What To Expect From Constellation Brands’s (STZ) Q2 Earnings

Beer, wine, and spirits company Constellation Brands (NYSE:STZ) will be reporting earnings this Tuesday after the bell. Here’s what to expect.

Constellation Brands beat analysts’ revenue expectations last quarter, reporting revenues of $1.92 billion, down 11.3% year on year. It was a mixed quarter for the company, with an impressive beat of analysts’ organic revenue estimates but full-year EPS guidance missing analysts’ expectations.

Is Constellation Brands a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, the market is expecting Constellation Brands’s revenue to decline 4.7% year on year, in line with the 5.5% decrease it recorded in the same quarter last year.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Constellation Brands has missed Wall Street’s revenue estimates multiple times over the last two years.

Looking at Constellation Brands’s peers in the consumer staples segment, only McCormick has reported results so far. It exceeded analysts’ revenue estimates, delivering year-on-year sales growth of 16.7%. The stock traded up 7.3% on the results.

There has been positive sentiment among investors in the consumer staples segment, with share prices up 5.6% on average over the last month. Constellation Brands is up 7.3% during the same time and is heading into earnings with an average analyst price target of $176.09 (compared to the current share price of $145.70).

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