Two Stocks Heading In Different Directions Following Earnings Reports And The One Hedge Funds Love More

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Constellation Brands, Inc. (NYSE:STZ)’s 2015 second quarter revenues came in at $1.73 billion, up by roughly 8% year-over-year. The alcoholic beverage company also registered a profit of $302.4 million, which translates into earnings of $1.49 per share, up from the $1.08 per share posted a year ago. The company’s management also reiterated its full-year growth expectations of 10% and is expecting 2015 earnings to come in a range between $5.00 and $5.20 per share. The stock has been a solid performer so far this year, surging by more than 35% to a current value of $134.35.
“Our wine and spirits business posted improved margins, strong sales growth for our spirits portfolio and excellent financial results for our Canadian business,” said Rob Sands, Chief Executive Officer of Constellation Brands.

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Michael Lowenstein, the manager of Kensico Capital, is the largest shareholder of Constellation Brands, Inc. (NYSE:STZ)’s stock among the hedge funds that we follow. Kensico reported ownership of 6.64 million shares in its latest 13F filing, down by 2% during the quarter. Dan Loeb and Alan Fournier also reduced their investments in the company, leaving their funds with 1.9 million shares, down by 5%, and 2.36 million shares, down by 16%, respectively; perhaps a decision they will regret. In general, hedge fund sentiment towards Constellation Brands, Inc. (NYSE:STZ) dipped slightly during the second quarter. Although the number of funds invested in the company was still at 62 at the end of June, the value of the aggregate positions decreased slightly to $4.13 billion. Their combined holdings account for 18.3% of the company’s outstanding stock.

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