Constellation Brands, Inc. Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year

Constellation Brands, Inc. (NYSE:STZ) shareholders are probably feeling a little disappointed, since its shares fell 2.2% to US$250 in the week after its latest quarterly results. It looks like a credible result overall - although revenues of US$2.7b were what the analysts expected, Constellation Brands surprised by delivering a (statutory) profit of US$4.78 per share, an impressive 38% above what was forecast. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for Constellation Brands

Taking into account the latest results, the most recent consensus for Constellation Brands from 21 analysts is for revenues of US$10.6b in 2025. If met, it would imply a satisfactory 4.9% increase on its revenue over the past 12 months. Statutory per-share earnings are expected to be US$13.60, roughly flat on the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$10.6b and earnings per share (EPS) of US$13.40 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

The analysts reconfirmed their price target of US$301, showing that the business is executing well and in line with expectations. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Constellation Brands analyst has a price target of US$330 per share, while the most pessimistic values it at US$262. This is a very narrow spread of estimates, implying either that Constellation Brands is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The analysts are definitely expecting Constellation Brands' growth to accelerate, with the forecast 6.5% annualised growth to the end of 2025 ranking favourably alongside historical growth of 4.7% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 4.7% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Constellation Brands is expected to grow much faster than its industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at US$301, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Constellation Brands analysts - going out to 2027, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 3 warning signs for Constellation Brands that you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com