Constellation Brands (STZ, $223.46) beats Q4 earnings expectations
Beverage company Constellation Brands posted fourth quarter earnings that surpassed analysts’ expectations, on the back of beer sales strength and demand for high-end beverages.
The company’s diluted net earnings for the three months ending in February fell -5.3% from the year-ago quarter to $1.95 per share. Adjusted per-share earnings came in at $1.82, well above FactSet consensus of $1.58.
Revenues increased +3% year-over-year to $1.953 billion, compared to analysts' estimates of $1.9 billion tally. The company’s beer business was bolstered by a strong performance at off-premise channels, which more than offset weakness in on-premise channels with many bars and restaurants operating at limited capacity during the pandemic. Modelo Especial was number 1 import share gainer. Its wine and spirits business, high-end wine brands were driven by double-digit growth for Kim Crawford, Meiomi and The Prisoner Brand family.
Looking ahead, the company is projecting EPS to range from $6.90 to $7.20 and adjusted EPS excluding Canopy to range from $9.95 to $10.25 for fiscal 2022. The current FactSet consensus expectation for EPS is $10.43.
STZ in +5.88% Uptrend, growing for three consecutive days on March 10, 2025
Moving higher for three straight days is viewed as a bullish sign. Keep an eye on this stock for future growth. Considering data from situations where STZ advanced for three days, in of 332 cases, the price rose further within the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on February 19, 2025. You may want to consider a long position or call options on STZ as a result. In of 91 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for STZ just turned positive on February 13, 2025. Looking at past instances where STZ's MACD turned positive, the stock continued to rise in of 44 cases over the following month. The odds of a continued upward trend are .
STZ moved above its 50-day moving average on March 07, 2025 date and that indicates a change from a downward trend to an upward trend.
Bearish Trend Analysis
The 10-day RSI Indicator for STZ moved out of overbought territory on March 11, 2025. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 30 similar instances where the indicator moved out of overbought territory. In of the 30 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator has been in the overbought zone for 2 days. Expect a price pull-back in the near future.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where STZ declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
STZ broke above its upper Bollinger Band on March 07, 2025. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Aroon Indicator for STZ entered a downward trend on February 19, 2025. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (5.133) is normal, around the industry mean (4.006). P/E Ratio (30.858) is within average values for comparable stocks, (29.201). Projected Growth (PEG Ratio) (2.236) is also within normal values, averaging (2.099). Dividend Yield (0.013) settles around the average of (0.024) among similar stocks. P/S Ratio (5.141) is also within normal values, averaging (6.184).
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. STZ’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. STZ’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 94, placing this stock worse than average.
Notable companies
Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
General Information
an alcoholic beverages distributor
Industry BeveragesAlcoholic