Yahoo Finance Constellation Brands, Inc. Beat Analyst Estimates: See What The Consensus Is Forecasting For Next Year
Constellation Brands, Inc. (NYSE:STZ) investors will be delighted, with the company turning in some strong numbers with its latest results. It was overall a positive result, with revenues beating expectations by 2.6% to hit US$2.0b. Constellation Brands reported statutory earnings per share (EPS) US$1.85, which was a notable 16% above what analysts had forecast. Analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. With this in mind, we've gathered the latest statutory forecasts to see what analysts are expecting for next year.
View our latest analysis for Constellation Brands
Taking into account the latest results, the 16 analysts covering Constellation Brands provided consensus estimates of US$7.95b revenue in 2021, which would reflect a discernible 3.5% decline on its sales over the past 12 months. Statutory earnings per share are expected to surge 109% to US$9.08. Before this earnings report, analysts had been forecasting revenues of US$7.91b and earnings per share (EPS) of US$8.97 in 2021. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
There were no changes to revenue or earnings estimates or the price target of US$223, suggesting that the company has met expectations in its recent result. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Constellation Brands, with the most bullish analyst valuing it at US$266 and the most bearish at US$189 per share. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.
Zooming out to look at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up both against past performance, and against industry growth estimates. These estimates imply that sales are expected to slow, with a forecast revenue decline of 3.5% a significant reduction from annual growth of 6.8% over the last five years. Compare this with our data, which suggests that other companies in the same market are, in aggregate, expected to see their revenue grow 4.4% next year. It's pretty clear that Constellation Brands's revenues are expected to perform substantially worse than the wider market.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with analysts reconfirming that earnings per share are expected to continue performing in line with their prior expectations. Fortunately, analysts also reconfirmed their revenue estimates, suggesting sales are tracking in line with expectations - although our data does suggest that Constellation Brands's revenues are expected to perform worse than the wider market. The consensus price target held steady at US$223, with the latest estimates not enough to have an impact on analysts' estimated valuations.
Still, the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Constellation Brands going out to 2022, and you can see them free on our platform here..
You can also view our analysis of Constellation Brands's balance sheet, and whether we think Constellation Brands is carrying too much debt, for free on our platform here.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
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