Constellation Brands Earnings Preview

Constellation Brands STZ announces its next round of earnings this Wednesday, June 30. Here is Benzinga's everything-that-matters guide for this Wednesday's Q1 earnings announcement.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

Analysts expect Constellation Brands earnings of $2.32 per share. Revenue will likely be around $2.02 billion, according to the consensus estimate. In the same quarter last year, Constellation Brands reported earnings per share of $2.3 on revenue of $1.96 billion.

Why Analyst Estimates And Earnings Surprises Are Important

Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.

The analyst consensus estimate would represent a 0.87% increase in the company's earnings. Revenue would be up 2.9% from the year-ago period. Here is how the company's EPS has stacked up against analyst estimates in the past:

Stock Performance

Over the last 52-week period, shares are up 25.23%. Given that these returns are generally positive, long-term shareholders can be content going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Constellation Brands is scheduled to hold the call at 11:30:00 ET and can be accessed here.