Constellation Brands (STZ) Rating Increased to Hold at ValuEngine


In contrast, Constellation's wine and spirits business did not achieve the same sales momentum as beer, falling almost 8 percent and leading the company to sell about 30 of its low-end wines to California-based E. & J. Gallo Winery for $1.7 billion on Wednesday. Constellation Brands, Inc. has a 52-week low of $150.37 and a 52-week high of $236.62. Brands like Kim Crawford, Meiomi, Ruffino, The Prisoner, High West, and Svedka continue to make gains, and innovations like Robert Mondavi Private Selection Rum Barrel Aged Merlot, 7 Moons, and Cooper & Thief are also on the rise. The brands that will be divested are primarily priced at $11 and below, a category in which Constellation Brands has been facing continued weakness.

The New York-based alcohol producer brought in earnings of $1.84 per share on revenue of $1.79 billion for the quarter, compared to Street expectations of $1.72 EPS on revenue of $1.73 billion. Analysts polled by FactSet expected $1.73 billion. UBS Group assumed coverage on shares of Constellation Brands in a report on Thursday, December 13th. The company has a current ratio of 1.08, a quick ratio of 0.43 and a debt-to-equity ratio of 1.02.

In other Constellation Brands news, Director Barry A. Fromberg sold 1,500 shares of the company's stock in a transaction dated Friday, February 15th. Constellation has said it will be at least another year before its weed investment adds to earnings.

Constellation earned an adjusted profit of $1.84 per share on sales of $1.80 billion in the fourth quarter.

Constellation owns about 100 drinks brands including Corona and Modelo beers, and 40 wineries, breweries and distilleries.

Speaking on a conference call with investors on Thursday following the beer and wine-maker's fourth-quarter earnings, Bill Newlands said he expects Canopy Growth to benefit from more brick-and-mortar retail stores coming online in Canada and the roll-out of vape, edible, beverage products in that market next fall.