Constellation Brands Expected to Post Year-on-Year Gains in Fiscal Q3 Earnings

Constellation Brands (STZ) is expected to post year-over-year gains in fiscal third-quarter earnings and revenue when the maker of beer, wine and spirits releases the figures next Thursday.

For the quarter ended in November, the company, whose brands include Corona, Robert Mondavi and SVEDKA Vodka, is expected by analysts polled by Capital IQ to report adjusted earnings per share of $1.71, up from $1.42 a year earlier. The company’s revenue for the quarter is expected by the analysts to reach $1.80 billion, up from $1.64 billion in the year-earlier period.

Over the past year, Constellation Brands has surpassed the consensus estimates on both the top and bottom lines. It hasn’t had a top-line miss since the quarter ended in August 2015 and hasn’t had a bottom-line miss since the quarter ended in August 2014.

Earlier this month, RBC Capital Markets placed the company’s shares on its 2017 Focus List as it pointed out that Constellation Brands’ shares have underperformed the market since the US election in November, which it attributed to three reasons: Excise tax concerns on Mexican imports; the impact of President-elect Donald Trump’s campaign promise to deport immigrants that have overstayed their visas; and overall market dynamics.

In the note, RBC said it doesn’t believe any of those factors will impact the company’s earnings power over the next 12 months. Rather it expects long-term earnings power “will be protected by Constellation’s ability to increase its sourcing of beer ingredients/packaging from the US.”

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