Earnings Alerts

### SEO-Optimized Headline:Constellation Brands (STZ) Earnings: FY Comparable EPS Forecast Narrowed; Fiscal 2025 Outlook Updated

By September 3, 2024 No Comments
“`html

  • Constellation Brands updated its fiscal year 2025 EPS forecast to $13.60 – $13.80, compared to the previous forecast of $13.50 – $13.80, with an estimated EPS of $13.68.
  • The company now projects net sales growth between 4% and 6%, down from the previous range of 6% to 7%.
  • The forecast for operating cash flow remains $2.8 billion to $3.0 billion, with an estimated value of $2.98 billion.
  • The Wine and Spirits Business faces “incremental tactical pricing and marketing actions” due to significant top-line headwinds, which may lead to an impairment charge for the goodwill associated with this sector.
  • Constellation Brands acknowledges near-term macroeconomic headwinds but remains confident in achieving double-digit comparable EPS growth, raising the lower end of the initial comparable EPS guidance range for fiscal 2025.
  • Market analysts show strong confidence in the stock with 24 buy ratings, 2 hold ratings, and no sell ratings.

“`


Constellation Brands on Smartkarma

On Smartkarma, Baptista Research has provided insightful analyst coverage on Constellation Brands. In a report titled “Constellation Brands Inc.: Strong Brand Loyalty & Market Position In Beer & Other Major Drivers,” it is highlighted that Constellation Brands had a solid start to the first quarter of fiscal year 2025, showing robust performance, especially in its beer business. The company’s overall enterprise dollar sales outpaced the broader consumer packaged goods sector, showcasing significant market outperformance due to strong performances in its beer product lines. The Beer business specifically saw high single-digit sales increases, marking a 57th consecutive quarter of depletion growth.

In another report by Baptista Research titled “Constellation Brands: What Is Its Portfolio Transformation Strategy in Wine and Spirits? – Major Drivers,” Constellation Brands reported strong Q3 results driven by its beer business, achieving over 8% depletion growth for its beer portfolio. The report underlined the company’s continuous strong consumer demand, contributing to its 55th consecutive quarter of depletion growth and tenth leading share gains. Additionally, Constellation Brands executed $215 million of share repurchases in Q3, maintaining its net leverage ratio at 3.2x, excluding Canopy equity and earnings. The analysis provides valuable insights into Constellation Brands‘ performance and strategic moves in the market.


A look at Constellation Brands Smart Scores

FactorScoreMagnitude
Value2
Dividend3
Growth4
Resilience2
Momentum3
OVERALL SMART SCORE2.8

Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma

Constellation Brands, known for its wide range of alcoholic beverages in North America, Europe, Australia, and New Zealand, is viewed favorably for its growth potential and dividend payouts. With a Smart Score of 4 for Growth and 3 for Dividend, the company appears poised for long-term prosperity and income generation for investors. Despite scoring lower on Value and Resilience, rated at 2 each, Constellation Brands‘ Momentum score of 3 reflects a certain level of market enthusiasm surrounding its performance.

As investors consider the future outlook for Constellation Brands, the higher scores in Growth and Dividend could signal an optimistic trajectory for the company. Although facing challenges in terms of value and resilience, the company’s diverse portfolio of wine, imported beer, and distilled spirits positions it well for capitalizing on evolving consumer preferences. Overall, the Smart Scores suggest a promising long-term outlook for Constellation Brands amidst the ever-changing landscape of the beverage market.


Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
Have feedback on this article? Concerned about the content? Get in touch with us directly.


 

πŸ’‘ Before it’s here, it’s on Smartkarma

Sign Up for Free

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • βœ“ Unlimited Research Summaries
  • βœ“ Personalised Alerts
  • βœ“ Custom Watchlists
  • βœ“ Company Analytics and News
  • βœ“ Events & Webinars