Name of opportunity: 👀
Constellation Brands, Inc
Earnings announcement: 📣
By the opening bell on Wednesday morning, Constellation Brands will have announced its Q2 earnings. Analysts expect earnings per share to increase to $3.46 per share, from $2.91 per share in the year prior. The beer, wine and spirits company is projected to report revenue of $2.67 billion for Q2 2024, a year on year increase of 6.2%.
How hot is this investment opportunity? 🔥🔥🔥
It’s currently rated as a ‘Buy’ and analysts predict that the value of this stock will rise. They think it could go from $256.17 to $300.76 in the next 12 months. If you invested $1000, you might profit $177.29. Reasons for this increase in the value of the stock could be a high performance in Q2. If Constellation does live up to expectations - or even exceed them! - the company’s ability to continue to grow and increase its revenue and EPS will be demonstrated loud and clear, enticing investors to buy.
Constellation also offers dividends, with a yield of 1.35%, which means that for every dollar you invest in their stock, you would receive 1.35 cents back in dividends annually. For example, if you invested $1000 in Constellation Brands Inc., you would receive $13.50 in dividends over the course of a year based on the last 12 months. While this is considered ‘Below Average’ by analysts, it could still be a good addition to a portfolio based around earning dividends. While the payments are low, they have been consistent.
The company’s Q1 results showed that wine and spirits sales have been falling - but sales of beer are growing, with an 11% increase from Q4 2023 to Q1 2024. If Constellation’s beer sales continue to be strong, or are even higher this quarter, it will be a good sign for investors.
Is it cocktail hour for Constellation?: 🍸
Constellation Brands, Inc. is an international beverage and alcohol company. The company is a producer and marketer of beer, wine, and spirits with operations in the United States, Mexico, New Zealand, and Italy. Its most famous products include the beers Modelo and Corona. Its segments include Beer, Wine and Spirits, and Canopy. Canopy is a cannabis producer Constellation invested in, in 2018, and has since moved away from - in April this year it was announced that Constellation would convert its shares in Canopy to non-voting shares, and Constellation would no longer have representation on the other company’s board. Constellation lost money on its investment in Canopy so analysts feel positive about what this move means for the beverages company.
Which neme?: 🔍
‘This Week’s Earnings’
Download Nemo to check in on Constellation Brands on Wednesday - will the earnings exceed analysts’ expectations?
