Constellation (STZ, $187.09) beats fiscal Q4 earnings estimates, says cheers to beer
Constellation Brands fiscal fourth quarter earnings surpassed analysts’ expectations, largely in part due to the beverage company’s beer sales. The company is also pulling out from its low-end wine brands, apparently to focus on better selling products.
Comparable earnings for the three months ending February came in at $1.84 per share, down -3.15% from the year-ago quarter, but higher than the Street estimate of $1.72 per share.
The company’s sales of $1.797 billion also beat analysts' estimates of $1.73 billion. Sales were also +2% higher compared to the year-ago period.
As it is, consumers are increasingly adopting healthier lifestyles and food habits. People who still consume alcohol are apparently preferring higher-quality wine or premium beer. It is probably this shift in consumer choices that has led Constellation to re-allocate its business more towards beer and other high-end beverages.
On Wednesday, Constellation announced plans to sell off about 30 brands from its wine and spirits portfolio to E. & J. Gallo Winery for $1.7 billion. The company will also be launching its first ever non-beer beverage, named Corona Refresca, during its first quarter.
For the latest reported quarter, Constellation’s beer sales climbed +9.3% year-over-year to $1.09 billion. According to the company, its beer business was the top U.S. market share gainer during the holiday season. It mentioned its brands Modelo Especial, Corona Premier and Corona Familiar as major contributors to its solid beer sales.
Sales from its wine and spirits segment, on the other hand, plunged -7.6% year-over-year to $707.1 million.
For fiscal full-year 2020, Constellation forecasts that its comparable earnings would range between $8.50 and $8.80 per share, excluding Canopy Growth equity earnings (Constellation bought a 38% stake in the marijuana company last year, as a sign of its plans to expand footprints in the cannabis space). The company hopes to have a 7%-9% growth in operating income from its beer division, while anticipating wine and spirits to be hit by -30% to -35% decline in operating incomes.
Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
STZ in downward trend: 10-day moving average moved below 50-day moving average on August 28, 2026
The 10-day moving average for STZ crossed bearishly below the 50-day moving average on August 28, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In 9 of 15 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are 60%.
Technical Analysis (Indicators)
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on September 01, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on STZ as a result. In 48 of 92 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 52%.
The Moving Average Convergence Divergence Histogram (MACD) for STZ turned negative on August 28, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 41 similar instances when the indicator turned negative. In 21 of the 41 cases the stock turned lower in the days that followed. This puts the odds of success at 51%.
STZ moved below its 50-day moving average on August 27, 2026 date and that indicates a change from an upward trend to a downward trend.
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 50 of 62 cases within the following month. The odds of a continued downward trend are 60%.
The Aroon Indicator for STZ entered a downward trend on September 16, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Bullish Trend Analysis
The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where STZ's RSI Oscillator exited the oversold zone, 20 of 35 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 57%.
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 12 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
Following a +2.34% 3-day Advance, the price is estimated to grow further. Considering data from situations where STZ advanced for three days, in 158 of 306 cases, the price rose further within the following month. The odds of a continued upward trend are 52%.
STZ may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Fundamental Analysis (Ratings)
The Tickeron Valuation Rating of 18 (best 1 - 100 worst) indicates that the company is slightly undervalued 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 (2.545) is normal, around the industry mean (2.110). P/E Ratio (11.717) is within average values for comparable stocks, (17.084). Projected Growth (PEG Ratio) (1.564) is also within normal values, averaging (2.425). Dividend Yield (0.033) settles around the average of (0.038) among similar stocks. P/S Ratio (2.366) is also within normal values, averaging (1.539).
The Tickeron SMR rating for this company is 41 (best 1 - 100 worst), indicating strong sales and a profitable 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 Price Growth Rating for this company is 63 (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 PE Growth Rating for this company is 88 (best 1 - 100 worst), pointing to worse than average 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 Profit vs. Risk Rating rating for this company is 100 (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 75, 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
Advertisement
General Information
an alcoholic beverages distributor
Industry FoodMeatFishDairy
Advertisement