Constellation Brands, Inc. shares rose more than 3% in early trading on Thursday morning after the company reported better-than-expected fourth quarter financial results. Revenue rose 8.6% to $1.77 billion – beating consensus estimates by $20 million – while net income of $1.90 per share beat consensus estimates by 16 cents per share. Operating margins were steady at 38%, but high SG&A expenses ate into the results.
The company expects to see full-year earnings per share of between $9.40 and $9.70 – versus a $9.59 consensus estimate – and free cash flow of between $1.2 billion and $1.3 billion. Despite these solid numbers, Susquehanna analysts maintained a cautious stance on Constellation Brands, saying that its share price does not reflect reinvestment costs and political risks. Margin expansion was also below the analyst’s estimate for the period. (See also: Constellation Brands Stock Set to Foam on Beer Sales.)
Constellation Brands shares moved sharply higher after a strong fourth quarter, but traders will be watching these key levels. …read more
Read more here: Will Constellation Brands Stock Break Out From Key Resistance?