Constellation Brands First Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Constellation Brands, Inc. (NYSE:STZ) will unveil its latest earnings on Friday, June 29, 2012. Constellation Brands is a wine company with operations in the United States, Canada, the United Kingdom, Australia and New Zealand.

Constellation Brands, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for profit of 39 cents per share, no change from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from 49 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 39 cents during the last month. For the year, analysts are projecting net income of $2 per share, a decline of 14.5% from last year.

Past Earnings Performance: Last quarter, the company topped estimates by 0 cents, coming in at profit of 69 cents per share against a mean estimate of net income of 38 cents. The company fell in line with estimates in the third quarter of the last fiscal year.

Investing Insights: Is TV the Next Bullish Catalyst for Apple’s Stock?

A Look Back: In the fourth quarter of the last fiscal year, profit fell 63.2% to $103 million (51 cents a share) from $279.8 million ($1.32 a share) the year earlier, but exceeded analyst expectations. Revenue fell 12.2% to $628.1 million from $715.3 million.

Stock Price Performance: From May 25, 2012 to June 25, 2012, the stock price rose $2.52 (13%), from $19.34 to $21.86. The stock price saw one of its best stretches over the last year between June 11, 2012 and June 19, 2012, when shares rose for seven straight days, increasing 6.3% (+$1.18) over that span. It saw one of its worst periods between July 21, 2011 and August 4, 2011 when shares fell for 11 straight days, dropping 15.5% (-$3.33) over that span.

Analyst Ratings: There are mostly holds on the stock with four of seven analysts surveyed giving that rating.

Key Stats:

On the top line, the company is hoping to use this earnings announcement to snap a string of four-straight quarters of revenue decreases. Revenue fell 19.3% in the first quarter of the last fiscal year, 20% in second quarter of the last fiscal year and 27.5% in the third quarter of the last fiscal year and then fell again in the fourth quarter of the last fiscal year of the last fiscal year.

After experiencing income drops the past two quarters, the company is hoping to use this earnings announcement to rebound. Net income dropped 24.8% in the third quarter of the last fiscal year and then again in the fourth quarter of the last fiscal year.

Wall St. Revenue Expectations: Analysts are projecting a rise of 1.7% in revenue from the year-earlier quarter to $645.5 million.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.7 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term. The company regressed in this liquidity measure from 1.85 in the third quarter of the last fiscal year to the last quarter driven in part by a decrease in current assets. Current assets decreased 6.6% to $2.03 billion while liabilities rose by 1.8% to $1.2 billion.

(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

Don’t Miss These Additional Hot Stories:

How Much Longer Can the Fed Jawbone Markets?

Here’s the ONLY WAY to SAVE the U.S. Middle Class>>

MONSTER: Here’s Why Apple is the NEW Wal-Mart>>

More from The Cheat Sheet