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Constellation Brands Earnings Up Next

By Seth Jayson – Updated Apr 10, 2017 at 12:59PM

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Checking expectations

Constellation Brands (NYSE: STZ) is expected to report Q1 earnings around July 2. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Constellation Brands's revenues will increase 12.7% and EPS will grow 2.5%.

The average estimate for revenue is $715.6 million. On the bottom line, the average EPS estimate is $0.41.

Revenue details
Last quarter, Constellation Brands booked revenue of $696.0 million. GAAP reported sales were 11% higher than the prior-year quarter's $628.1 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, non-GAAP EPS came in at $0.47. GAAP EPS of $0.44 for Q4 were 14% lower than the prior-year quarter's $0.51 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 37.9%, 130 basis points worse than the prior-year quarter. Operating margin was 20.8%, 80 basis points better than the prior-year quarter. Net margin was 11.7%, 470 basis points worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $4.92 billion. The average EPS estimate is $2.79.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 330 members out of 366 rating the stock outperform, and 36 members rating it underperform. Among 104 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 101 give Constellation Brands a green thumbs-up, and three give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Constellation Brands is outperform, with an average price target of $47.00.

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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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