Constellation Brands (STZ) Q3 2019 Earnings Prep

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Constellation Brands, Inc. (NYSE:STZ) is scheduled to report Q3 earnings results on January 8, 2020. The earnings conference to follow the report is planned for 10:30 am EST.

STZ is expected to report earnings of $1.84/share on revenue of $1.95 billion. The consensus earnings per share (EPS) of $1.84/share is based on a poll of 18 analysts and represents a decline of -22.4% over the same quarter last year when the company reported earnings of $2.37/share.

The revenue forecast of $1.95 billion based on a poll of 14 analysts implies a year-over-year (YoY) decline of -1.2%. Last year the company reported $1.973 billion in revenue for the quarter.

Expected to report EPS decline of -$0.53/share for Q3, 2019
Metric Expected Prior Year YoY Change
Revenue $1,949.91 $1,972.60 -1.2%
EPS $1.84 $2.37 -22.4%

Earnings Call Trends

Historically, management has exceeded analyst expectations 7 out of the last 8 tracked quarters, and missed expectations 1 quarter.

What are your expectations from Constellation Brands for earnings this quarter? Let us know in the comments!

Analyst Expected vs. Reported EPS
Quarter Expected Reported Surprise Result
Q2, 2020 $2.60 $2.72 4.6% Beat
Q1, 2020 $2.06 $2.21 7.4% Beat
Q4, 2019 $1.72 $1.84 7.0% Beat
Q3, 2019 $2.06 $2.37 14.8% Beat
Q2, 2019 $2.61 $2.87 10.0% Beat
Q1, 2019 $2.43 $2.20 -9.5% Missed
Q4, 2018 $1.74 $1.90 9.2% Beat
Q3, 2018 $1.88 $2 6.4% Beat

In the following table, we summarize the company’s stock price movements after earnings releases. The “Price Day Prior” column shows the closing stock price on the day before the earnings report, and the “Price Next Day” column shows the stock price at the end of the trading day after the earnings report.

Stock Price Performance After Earnings
Report Date Price Day Prior Price Next Day Change % Result
2019-10-03 $206.79 $193.74 -6.3% Decline
2019-06-28 $188.21 $196.94 4.6% Increase
2019-04-04 $179.69 $193.30 7.6% Increase
2019-01-09 $172.34 $159.93 -7.2% Decline

After the last earnings report for the period ending August 31, 2019, the stock price reacted by falling by -6.3%.

Fundamentals And Technical Analysis

Constellation Brands is currently trading at $190.40/share, up 0.5% for the day. The company is trading at approximately 88.8% of its 52-week high of $214.48/share. The company’s stock price is down -1.7% since the last earnings report and up 0.3% over the previous week. The company’s 14 Day Relative Price Index (RSI) of 61.09 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.

The current share price implies a price-to-earnings (P/E) multiple of 44.8x and a forward P/E multiple of 21.9x.

Constellation Brands’s current share price also implies a price-to-book (P/B) multiple of 3.2x. The following table summarizes some other key fundamental ratios:

Data as of January 6, 2020
Metric Value
Last Fiscal Period FY2020.Q2
Period End Date August 31, 2019
Stock Price (Current) $190.40
P/E Ratio 44.8x
P/E Ratio (Fwd) 21.9x
PEG Ratio 3.4
Total Debt to Capital (%) 27.1%
Levered Free Cash Flow $1.456 billion
Enterprise Value / EBITDA 16.7x

Source: Finbox

Company Profile: Constellation Brands, Inc.

Constellation Brands, Inc. is a large-cap stock with a market capitalization of $36.355 billion and a total enterprise value of $50.123 billion. The company operates in the Consumer Staples sector and the Beverages industry.

Constellation Brands, together with its subsidiaries, produces, imports, and markets beer, wine, and spirits in the United States, Canada, Mexico, New Zealand, and Italy. It provides beer primarily under the Corona Extra, Corona Light, Corona Premier, Corona Familiar Modelo Especial, Modelo Negra, Modelo Chelada, Pacifico, and Victoria brands, as well as Funky Buddha, Four Corners, and Ballast Point brands. The company offers wine under the 7 Moons, Black Box, Clos du Bois, Franciscan Estate, Kim Crawford, Mark West, Meiomi, Mount Veeder, Nobilo, Ravage, Robert Mondavi, Ruffino, Schrader, Simi, The Dreaming Tree, Charles Smith, Prisoner; and sprits under the Casa Noble, High West, SVEDKA Vodka, Casa Noble Tequila, and High West Whiskey brands.

It provides its products to wholesale distributors, retailers, on-premise locations, and state alcohol beverage control agencies. The company was founded in 1945 and is headquartered in Victor, New York.

 

Expertise: financial modeling, mergers & acquisitions. Andy is also a founder at finbox.io, where he’s focused on building tools that make it faster and easier for investors to do investment research. Andy’s background is in investment banking where he led the analysis on over 50 board advisory engagements involving mergers and acquisitions, fairness opinions and solvency opinions. Some of his board advisory highlights: - Sears Holdings Corp.’s $620 mm spin-off via rights offering of Sears Outlet, Hometown Stores and Sears Hardware Stores. - Cerberus Capital Management’s $3.3 bn acquisition of SUPERVALU Inc.’s New Albertsons, Inc. assets. Andy can be reached at andy@finbox.io or at +1 (516) 778-6257.

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