Constellation Brands Hits Yearly High - Analyst Blog

By Zacks Equity Research,

Shutterstock photo

The shares of Constellation Brands Inc. ( STZ ) went on to craft a new high of $49.23 on Monday, Apr 8. This alcoholic beverage company eventually closed at $48.57, up 1.5% from the previous day's session and generated a year-to-date return of roughly 29.3%. The company currently trades at a forward P/E of 18.7x, a 3.1% discount to the peer group average of 19.3x.

An impressive record of beating the quarterly earnings expectations, sustained focus on brand building as well as initiatives to introduce new products in its wine and spirits business, are the major attributes that pushed the shares of Constellation Brands to a new high. Average volume of shares traded over the last 3 months stands at approximately 4,966K.

The recent third-quarter fiscal 2013 results have added to its streak of upbeat performances. Constellation Brands posted adjusted earnings of 63 cents per share that surged from 50 cents in the year-ago quarter and surpassed the Zacks Consensus Estimate of 55 cents by 14.6%, primarily driven by increased sales and improved margins. In the last 4 quarters, the company has beaten the Zacks Consensus Estimates by an average of 32.5%.

Net sales in the quarter increased 9% to $766.9 million from the year-ago quarter. The hike was driven by higher volumes and better product mix.

Bolstered by a strong quarterly performance, the company raised its fiscal 2013 adjusted earnings guidance to a range of $2.10-$2.20 per share, up from the earlier forecast of $2.00-$2.10. However, the projected earnings of this Zacks Rank #4 (Sell) stock reflects a decline of 10.3% to 6% from fiscal 2012.

Constellation Brands is slated to report its fourth quarter and fiscal 2013 results on Apr 10. The current Zacks Consensus Estimates for the quarter and fiscal year stand at 45 cents and $2.18 per share, respectively.

Alongside, companies such as Best Buy Co. Inc. ( BBY ), Macy's Inc. ( M ) and Fifth & Pacific Companies Inc. ( FNP ) achieved new 52-week highs of $26.29, $44.24 and $21.18, respectively, on Monday, Apr 8.

BEST BUY (BBY): Free Stock Analysis Report

FIFTH PACIFIC (FNP): Free Stock Analysis Report

MACYS INC (M): Free Stock Analysis Report

CONSTELLATN BRD (STZ): Free Stock Analysis Report

To read this article on click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , Business , Stocks
Referenced Stocks: BBY , FNP , M , STZ

More from


Follow on:

Find a Credit Card

Select a credit card product by:
Select an offer:
Data Provided by