Constellation Brands Earnings Preview

Wine and spirits maker and marketer Constellation Brands

reports fiscal third-quarter results on Thursday before the bell and analysts are expecting profit of 53 cents a share on $722.8 million in revenue. The consensus estimate has been trimmed to 52 cents from 56 cents a share over the past three months. In the previous quarter, Constellation earned 76 cents a share on sales of $690.2 million, a 20% slide from the year earlier number. Revenue has fallen in each of the past two quarters and shares of Constellation have lost 4.8% in the past year, though the stock is up over 7% in the past month. Constellation's wine labels include Robert Mondavi Brands, Clos du Bois, Blackstone, Estancia, Arbor Mist, Toasted Head, Simi, Black Box, Ravenswood, Rex Goliath, Kim Crawford, Franciscan Estate, Wild Horse, Ruffino, Nobilo, Mount Veeder, Inniskillin, and Jackson-Triggs and the company markets the Svedka Vodka and Black Velvet Canadian Whisky spirits. Constellation's beer brands inlcude Corona Extra, Corona Light, Coronita, Modelo Especial, Pacifico, Negra Modelo, and Victoria. The shares currently trade at 9.3 times forward earnings and 1.55 times book value. The average price target on Constellation is $23, less than 15% from where the stock currently resides. Bank of America recently restarted coverage of the stock with a Buy rating and $23 price target. In the past six months, Constellation has been sharply outperformed by rivals Diageo

and Brown Forman

.