We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
What's in Store for Constellation Brands (STZ) in Q3 Earnings?
Read MoreHide Full Article
Constellation Brands, Inc. (STZ - Free Report) is scheduled to release third-quarter fiscal 2020 results on Jan 8, 2020. In the last reported quarter, the leading wine company delivered a positive earnings surprise of 4.2%. Moreover, its bottom line beat estimates by 8.7%, on average, over the trailing four quarters.
The Zacks Consensus Estimate for the company’s fiscal third-quarter earnings stands at $1.90, indicating a 19.8% decline from the year-ago quarter’s reported figure. Further, the consensus mark has moved down by a penny in the past 30 days. For third-quarter revenues, the consensus mark is pegged at $1.95 billion, suggesting a 0.9% decrease from the prior-year quarter’s reported figure.
Constellation Brands has been delivering strong performance, evident from its consistent earnings record. Strength in its beer business has been a key growth driver, with higher depletions and shipment volume. Solid portfolio depletions and market share gains, stemming from continued strength in the Modelo and Corona brand families, are likely to have aided the top line in the to be reported quarter.
The company is also poised to gain from the exposure in the cannabis space, with its investment in Canopy Growth. Furthermore, its constant brand-building efforts, acquisitions and innovation are commendable. Its innovation and marketing efforts are well-recognized in the beverage market. Gains from these efforts are likely to get reflected in the company’s performance in third-quarter fiscal 2020.
However, softness in the company’s wine & spirits business has been significantly weighing on these positive factors. Lower shipment volumes and depletions are likely to have hurt the segment’s sales in the fiscal third quarter.
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 odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Although Constellation Brands carries a Zacks Rank #3, its Earnings ESP of -3.07% makes surprise prediction difficult.
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:
Target Corporation (TGT - Free Report) has an Earnings ESP of +0.24%. It presently flaunts a Zacks Rank #1.
The Procter & Gamble Company (PG - Free Report) currently has an Earnings ESP of +0.91% and a Zacks Rank #2.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through Q3 2019, while the S&P 500 gained +39.6%, five of our strategies returned +51.8%, +57.5%, +96.9%, +119.0%, and even +158.9%.
This outperformance has not just been a recent phenomenon. From 2000 – Q3 2019, while the S&P averaged +5.6% per year, our top strategies averaged up to +54.1% per year.
Image: Bigstock
What's in Store for Constellation Brands (STZ) in Q3 Earnings?
Constellation Brands, Inc. (STZ - Free Report) is scheduled to release third-quarter fiscal 2020 results on Jan 8, 2020. In the last reported quarter, the leading wine company delivered a positive earnings surprise of 4.2%. Moreover, its bottom line beat estimates by 8.7%, on average, over the trailing four quarters.
The Zacks Consensus Estimate for the company’s fiscal third-quarter earnings stands at $1.90, indicating a 19.8% decline from the year-ago quarter’s reported figure. Further, the consensus mark has moved down by a penny in the past 30 days. For third-quarter revenues, the consensus mark is pegged at $1.95 billion, suggesting a 0.9% decrease from the prior-year quarter’s reported figure.
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 delivering strong performance, evident from its consistent earnings record. Strength in its beer business has been a key growth driver, with higher depletions and shipment volume. Solid portfolio depletions and market share gains, stemming from continued strength in the Modelo and Corona brand families, are likely to have aided the top line in the to be reported quarter.
The company is also poised to gain from the exposure in the cannabis space, with its investment in Canopy Growth. Furthermore, its constant brand-building efforts, acquisitions and innovation are commendable. Its innovation and marketing efforts are well-recognized in the beverage market. Gains from these efforts are likely to get reflected in the company’s performance in third-quarter fiscal 2020.
However, softness in the company’s wine & spirits business has been significantly weighing on these positive factors. Lower shipment volumes and depletions are likely to have hurt the segment’s sales in the fiscal third quarter.
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 odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Although Constellation Brands carries a Zacks Rank #3, its Earnings ESP of -3.07% makes surprise prediction difficult.
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:
Boot Barn Holdings, Inc (BOOT - Free Report) has an Earnings ESP of +1.47%. It currently sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Target Corporation (TGT - Free Report) has an Earnings ESP of +0.24%. It presently flaunts a Zacks Rank #1.
The Procter & Gamble Company (PG - Free Report) currently has an Earnings ESP of +0.91% and a Zacks Rank #2.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through Q3 2019, while the S&P 500 gained +39.6%, five of our strategies returned +51.8%, +57.5%, +96.9%, +119.0%, and even +158.9%.
This outperformance has not just been a recent phenomenon. From 2000 – Q3 2019, while the S&P averaged +5.6% per year, our top strategies averaged up to +54.1% per year.
See their latest picks free >>