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Analysts expect more growth at Constellation

Analysts expect Constellation Brands Inc. to report increases in fiscal fourth-quarter and year-end sales and profit when the Victor-based beer, wine and spirits firm reports its financial results Thursday.

Analysts polled by Zacks Investment Research expect the company to post fourth-quarter earnings per share of $1.37, up 15 percent from $1.19 during the previous year’s quarter. They expect sales to rise 3 percent to $1.59 billion from $1.54 billion.

For the year, the analysts expect Constellation Brands to report earnings per share of $6.64, up 22 percent from $5.43 the prior year. Sales are expected to reach $7.3 billion, up from $6.5 billion in fiscal 2016. Constellation Brands’ fiscal year ended Feb. 28.

In a recent report, Zack’s Equity Research noted Constellation Brands is in good shape on the back of its brand strength, strategic initiatives and earnings history. The research firm noted that over the past year, Constellation Brands’ stock rose nearly 10 percent, while the industry gained 1.8 percent.

Shares of Constellation Brands (NYSE: STZ) were trading midweek near $163. Its 52-week range is $144 to $173.55 a share.

Constellation Brands ranked first on the most recent Rochester Business Journal list of public companies, ranked by market value. The company has 725 local workers.

The business in January announced several management changes. Those moves included naming William Newlands as chief operating officer, a new position within the company.

A 30-year industry veteran, Newlands joined Constellation in 2015 as executive vice president and chief growth officer and also served as president of the Wine & Spirits Division.

In his new role, Newlands oversees the Beer Division and Wine & Spirits Division, focusing on ways to grow the businesses.

Constellation Brands also recently announced its Modelo Especial brand reached a multiyear partnership agreement with the Chicago White Sox, naming the brew as the official import beer of the baseball team.

Constellation Brands has received several honors and recognitions in the past year.

The company was ranked seventh on the 2016 Fortune list of “100 Fastest-Growing Companies,” which honors the top three-year performers in revenue, profit and stock return. Forbes ranked Constellation Brands 92nd on its 2016 “World’s Most Innovative Companies” list based on the potential to generate future profitable growth.

And Harvard Business Review recognized Robert Sands, Constellation Brands’ president and CEO, as one of the top “100 World’s Best-Performing CEOs” in 2016 based on environmental, social and corporate governance successes.

Most recently, Constellation Brands was recognized by Fortune as one the “World’s Most Admired Companies” for 2017.
In the magazine’s beverages industry category, Constellation was ranked fourth and scored highly in all nine criteria, including quality of products/services, innovation and social responsibility.

The company announced this month a comprehensive expansion of its parental leave benefits for all eligible employees in the United States.
New birth mothers now qualify for 16 weeks of fully paid leave and any employee, regardless of gender or sexual orientation, can now take up to eight weeks of paid leave when they welcome a new baby or child to their family, including through adoption or foster placement.

3/31/2017 (c) 2017 Rochester Business Journal.

To obtain permission to reprint this article, call 585-363-7269 or email madams@bridgetowermedia.com.

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