Earnings To Watch: Constellation Brands (STZ) Reports Q2 Results Tomorrow

Beer, wine, and spirits company Constellation Brands (NYSE:STZ) will be reporting results this Tuesday after the bell. Here’s what to expect.

Constellation Brands beat analysts’ revenue expectations by 1.9% last quarter, reporting revenues of $2.16 billion, up 1.2% year on year. It was a mixed quarter for the company, with an impressive beat of analysts’ gross margin estimates but full-year EPS guidance missing analysts’ expectations.

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 decline 4.1% year on year to $2.55 billion, a reversal from the 5.8% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $3.29 per share.

Heading into earnings, analysts covering the company have grown increasingly bearish with revenue estimates seeing 8 downward revisions over the last 30 days (we track 15 analysts). Constellation Brands has missed Wall Street’s revenue estimates four times 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 General Mills reported a revenue decline of 3.3%, falling short of estimates by 0.5%. McCormick traded up 3.6% following the results while General Mills was down 5.6%.

Read our full analysis of McCormick’s results here and General Mills’s results here.

Investors in the consumer staples segment have had fairly steady hands going into earnings, with share prices down 1.1% on average over the last month. Constellation Brands is down 7.3% during the same time and is heading into earnings with an average analyst price target of $210.29 (compared to the current share price of $161.40).

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