Constellation Brands Inc. (STZ), a leading international producer and marketer of beverage alcohol brands, is slated to report second-quarter fiscal 2015 results on Oct 2, before the opening bell. In the last quarter, it posted a positive surprise of 16.3%. Let’s see how things are shaping up for this announcement.
Why a Likely Positive Surprise?
The company has been benefiting from its acquisitions and the strong demand for beer. Recently, it completed the acquisition of the Casa Noble tequila brand. Also, the company’s results have benefited from its Crown Imports acquisition, made last year. We are impressed with Constellation Brands’ constant focus on brand building and efforts to include new products in its wine and spirits businesses, which are likely to drive results. Moreover, its increase of retail distribution points and effective implementation of strategic merchandising initiatives, are likely to bolster results.
Earnings Whispers
Our proven model shows that Constellation Brands is likely to beat earnings because it has the right combination of two key ingredients.
Positive Zacks ESP: Earnings ESP, which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, is currently pegged at +1.74%. This is because the Most Accurate estimate of $1.17 is above the Zacks Consensus Estimate of $1.15.
Zacks Rank: Constellation Brands carries a Zacks Rank #3 (Hold). The combination of Constellation Brands’ Zacks Rank #3 and positive ESP makes us confident of an earnings beat.
Stocks That Warrant a Look
Here are some companies you may want to consider as our model shows that these have the right combination of elements:
Barnes & Noble, Inc. (BKS) has an Earnings ESP of +5.88% and a Zacks Rank #1 (Strong Buy).
Chipotle Mexican Grill, Inc. (CMG) has an Earnings ESP of +1.56% and a Zacks Rank #2 (Buy).
Foot Locker, Inc. (FL) has an Earnings ESP of +1.28% and a Zacks Rank #2.
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