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What's in Store for Constellation Brands (STZ) in Q1 Earnings?

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Constellation Brands, Inc. (STZ - Free Report) is scheduled to release first-quarter fiscal 2021 results on Jul 1, 2020. In the last reported quarter, the alcohol behemoth delivered a positive earnings surprise of 27.2%. Moreover, its bottom line beat estimates by 13.6%, on average, over the trailing four quarters.

The Zacks Consensus Estimate for the company’s fiscal first-quarter earnings stands at $1.90, indicating a 14% decline from the year-ago quarter’s reported figure. Further, the consensus mark has moved up 1.6% in the past 30 days. Nonetheless, the consensus mark for revenues is pegged at $1,974 million, suggesting a 5.9% decline from the prior-year quarter’s reported figure.

Constellation Brands Inc Price and EPS Surprise

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 strength in the beer business owing to a rise in shipment volumes and favorable depletion trends. Continued strength in the Modelo and Corona brand families and constant innovation have been driving portfolio depletions and market share gains. Moreover, the company’s wine & spirits premiumization strategy is yielding results, as evident from the recent acceleration in depletions for the power brands, namely Kim Crawford, Meiomi and The Prisoner Brand Family.

Moreover, Constellation Brands’ constant focus on brand building and initiatives to include new products bode well. The company is likely to have benefited from growth in the hard seltzer category as it recently launched the Corona hard seltzer.

However, the evolving coronavirus outbreak in the United States led to the closure of northern and southern borders of the country and hurt market trends, drastically impacting consumers and the marketplace. The company is witnessing a decline in on-premise demand as bars and restaurants remain closed. Nevertheless, the off-premise businesses, such as grocery and convenience stores, are witnessing improved demand trends. These trends in off-premise and on-premise channels are likely to get reflected in the company’s fiscal first-quarter top-line performance.

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 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 +5.96%.

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:

Helen of Troy Limited (HELE - Free Report) has an Earnings ESP of +11.48% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Conagra Brands Inc. (CAG - Free Report) has an Earnings ESP of +2.24% and a Zacks Rank #3.

General Mills, Inc. (GIS - Free Report) currently has an Earnings ESP of +2.10% and a Zacks Rank #3.

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