Constellation Brands Inc (STZ) is reporting earnings on Thursday. Lets focus in on how the stock is performing.
A consensus of analyst reports suggests Constellation Brands Inc will report an EPS (earnings per share) of $2.81, GAAP Estimate of $2.82, on Revenue of $2.51B. Over the last 90 days, analysts have lowered estimates 7times and raised them 5 times.
There are three primary things that STZ bulls will be concerned with. The first is that the reported EPS beat analysts estimates. The second is that the beat is on higher than expected revenues. Third, that the company guides analysts to robust growth going forward. If all check out, the stock should react accordingly.
If you're a bear you'll primarily care about two things. The first is that the reported EPS underperformed analysts estimates. The stock should move on just that news alone. The second is that the report paints a pretty depressing picture of how the company will decelerate or even see a decline in revenues over the following quarters. EPS underperformance, and a negative growth story, those are the things to watch.
Regardless of which side of the fence you're on, it's important to note that sometimes the company's earnings report plays less of a role in moving the price than the analysts' estimates. This can be caused by a change in the analysts' estimates based on the Q&A from the conference call with management discussing the earnings report.
As of September 28 shares of STZ are trading at $232.73. Over the last 52-week period, the price is down -10.41%. A larger move here can mean investors will have a stronger bullish or bearish outlook on the stock.