Trade Report: The Constellation Brands Inc. (STZ) Releases FY17 Earnings Guidance

The Constellation Brands Inc. (STZ) Releases FY17 Earnings Guidance

Constellation Brands Inc. (NYSE:STZ) updated its FY17 earnings guidance on Wednesday. The company provided earnings per share (EPS) guidance of $6.30-6.45 for the period, compared to the Thomson Reuters consensus estimate of $6.30.

A number of equities analysts have weighed in on the company. Zacks Investment Research lowered Constellation Brands from a buy rating to a hold rating in a research note on Tuesday, September 6th. RBC Capital Markets set a $181.00 price objective on Constellation Brands and gave the company a buy rating in a research report on Wednesday, September 28th. Wells Fargo & Co. reiterated an outperform rating and set a $185.00 price objective on shares of Constellation Brands in a research report on Wednesday, July 6th. Credit Agricole SA reiterated an outperform rating on shares of Constellation Brands in a research report on Monday, August 22nd. Finally, Bank of America Corp. reiterated a buy rating and set a $185.00 price objective on shares of Constellation Brands in a research report on Friday, September 30th. Six equities research analysts have rated the stock with a hold rating, fourteen have issued a buy rating and one has assigned a strong buy rating to the stock. The company presently has an average rating of Buy and an average target price of $175.27.

Constellation Brands Inc. (NYSE:STZ) opened at 165.85 on Wednesday. Constellation Brands Inc. has a 1-year low of $130.23 and a 1-year high of $168.68. The stock has a market cap of $33.25 billion, a PE ratio of 29.88 and a beta of 0.63. The stock has a 50 day moving average price of $165.24 and a 200-day moving average price of $160.15.

Constellation Brands (NYSE:STZ) last issued its quarterly earnings data on Wednesday, October 5th. The company reported $1.77 earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of $1.65 by $0.12. Constellation Brands had a return on equity of 17.66% and a net margin of 15.53%. The company had revenue of $2.02 billion for the quarter, compared to analysts’ expectations of $1.96 billion. During the same period in the previous year, the firm posted $1.56 earnings per share. The firm’s revenue for the quarter was up 16.6% on a year-over-year basis. On average, equities analysts expect that Constellation Brands Inc. will post $6.30 EPS for the current year.

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, November 22nd. Shareholders of record on Tuesday, November 8th will be paid a dividend of $0.40 per share. This represents a $1.60 annualized dividend and a yield of 0.96%. Constellation Brands’s payout ratio is currently 28.78%.

In other news, VP Thomas Michael Kane sold 7,000 shares of the company’s stock in a transaction that occurred on Thursday, July 28th. The stock was sold at an average price of $163.26, for a total transaction of $1,142,820.00. Following the transaction, the vice president now owns 8,764 shares of the company’s stock, valued at $1,430,810.64. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, EVP William F. Hackett sold 8,000 shares of the company’s stock in a transaction that occurred on Thursday, July 21st. The shares were sold at an average price of $164.67, for a total value of $1,317,360.00. Following the transaction, the executive vice president now directly owns 54,934 shares in the company, valued at approximately $9,045,981.78. The disclosure for this sale can be found here. Company insiders own 10.63% of the company’s stock.

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. FMR LLC boosted its position in Constellation Brands by 0.7% in the second quarter. FMR LLC now owns 10,667,795 shares of the company’s stock worth $1,764,453,000 after buying an additional 71,739 shares in the last quarter. Third Point LLC boosted its position in Constellation Brands by 13.3% in the second quarter. Third Point LLC now owns 2,000,000 shares of the company’s stock worth $330,800,000 after buying an additional 235,000 shares in the last quarter. Senator Investment Group LP boosted its position in Constellation Brands by 4.0% in the second quarter. Senator Investment Group LP now owns 1,300,000 shares of the company’s stock worth $215,020,000 after buying an additional 50,000 shares in the last quarter. Parametric Portfolio Associates LLC boosted its position in Constellation Brands by 0.8% in the second quarter. Parametric Portfolio Associates LLC now owns 591,040 shares of the company’s stock worth $97,758,000 after buying an additional 4,890 shares in the last quarter. Finally, Marshall Wace LLP boosted its position in Constellation Brands by 35.7% in the second quarter. Marshall Wace LLP now owns 506,000 shares of the company’s stock worth $83,693,000 after buying an additional 133,250 shares in the last quarter. 75.05% of the stock is currently owned by hedge funds and other institutional investors.

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