Constellation Brands Inc. (NYSE: STZ) has confirmed that it will release its fiscal Q3 2022 on Thursday, January 6, 2022, before market open.
What to look for
The company has big questions to answer when it releases its results on Thursday, January 6, 2022. Constellation Brands' stock performance trailed the market towards the end of 2021, which was attributed to its growth potential. The company has been struggling with the wines and spirits division issues that have been a drag for the beer maker for years. In its last earnings report, the company reported solid growth in the beer business, and when the company reports its Q3 2022, investors will be keen to see if the company is benefiting from the portfolio of its premier beer brands.
Earnings: Stockearning’s Estimated EPS for the current quarter under review is expected to be around $2.72 per share. The company had an EPS of $2.38 per share in the last quarter, missing estimates by 14.39%. Historical EPS Performance for the past 12 quarters indicates that the company has topped estimates ten times (83%) and missed estimates two times (16%).
Revenue: The beer and wine company is expected to report revenue of $2.28 billion, representing a 6% YoY drop. For the full year, the company is expected to report revenue of $8.64 billion and earnings of between $10.15 and $10.45.
Stock movement: Constellation Brands shares have gained 18.7% since the company released its last quarter earnings. Interestingly the company’s shares have been UP 13 times out of the past 21 quarters. So, the historical price reaction suggests a 61% probability of the share price going UP once the company reports its fiscal Q3 2022 earnings. According to the Stockearning algorithm, the predicted first-day move is 4%, while the predicted move on the seventh day is 5%.
What analysts are saying
Jefferies analyst Kevin Grundy, who maintains a Buy rating on the stock, has raised Constellation Brands' price target to $316 from $305. Grundy anticipates a "strong" fiscal Q3 2022 report on based on optimistic management commentary at the latest broker conference, solid Mexican import trends, and sequential momentum in Nielsen data. As a result, Constellation remains Grundy's favorite large-cap growth company, with the possibility of an FY22 forecast raise.
Prior to the company's fiscal Q3 earnings report, Morgan Stanley analyst Dara Mohsenian boosted the firm's price objective on Constellation Brands from $254 to $303, maintaining an Overweight rating and keeping the stock as his "Top Pick." According to the analyst, despite an 18 percent gain since Constellation's last quarter report, Mohsenian sees considerable potential in the stock due to improving, above-consensus beer demand. For Q3 2022, Dara believes investors would focus on beer depletion patterns, so he boosted his projection to 7.9% from 6 percent while predicting a "slight" EPS gain and a "slight" increase in the FY22 EPS outlook.
Also, Constellation Brands' price target has been lifted to $271 from $268 by Barclays analyst Lauren Lieberman, who maintains a Buy rating on the stock. In the run-up to Constellation's fiscal Q3 results report, the analyst believes "sentiment feels increasingly constructive." In a research note, Lieberman informs investors that "healthy" scanner data support sustained high customer demand, and the stock performed well throughout December.
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