What Affected Constellation Brands’ Margins in Fiscal 1Q18?
Constellation Brands’ (STZ) gross margin expanded to 51.4% in fiscal 1Q18 from 47.1% in fiscal 1Q17.
Constellation Brands (STZ) generated sales of $1.9 billion in fiscal 1Q18, which ended on May 31, 2017.
Constellation Brands’ (STZ) Beer segment accounted for 64% of the company’s net sales in fiscal 1Q18.
Why Food Stocks Aren’t Cooking
So far this year, food stocks have largely disappointed investors, and the outlook for the rest of the year appears no better. Stock prices for food manufacturers have been on a downtrend, underperforming the S&P 500 Index (SPX-INDEX) on a YTD (year-to-date) basis, as the graph below shows. As of July 3, Campbell Soup (CPB), General Mills (GIS), Conagra Brands (CAG), J. M. Smucker (SJM), Kellogg (K), and Kraft Heinz (KHC) have fallen 13.7%, 10.7%, 10.2%, 7.7%, 6.7%, and 3.3%, respectively, YTD. The S&P 500 Index has returned 8.5% during the same period.
On average, cotton futures traded lower week-over-week for the week ended June 23, 2017.
During the week ended June 23, 2017, orange juice futures, or FCOJ-A near-month futures prices, ended in negative territory week-over-week.
Why J.M. Smucker’s Fiscal 1Q18 Margins Could Fall
The J.M. Smucker Company’s (SJM) fiscal 1Q18 margins are expected to fall despite the company’s cost saving measures.
Most of the analysts providing recommendations for J.M. Smucker (SJM) maintain a neutral outlook on the stock.
Wall Street analysts expect J.M. Smucker to report adjusted EPS (earnings per share) of $1.63, down 12.4% YoY (year-over-year).
Analysts’ Recommendations for Walmart Stock after Fiscal 2Q18
Of the 33 analysts covering Walmart stock, 48% maintained a “hold,” 42% recommended a “buy,” and 9% rated it a “sell.”
In fiscal 2Q18, Walmart’s gross margin, based on net sales, contracted 11 basis points to 25%.
Sam’s Club saw sales of $13.7 billion (excluding fuel), up 2.1% year-over-year.
How Analysts View Monster Beverage Stock after 2Q17 Results
After Monster Beverage (MNST) released its 2Q17 results on August 8, 2017, many analysts revised their price targets for the stock.
Monster Beverage (MNST) stock fell 1.1% to $52.03 on August 9, 2017, in reaction to the company’s 2Q17 results.
Monster Beverage (MNST) delivered better gross margins and operating margins in 2Q17. Its gross margin expanded to 64.3% in 2Q17 from 62.6% in 2Q16.
J.P. Morgan Upgrades Sprouts Farmers Market to ‘Overweight’
According to the latest data compiled by Thomson Reuters, Sprouts Farmers Market’ current average target price by 21 Wall Street analysts is $25.81, reflecting an upside of 8%.
SFM’s top line is expected to grow 13%–14% based on its sales comp growth of 1.5%–2.0% and 32 new store openings.
Sprouts Farmers Market (SFM) reported a 14.7% year-over-year increase in sales to $1.2 billion in 2Q17.