Yahoo Finance The Constellation Brands, Inc. (NYSE:STZ) Full-Year Results Are Out And Analysts Have Published New Forecasts
The annual results for Constellation Brands, Inc. (NYSE:STZ) were released last week, making it a good time to revisit its performance. It was a credible result overall, with revenues of US$10.0b and statutory earnings per share of US$9.39 both in line with analyst estimates, showing that Constellation Brands is executing in line with expectations. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
See our latest analysis for Constellation Brands
Taking into account the latest results, the consensus forecast from Constellation Brands' 22 analysts is for revenues of US$10.6b in 2025. This reflects a reasonable 6.6% improvement in revenue compared to the last 12 months. Per-share earnings are expected to leap 42% to US$13.37. In the lead-up to this report, the analysts had been modelling revenues of US$10.6b and earnings per share (EPS) of US$13.34 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$300, showing that the business is executing well and in line with expectations. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Constellation Brands at US$330 per share, while the most bearish prices it at US$264. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Constellation Brands' past performance and to peers in the same industry. It's clear from the latest estimates that Constellation Brands' rate of growth is expected to accelerate meaningfully, with the forecast 6.6% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 4.5% p.a. 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 4.9% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Constellation Brands to grow faster than the wider industry.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for Constellation Brands going out to 2027, and you can see them free on our platform here.
That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 2 warning signs with Constellation Brands , and understanding them should be part of your investment process.
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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.
