2 Stocks Making Moves After Earnings

Constellation Brands saw a top- and bottom-line beat for its latest quarter

Digital Content Manager
Oct 6, 2022 at 11:25 AM
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Another earnings season is already upon us, and though we're still a few weeks out from the daily deluge of quarterly reports, a few big names are already stepping into the confessional. Beverage bellwether Constellation Brands, Inc. (NYSE:STZ) and spice giant McCormick & Company, Incorporated (NYSE:MKC) both shared their latest fiscal results. Below we'll break down these results, how STZ and MKC are responding, and what could be next for the two stocks. 

Constellation Brands posted fiscal second-quarter profits of $3.17 per share on $2.6 billion in revenue, beating expectations and marking a sharp rise from a year ago. The Corona parent also lifted the lower end of its full-year 2023 earnings forecast, as well as its 2023 sales and operating income outlook for its beer unit. Despite this, STZ is struggling, last seen down 1.8% at $231.67. 

The security has been dancing around the 320-day moving average for a few weeks now, with overhead pressure emerging after a break below here in mid-September. The equity is down 7.1% year-to-date, though it still sports a more than 10% year-over-year lead. 

McCormick stock, on the other hand, is moving higher after its earnings report, last seen up 1.6% at $74.51. The spice company shared third-quarter earnings of 69 cents per share on $1.6 billion in revenue. The former missed analysts' estimates, while the latter topped expectations. The company also reaffirmed its full-year forecast, noting its ability to perform steadily as markets turn volatile. 

The stock hasn't fared as well as Constellation, with shares down 6.2% in the past 12 months, and off 22% in the past year. Plus, the security just hit a fresh two-year low of $71.19 earlier this week on Monday, Oct. 3. However, today's pop has the equity set to close above continual pressure at its 10-day moving average for the first time since mid-August. 

Options activity surrounding both stocks is red hot today. So far, STZ has seen 2,694 calls and 3,006 puts exchanged, which is 10 times the intraday average. The most popular position is the weekly 10/7 222.50-strike put, followed by the 240-strike call in the same series, with positions being bought to open at the former. 

Meanwhile, McCormick's typically quiet options pits have seen 818 calls and 1,244 puts exchanged, which is 10 times what's usually expected at this point. The most popular is the October 70 put, followed by the October 75 call. 

 

 

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