Beer and wine staple Constellation Brands Inc (NYSE:STZ) is gearing up for its fiscal third-quarter earnings report, due out after the close on Wednesday, Jan. 7. Amid continuously declining shipment volumes in the wine and spirits industry, analysts anticipate earnings of $2.66 per share on revenue of $2.18 billion, representing a year-over-year decrease of 18.2% and 11.6%, respectively.
Last report, the company's results beat estimates despite falling from the same quarter a year ago, and Constellation Brands stock notched its fourth consecutive post-earnings gain. Over the last two years, STZ has averaged a 4.4% earnings swing, regardless of direction, while the options pits are pricing in an 8.3% move this time around.
On the charts, STZ has rebounded slightly since its Nov. 10, five-year low of $126.45, last seen up 0.4% to trade at $143.06 today. The shares are still down 35.8% year over year, however, with long-term pressure at the 140-day moving average lingering overhead.
In the event of a positive post-earnings reaction, a bout of short covering could help give the shares a lift. Though short interest has begun to unwind, it still represents 7% of the stock's available float.
