All three major U.S. stock indexes closed lower on Monday, with the Nasdaq down 0.72%, the S&P 500 down 0.3% and the Dow Jones down 0.2%. The only sectors to end the day with gains were energy (2.9%), utilities (0.8%) and healthcare (0.4%). All three indices were up less than 1% in Tuesday’s premarket session.
After markets closed on Monday, the Dow’s Nike component topped estimates for earnings and revenue. Shares traded down 2.5% in Tuesday’s premarket due to lower revenue expectations for the August quarter. Even a $3 billion increase (to $18 billion) in share buybacks didn’t completely sway investors.
Trip.com reported a lower than expected loss and revenue was as expected. The stock traded more than 16% after news that the Chinese government eased its COVID-19 quarantine rules. Chinese airline stocks also benefited from this change.
We’ve already previewed four companies on deck to release their quarterly results before markets open on Wednesday: Bed Bath & Beyond, General Mills, Paychex and Schnitzer Steel.
Here’s a look at four companies that are expected to release their quarterly results late Wednesday or early Thursday.
Constellation Brands Inc. (NYSE: STZ) produces, imports and sells beer, wine and spirits in the United States and other countries. With a market capitalization of approximately $46.3 billion, it is the largest publicly traded liquor stock in the country. Stocks have added about 9.7% to their value in the past 12 months, following a surge two weeks ago.
Constellation’s free cash flow over the past four quarters was nearly $1.7 billion, and even though the company recently increased its dividend payout, shareholders would probably like to hear about a better return on their investment. The company releases its results first thing Thursday morning.
Of 24 analysts covering the company, 17 rate the stock as a buy or strong buy and the other seven have holding ratings. At a recent stock price of around $247.40, the upside potential based on a midpoint price target of $272.00 is 9.9%. At the high price target of $305.00, the upside potential is 23.3%.
Analysts expect Constellation to report first-quarter revenue of $2.16 billion, which would increase 2.9% sequentially and 6.4% year-over-year . Adjusted earnings per share (EPS) pegged at $2.52, up 6.5% sequentially and 8.2% year-over-year. For the full fiscal year 2023 ending in February, estimates call for EPS of $11.13, up 9.1%, and revenue of $9.39 billion, up 9.1%. 6.5%.
The stock trades at 22.6 times expected 2023 EPS, 19.7 times estimated 2024 earnings of $12.74 and 17.4 times estimated 2025 earnings of $14.42 per share. The stock’s 52-week range is $207.35-$261.52. Constellation pays an annual dividend of $3.20 (yield of 1.41%). The total shareholder return for the last 12 months is 9.7%.
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