Constellation Brands Declares Quarterly Dividend of $1.03
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Source: seekingalpha
- Quarterly Dividend Announcement: Constellation Brands has declared a quarterly dividend of $1.03 per share, consistent with previous distributions, demonstrating the company's stability and commitment to shareholder returns in the current economic climate.
- Dividend Yield: The forward yield of 2.96% reflects the company's ability to remain attractive to investors, even amidst a value-conscious consumer backdrop, thereby enhancing investor confidence.
- Payment Schedule: The dividend will be payable on August 13, with a record date of July 30 and an ex-dividend date also set for July 30, ensuring shareholders receive their returns promptly.
- Market Share Growth: Constellation Brands has successfully gained market share in a value-conscious consumer environment, indicating that its products continue to resonate well in a competitive market landscape.
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Analyst Views on STZ
Wall Street analysts forecast STZ stock price to rise
15 Analyst Rating
7 Buy
7 Hold
1 Sell
Moderate Buy
Current: 139.090
Low
135.00
Averages
163.00
High
209.00
Current: 139.090
Low
135.00
Averages
163.00
High
209.00
About STZ
Constellation Brands, Inc. is a producer and marketer of beer, wine, and spirits with operations in the United States, Mexico, New Zealand, and Italy with brands, such as Corona Extra, Modelo Especial, Robert Mondavi Winery, Kim Crawford, The Prisoner Wine Company, High West, Casa Noble, and Mi CAMPO. Its segments include Beer, Wine and Spirits, and Corporate Operations and Other. In the Beer segment, its portfolio consists of high-end imported beer brands and ABAs. It has a perpetual brand license to produce its Mexican beer portfolio and to import, market, and sell such a portfolio in the United States. In the Wine and Spirits segment, it sells a portfolio that includes higher-end wine brands complemented by certain higher-end spirits brands. Its Corporate Operations and Other segment consists of costs of corporate development, corporate finance, corporate strategy, executive management, growth, human resources, internal audit, investor relations, IT, legal and public relations.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Constellation Brands Set to Announce Q1 Earnings on June 30
- Earnings Announcement: Constellation Brands is set to release its Q1 2023 earnings on June 30 after market close, with consensus EPS estimate at $3.21, reflecting a 0.3% year-over-year decline, and revenue estimate at $2.39 billion, down 5.2% year-over-year, indicating market pressures the company is facing.
- Historical Performance Review: Over the past two years, Constellation Brands has beaten EPS estimates 75% of the time and revenue estimates 50% of the time, suggesting a degree of capability to exceed expectations, despite current challenges.
- Expectation Revision Dynamics: In the last three months, EPS estimates have seen 2 upward revisions and 13 downward revisions, while revenue estimates have experienced 5 upward and 5 downward revisions, indicating analyst divergence on the company's future performance, which may affect investor confidence.
- Market Analysis and Ratings: TD Cowen upgraded Constellation Brands, suggesting the company may benefit from multiple tailwinds during the upcoming World Cup, although consumer weakness presents a backdrop where buying opportunities still exist.
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Constellation Brands Declares Quarterly Dividend of $1.03
- Quarterly Dividend Announcement: Constellation Brands has declared a quarterly dividend of $1.03 per share, consistent with previous distributions, demonstrating the company's stability and commitment to shareholder returns in the current economic climate.
- Dividend Yield: The forward yield of 2.96% reflects the company's ability to remain attractive to investors, even amidst a value-conscious consumer backdrop, thereby enhancing investor confidence.
- Payment Schedule: The dividend will be payable on August 13, with a record date of July 30 and an ex-dividend date also set for July 30, ensuring shareholders receive their returns promptly.
- Market Share Growth: Constellation Brands has successfully gained market share in a value-conscious consumer environment, indicating that its products continue to resonate well in a competitive market landscape.
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- Adjusted Earnings: Excluding items, the adjusted earnings stood at $590.6 million or $3.43 per share, showcasing strong earnings capability despite a revenue decline, reflecting effective cost management strategies.
- Revenue Decline: The first-quarter revenue fell to $2.43 billion, down 3.2% from $2.51 billion last year, highlighting the impact of intensified market competition and changing consumer trends, suggesting a need for strategic market adjustments.
- Future Guidance: The company provided full-year EPS guidance of $11.20 to $11.90 and revenue expectations between $8.91 billion and $9.09 billion, demonstrating management's confidence in future performance despite current challenges.
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- Historical Performance Review: Over the past two years, Constellation Brands has beaten EPS estimates 75% of the time and revenue estimates 50% of the time, suggesting a degree of capability to exceed expectations, despite current challenges.
- Expectation Revision Dynamics: In the last three months, EPS estimates have seen 2 upward revisions and 13 downward revisions, while revenue estimates have experienced 5 upward and 5 downward revisions, indicating analyst divergence on the company's future performance, which may affect investor confidence.
- Market Analysis and Ratings: TD Cowen upgraded Constellation Brands, suggesting the company may benefit from multiple tailwinds during the upcoming World Cup, although consumer weakness presents a backdrop where buying opportunities still exist.
See More
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- Quarterly Dividend Announcement: Constellation Brands has declared a quarterly dividend of $1.03 per share, consistent with previous distributions, demonstrating the company's stability and commitment to shareholder returns in the current economic climate.
- Dividend Yield: The forward yield of 2.96% reflects the company's ability to remain attractive to investors, even amidst a value-conscious consumer backdrop, thereby enhancing investor confidence.
- Payment Schedule: The dividend will be payable on August 13, with a record date of July 30 and an ex-dividend date also set for July 30, ensuring shareholders receive their returns promptly.
- Market Share Growth: Constellation Brands has successfully gained market share in a value-conscious consumer environment, indicating that its products continue to resonate well in a competitive market landscape.
See More
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- Disappointing Earnings Report: Nike reported a full-year diluted earnings per share of $2.10, reflecting only a 3% decline year-over-year, but heavily reliant on a $986 million tariff refund, indicating vulnerability in profitability, with the CEO admitting that sportswear remains lagging, particularly in Greater China where sales have notably declined.
- Negative Market Reaction: Following the earnings report, Nike's stock price quickly dipped 10% before stabilizing at around a 3% decline ahead of market open, reflecting investor concerns regarding the company's future growth potential, especially in the underperforming sportswear and Jordan streetwear segments.
- Challenges in Growth Areas: Despite achieving five consecutive quarters of double-digit growth in its running business, adding approximately $1 billion in revenue, the CEO emphasized that overall performance still falls short of expectations, particularly with ongoing sales declines in Greater China impacting the company's strategic positioning.
- Uncertain Future Outlook: Management did not provide specific guidance for fiscal 2027, anticipating further revenue declines in the first half, which raises doubts among investors about Nike's long-term development strategy, especially amid intensifying global market competition.
See More
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- Nike Sales Decline: Nike reported a 12% sales decline in the Greater China market, which, despite an earnings and revenue beat in its fiscal fourth-quarter report, raises concerns about future performance in this critical region.
- Constellation Brands Earnings Beat: Constellation Brands reported first-quarter earnings of $3.43 per share, exceeding analysts' expectations of $3.20, with revenue also surpassing forecasts, indicating resilience in a competitive market.
- Shutterstock and Getty Merger Failure: Getty's cancellation of its proposed merger with Shutterstock due to U.K. regulatory demands led to a sharp decline in Shutterstock's stock by over 30%, while Getty fell 4%, highlighting the impact of regulatory environments on M&A activities.
- Kroger Acquires Giant Eagle: Kroger announced its acquisition of food and pharmacy retailer Giant Eagle for $1.65 billion, resulting in a 2% drop in its stock price; however, the CEO emphasized that this move will expand the company's reach into attractive adjacent markets.
See More
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- Earnings Growth: Constellation Brands reported a first-quarter profit of $653.8 million, translating to $3.79 per share, which marks a significant increase from last year's $516.1 million and $2.90 per share, indicating improved profitability.
- Adjusted Earnings: Excluding items, the adjusted earnings stood at $590.6 million or $3.43 per share, showcasing strong earnings capability despite a revenue decline, reflecting effective cost management strategies.
- Revenue Decline: The first-quarter revenue fell to $2.43 billion, down 3.2% from $2.51 billion last year, highlighting the impact of intensified market competition and changing consumer trends, suggesting a need for strategic market adjustments.
- Future Guidance: The company provided full-year EPS guidance of $11.20 to $11.90 and revenue expectations between $8.91 billion and $9.09 billion, demonstrating management's confidence in future performance despite current challenges.
See More
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- Constellation Brands Earnings: Constellation Brands (STZ) closed down 0.4% but gained over 3% in after-hours trading despite reporting a 3.6% year-over-year revenue decline in its fiscal Q1 earnings, while also revising its fiscal 2027 EPS outlook to $11.50-$12.20.
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