Beverage maker Constellation Brands (NYSE:STZ) is scheduled to release its fourth quarter Fiscal 2024 results on April 11, before the market opens. The company’s performance might have benefitted from the growing Beer business as demand for its popular brands, Corona and Modelo, continues to remain strong. However, weakness in the Wine and Spirits category might impact revenues to some extent.
For the fourth quarter, Wall Street expects STZ to report sales of $2.1 billion, up 5% year-over-year. Further, the company is expected to post earnings of $2.11 per share, reflecting an increase of 6.6% from the year-ago quarter.
Analysts Weigh in
Heading into the Q4 results release, three Wall Street analysts rated Constellation Brands stock a Buy. Among the bullish analysts, RBC Capital analyst Nik Modi believes that the strength in the beer market should lead to higher sales in Q4.
Another analyst, Peter Grom from UBS, is also optimistic about the STZ’s future performance. He raised the price target on STZ stock to $312 from $310, with the new target implying an upside of 18.6% from the current level.
Is STZ Stock a Good Buy?
Overall, Wall Street is optimistic about Constellation Brands. The stock has a Strong Buy consensus rating based on 14 Buys and two Holds assigned in the past three months. The analysts’ average price target on STZ stock of $297.73 implies a 13.22% upside potential. Shares of the company are up more than 9% so far in 2024.
Insights from Options Trading Activity
Options traders are pricing in a +/- 3.49% move on STZ’s earnings, greater than the previous quarter’s earnings-related move of 2.15%.
The anticipated earnings move is determined by computing the at-the-money straddle of the options closest to the expiration after the earnings announcement.
Learn more about TipRanks’ Options tool here.
Concluding Thoughts
STZ’s investments in expanding manufacturing facilities and strategic acquisitions reflect its focus on long-term growth and strengthening its foothold in the beverage industry. Furthermore, the company’s efforts to introduce new flavors support market share gains in the Beer category.
Also, bullish analysts’ views and expectations of higher sales and earnings add to the positive sentiment surrounding STZ’s upcoming earnings release.
