Will STZ's Q4 2025 earnings beat forecasts like Q2 2025?
4/4/2025 06:22pm
**Constellation Brands (STZ) is unlikely to beat earnings forecasts in Q4 2025, unlike Q2 2025.** Here's why:
1. **Expected Growth Rate**: The Zacks Consensus Estimate for STZ's fiscal Q4 2025 earnings is $2.29 per share, indicating a 1.3% growth from the previous year's actual. This growth rate is lower than the 11.4% growth expected for the full fiscal year 2025, suggesting that the company's performance may not meet market expectations in Q4 alone.
2. **Recent Performance and Challenges**: STZ's wine and spirits segment has faced headwinds due to shifting consumer preferences, competitive pressures, and operational inefficiencies. These challenges are likely to have a bearing on the company's performance in Q4 2025, as they have affected the company's overall performance.
3. **Analyst Expectations**: Analysts have reduced their EPS estimates for Q4 2025 to $2.39, which is lower than the current consensus estimate. This reduction in estimates suggests that analysts are cautious about STZ's ability to exceed expectations in the upcoming quarter.
4. **Historical Performance**: STZ experienced a negative earnings surprise of 2.7% in its most recent reported quarter, which indicates that the company's actual performance has often fallen short of market expectations. This historical trend suggests that Q4 2025 may not be an exception.
In conclusion, while STZ may have had a strong performance in Q2 2025, the challenges it faces and the analyst expectations for Q4 2025 suggest that the company is unlikely to beat earnings forecasts in that quarter.