Yahoo Finance Constellation Brands, Inc. Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next
Constellation Brands, Inc. (NYSE:STZ) shareholders are probably feeling a little disappointed, since its shares fell 2.2% to US$250 in the week after its latest quarterly results. It looks like a credible result overall - although revenues of US$2.7b were what the analysts expected, Constellation Brands surprised by delivering a (statutory) profit of US$4.78 per share, an impressive 38% above what was forecast. The 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Constellation Brands after the latest results.
Check out our latest analysis for Constellation Brands
Taking into account the latest results, the most recent consensus for Constellation Brands from 21 analysts is for revenues of US$10.6b in 2025. If met, it would imply an okay 4.9% increase on its revenue over the past 12 months. Statutory per share are forecast to be US$13.60, approximately in line with the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$10.6b and earnings per share (EPS) of US$13.40 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
It will come as no surprise then, to learn that the consensus price target is largely unchanged at US$301. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Constellation Brands at US$330 per share, while the most bearish prices it at US$262. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's clear from the latest estimates that Constellation Brands' rate of growth is expected to accelerate meaningfully, with the forecast 6.5% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 4.7% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 4.7% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Constellation Brands to grow faster than the wider industry.
The Bottom Line
The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Constellation Brands going out to 2027, and you can see them free on our platform here.
You still need to take note of risks, for example - Constellation Brands has 3 warning signs we think you should be aware of.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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