Constellation Brands (NYSE:STZ) gained in trading after the company announced Fiscal fourth-quarter earnings that beat estimates. The beer, wine, and spirits giant reported adjusted earnings of $2.26 per share in Q4, compared to $1.98 per share in the same period last year, surpassing Street estimates of $2.11 per share.
The company behind brands like Corona and Modelo posted sales of $2.15 billion, marking a 7% year-over-year increase, surpassing consensus estimates of $2.1 billion. STZ’s beer business recorded sales growth of nearly 11%, while the depletion rate increased by 8.9%. The depletion rate is defined as the number of units sold at retail to the end consumer.
Looking forward, the winemaker is targeting earnings growth in the range of $13.40 to $13.70 per share, with net sales likely to increase between 6% and 7% in FY25
In addition, Constellation’s Board of Directors has declared a quarterly cash dividend of $1.01 per share of Class A stock. This is payable on May 17 to stockholders of record as of the close of business on May 3, 2024.
Is Constellation Brands a Good Stock to Buy?
Analysts remain bullish about STZ stock, with a Strong Buy consensus rating based on 14 Buys and two Holds. Over the past year, STZ has increased by more than 15%, and the average STZ price target of $297.73 implies an upside potential of 12.4% from current levels. However, these analyst ratings are likely to change after the company announces Fiscal Q4 results today.
