This week, Constellation Brands stock (STZ) is likely to disclose its fiscal 2025 first-quarter results. According to the current analysts' forecast, the alcoholic beverage company anticipates growth in revenue and earnings during the quarter.
STZ Investors Await For An Upbeat Earning Report
Wall Street anticipates a year-over-year increase in STZ earnings due to higher revenues. However, how the results compare to these estimates will likely influence the actual stock price.
The stock price could increase if the main financial metrics in the forthcoming earnings report surpass expectations. Alternatively, it may decline if the results are inadequate.
Management's discussion of business conditions during the earnings call will significantly influence the sustainability of any immediate price change and future earnings forecasts. Nevertheless, it is worthwhile to evaluate the probability of a positive earnings per share (EPS) surprise.
The current Consensus Estimate for the company's first-quarter earnings is $3.46 per share, representing an 18.9% increase from last year. The consensus revenue estimate is $2.7 billion, which indicates a 6.3% increase from the previous year's quarter.
STZ's Recent Strategy Seems Potent To Bulls
Constellation Brands' performance has been significantly enhanced for several quarters due to its efforts to elevate its brands through premiumization and its robust brand portfolio. The management's forecast is solid for expanding its beer portfolio, particularly Modelo Especial and Corona Extra.
Moreover, the premiumization strategy has been effective, as evidenced by the accelerated growth of its Power Brands. Significant growth drivers in the Wine & Spirits segment include high-end brands like Kim Crawford, Meiomi, and The Prisoner Brand Family.
The premiumization of the beer segment has resulted in growth in the flavored category, which includes seltzers, flavored beer, ready-to-drink spirits, flavored malt beverages, and traditional beer. These factors presumably influenced the reported quarter's revenue growth.
