Spring is finally here, and a new earnings season is getting under way. On Wednesday, Constellation Brands, Inc. (NYSE:STZ) will release its latest quarterly results. The key to making smart investment decisions on stocks reporting earnings is to anticipate how they’ll do before they announce results, leaving you fully prepared to respond quickly to whatever inevitable surprises arise. That way, you’ll be less likely to make an uninformed knee-jerk reaction to news that turns out to be exactly the wrong move.
Constellation Brands, Inc. (NYSE:STZ) has been at the center of the frenzy of consolidation that’s been going on in the beer, wine, and spirits industry recently. Can the company hold its own against increasingly tough competition on a number of fronts? Let’s take an early look at what’s been happening with Constellation Brands, Inc. (NYSE:STZ) over the past quarter and what we’re likely to see in its quarterly report on Wednesday.
Stats on Constellation Brands
|Analyst EPS Estimate||$0.45|
|Change From Year-Ago EPS||(35%)|
|Revenue Estimate||$667 million|
|Change From Year-Ago Revenue||6.1%|
|Earnings Beats in Past 4 Quarters||4|
Can Constellation Brands lift investors’ spirits this quarter?
Analysts have gotten more optimistic about Constellation’s earnings prospects in recent months, as they’ve lifted their estimates both for the just-ended quarter and for the entire 2013 fiscal year. That optimism has definitely shown up in Constellation Brands, Inc. (NYSE:STZ)’s share price, as the stock has risen 35% just since the beginning of the year.
For almost a year now, Constellation has been dealing with the changing prospects of Anheuser-Busch InBev NV (ADR) (NYSE:BUD)‘s attempts to buy Grupo Modelo. To avoid antitrust concerns, Anheuser-Busch had agreed to sell its stake in the Crown Imports joint venture to Constellation Brands, Inc. (NYSE:STZ), giving it complete control of Crown Imports. Moreover, the deal would also have allowed Constellation to import Corona and Modelo Especial.