Constellation Brands Earnings Preview: Double-Digit Growth?

Constellation Brands, Inc. STZ is scheduled to report first quarter financial results on Wednesday before the market opens. According to Estimize, the company is expected to deliver 14 percent year-over-year earnings growth.

In the same quarter last year, earnings came in at $1.07 per share, and revenue, at $1.526 billion. For the current quarter, the Street is modeling consensus earnings of $1.22 per share on revenue of $1.615 billion, while the crowd is projecting earnings of $1.24 per share on revenue of $1.621 billion.

It should be noted from the chart above that Constellation has a history of surpassing estimates.

Related Link: Beer Pair Trade? Why Boston Beer Could Be Riskier Than Constellation Brands

A Top Pick?

In a recent report, Susquehanna analyst Pablo Zuanic took a look at Constellation, compared to the Boston Beer Co Inc SAM. The analyst thinks “the success of Modelo Especial is one of the main drivers of Constellation’s consistent 20-percent sales growth."

Despite the stock’s hefty valuation, Zuanic believes the company has more room for upside than downside in the near term.

Also, RBC Capital Markets selected Constellation among its top picks, setting a $130 price target, which implies an upside of more than 11 percent from the current stock price, slightly above $116.