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

Petr Huřťák /
2024/07/02 3:01 am EDT

Beer, wine, and spirits company Constellation Brands (NYSE:STZ) will be reporting earnings tomorrow morning. Here's what to expect.

Constellation Brands beat analysts' revenue expectations by 2% last quarter, reporting revenues of $2.14 billion, up 7.1% year on year. It was a decent quarter for the company, with an impressive beat of analysts' organic revenue growth estimates but a miss of analysts' gross margin estimates.

Is Constellation Brands a buy or sell going into earnings? Read our full analysis here, it's free.

This quarter, analysts are expecting Constellation Brands's revenue to grow 6.2% year on year to $2.67 billion, in line with the 6.4% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $3.45 per share.

Constellation Brands Total Revenue

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Constellation Brands has missed Wall Street's revenue estimates twice over the last two years.

Looking at Constellation Brands's peers in the consumer staples segment, some have already reported their Q2 results, giving us a hint as to what we can expect. McCormick posted flat year-on-year revenue, meeting analysts' expectations, and Simply Good Foods reported revenues up 3.1%, in line with consensus estimates. McCormick traded up 4.8% following the results while Simply Good Foods's stock price was unchanged.

Read our full analysis of McCormick's results here and Simply Good Foods's results here.

Stocks--especially those trading at higher multiples--had a strong end of 2023, but 2024 has seen periods of volatility. Mixed inflation signals have led to uncertainty around rate cuts, and while some of the consumer staples stocks have fared somewhat better, they have not been spared, with share prices down 4.9% on average over the last month. Constellation Brands is up 2.5% during the same time and is heading into earnings with an average analyst price target of $299.7 (compared to the current share price of $256.5).

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