Earnings Preview for Constellation Brands

On Thursday, January 07, Constellation Brands STZ will release its latest earnings report. Here is Benzinga's outlook for the company.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

Based on Constellation Brands management projections, analysts predict EPS of $2.38 on revenue of $2.23 billion. In the same quarter last year, Constellation Brands posted EPS of $2.14 on sales of $2.00 billion.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

The analyst consensus estimate would represent a 11.21% increase in the company's earnings. Revenue would be up 11.56% from the same quarter last year. Here is how the company's reported EPS has compared to analyst estimates in the past:

Stock Performance

Shares of Constellation Brands were trading at $216.95 as of January 05. Over the last 52-week period, shares are up 14.35%. Given that these returns are generally positive, long-term shareholders should be content going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Constellation Brands is scheduled to hold the call at 11:30:00 ET and can be accessed here.