Constellation Stock Flat After Earnings Beat

The company also withheld its 2021 guidance

Deputy Editor
Apr 3, 2020 at 9:34 AM
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Wine and beer producer Constellation Brands, Inc. (NYSE:STZ) surged higher in pre-market trading before eventually falling flat, even after announcing fiscal fourth-quarter earnings of $2.06 cents per share, and $1.9 billion in revenue, beating analysts estimates. The firm said it has plenty of financial flexibility and liquidity to make it through the roiling uncertainty caused by COVID-19, but withheld its fiscal 2021 forecast. At last check, STZ is up 1% at $132.60. 

Like most stocks, it has been a rocky ride on the charts for STZ. The equity bottomed out at $104.28 on March 23, with a subsequent bounce off the area snuffed out by the $149.50 region. For the week, the brewer is looking at a roughly 9.5% dip, and year-to-date, Constellation is down 30.8%. 

Analysts are quiet on STZ this morning, but most are already optimistic over the stock. Eight consider it a "strong buy," compared to just three who call it a "hold," while the consensus 12-month target price of $190.94 is a 45.5% premium to last night's close. 

Echoing this, STZ sports a 50-day call-put volume ratio of 2.85 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This ratio sits higher than all but 1% of readings from the past year, suggesting a long puts have rarely been more popular during the last 12 months. 


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