Consensus Estimate for quarterly revenues is pegged at $3.1 billion, which suggests a rise of 4.3% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for quarterly earnings has been unchanged at $2.72 per share in the past 30 days. However, the consensus mark for HSY’s earnings indicates a decline of 8.1% from the year-ago quarter’s reported number. HSY has delivered an earnings surprise of 6.5%, on average, in the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.