Constellation Brands (STZ) has a market cap of $31.8 billion. It rose 2.1% to close at $157.99 per share on January 4, 2017. The stock’s weekly, monthly, and year-to-date (or YTD) price movements were 4.5%, 8.2%, and 3.1%, respectively, on the same day.
STZ is trading 3.5% above its 20-day moving average, 1.3% above its 50-day moving average, and 0.69% below its 200-day moving average.
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On January 4, 2017, Bank of America Merrill Lynch upgraded Constellation Brands’ rating to a “buy” from “neutral” and set the stock’s price target at $175 per share.
Constellation Brands’ performance in fiscal 2Q17
Constellation Brands reported fiscal 2Q17 net sales of $2.0 billion, a rise of 17.6% over $1.7 billion in fiscal 2Q16. The company’s net income, EPS (earnings per share) of its Class A common stock, and EPS of its Class B convertible common stock rose to $358.9 million, $1.75, and $1.61, respectively, in fiscal 2Q17. That compares to $302.4 million, $1.49, and $1.38, respectively, in fiscal 2Q16.
The company reported non-GAAP (generally accepted accounting principles) EPS of $1.77 in fiscal 2Q17, a rise of 13.5% over fiscal 2Q16.
STZ’s cash and cash equivalents and inventories rose 113.4% and 0.19%, respectively, between fiscal 4Q16 and fiscal 2Q17.
Constellation Brands has made the following projections for fiscal 2017:
- net sales growth of the Beer segment of 16.0%–17.0%, including an incremental benefit from its Ballast Point acquisition
- net sales growth of its Wine and Spirits division in the mid-single-digits and operating income growth in the mid- to high-single-digits
- EPS of $6.25–$6.40 on a reported basis and $6.30–$6.45 on a comparable basis
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