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Earnings season is always an exciting time to be an investor, with companies pulling back the curtains and unveiling what’s transpired behind the scenes.
And soon, we’ll be in the thick of the 2023 Q3 cycle, with the period really picking up notable steam when the big banks come out with their results in mid-October.
As of September 29th, S&P 500 earnings are expected to decline by -1.9% in Q3 from the same period last year on +0.9% higher revenues.
In fact, 2023 Q3 is expected to be the last period of declining earnings for the index, with positive growth expected in 2023 Q4 onwards. For a closer look at Q3 earnings, I invite you to view our weekly Earnings Preview -> The Q3 Season Gets Underway
And this week, there are several notable reports scheduled to hit the tape, including those from Conagra Brands (CAG - Free Report) , Constellation Brands (STZ - Free Report) , and Levi Strauss & Co. (LEVI - Free Report) . But how do expectations stack up heading into the releases? Let’s take a closer look.
Constellation Brands
Constellation Brands, a current Zacks Rank #2 (Buy), produces and markets beer, wine, and spirits. The company has many recognized brands, including Corona, Modelo Especial, and SVEDKA Vodka. STZ’s quarterly release will hit the tape on Thursday, October 5th, before the market’s open.
Analysts have shown modest positivity for the quarter to be reported over the last several months, with the $3.38 Zacks Consensus EPS estimate up a slight 1.2% and reflecting an improvement of 6.6% from the year-ago period.
Image Source: Zacks Investment Research
In addition, we expect the company to post $2.9 billion in quarterly revenue, 7.3% higher than year-ago sales of $2.7 billion. Constellation Brands’ latest quarterly results were aided by strength within its beer business, with the company exceeding both consensus earnings and sales expectations.
STZ shares have moved higher post-earnings following back-to-back releases, as illustrated below.
Image Source: Zacks Investment Research
Conagra Brands
Conagra Brands is a leading consumer packaged goods foods company that offers premium edible products with a refined focus on innovation. Analysts have left their earnings expectations unchanged over the last several months, with the $0.60 Zacks Consensus EPS estimate implying year-over-year growth of 5.3%. CAG is expected to deliver quarterly results on Thursday, October 5th, before the market’s open.
The company posted mixed quarterly results in its latest release, beating the Zacks Consensus EPS estimate by 3% but delivering a negative 1.6% revenue surprise. In addition, the company’s adjusted gross margin increased 216 bp from the year-ago period, benefiting from higher organic net sales.
The market wasn’t particularly impressed with the results, as we can see illustrated below.
Image Source: Zacks Investment Research
Regarding the top line, our consensus revenue estimate presently stands at $2.9 billion, roughly 1.7% higher than the year-ago figure. Analysts have been slightly bearish regarding the top line, with the $2.9 billion estimate down 1.7% since July of 2023.
Image Source: Zacks Investment Research
Levi Strauss & Co.
Levi Strauss designs and markets jeans, casual wear, and related accessories for men, women, and children. The company is scheduled to reveal quarterly results on Thursday, October 5th, after the market’s close.
Analysts have been silent for the upcoming release, with the $0.27 Zacks Consensus EPS estimate unchanged over the last several months and reflecting a pullback of 32% year-over-year.
The company has been a consistent earnings performer, exceeding the Zacks Consensus EPS estimate by an average of 15% across its last four releases. In fact, the company has surpassed our consensus earnings estimates in each of its previous ten quarters.
However, as we can see below, momentum hasn’t always followed through post-earnings despite beating bottom line expectations.
Image Source: Zacks Investment Research
In addition, it’s worth noting that the company lowered its FY23 guidance following the latest quarterly release, now expecting revenue growth of 1.5% - 2.5% (compared to 1.5% - 3% previously) and adjusted diluted EPS of $1.10 - $1.20 (compared to $1.30 - $1.40 previously).
Regarding the upcoming release, our consensus revenue estimate is $1.6 billion, 2% higher than the year-ago figure. Below is a chart illustrating the company’s revenue on a quarterly basis.
Image Source: Zacks Investment Research
Bottom Line
Earnings season is just around the corner, with several companies gearing up to unveil quarterly results this week, including Conagra Brands (CAG - Free Report) , Constellation Brands (STZ - Free Report) , and Levi Strauss & Co. (LEVI - Free Report) .
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3 Quarterly Releases to Watch This Week
Earnings season is always an exciting time to be an investor, with companies pulling back the curtains and unveiling what’s transpired behind the scenes.
And soon, we’ll be in the thick of the 2023 Q3 cycle, with the period really picking up notable steam when the big banks come out with their results in mid-October.
As of September 29th, S&P 500 earnings are expected to decline by -1.9% in Q3 from the same period last year on +0.9% higher revenues.
In fact, 2023 Q3 is expected to be the last period of declining earnings for the index, with positive growth expected in 2023 Q4 onwards. For a closer look at Q3 earnings, I invite you to view our weekly Earnings Preview -> The Q3 Season Gets Underway
And this week, there are several notable reports scheduled to hit the tape, including those from Conagra Brands (CAG - Free Report) , Constellation Brands (STZ - Free Report) , and Levi Strauss & Co. (LEVI - Free Report) . But how do expectations stack up heading into the releases? Let’s take a closer look.
Constellation Brands
Constellation Brands, a current Zacks Rank #2 (Buy), produces and markets beer, wine, and spirits. The company has many recognized brands, including Corona, Modelo Especial, and SVEDKA Vodka. STZ’s quarterly release will hit the tape on Thursday, October 5th, before the market’s open.
Analysts have shown modest positivity for the quarter to be reported over the last several months, with the $3.38 Zacks Consensus EPS estimate up a slight 1.2% and reflecting an improvement of 6.6% from the year-ago period.
Image Source: Zacks Investment Research
In addition, we expect the company to post $2.9 billion in quarterly revenue, 7.3% higher than year-ago sales of $2.7 billion. Constellation Brands’ latest quarterly results were aided by strength within its beer business, with the company exceeding both consensus earnings and sales expectations.
STZ shares have moved higher post-earnings following back-to-back releases, as illustrated below.
Image Source: Zacks Investment Research
Conagra Brands
Conagra Brands is a leading consumer packaged goods foods company that offers premium edible products with a refined focus on innovation. Analysts have left their earnings expectations unchanged over the last several months, with the $0.60 Zacks Consensus EPS estimate implying year-over-year growth of 5.3%. CAG is expected to deliver quarterly results on Thursday, October 5th, before the market’s open.
The company posted mixed quarterly results in its latest release, beating the Zacks Consensus EPS estimate by 3% but delivering a negative 1.6% revenue surprise. In addition, the company’s adjusted gross margin increased 216 bp from the year-ago period, benefiting from higher organic net sales.
The market wasn’t particularly impressed with the results, as we can see illustrated below.
Image Source: Zacks Investment Research
Regarding the top line, our consensus revenue estimate presently stands at $2.9 billion, roughly 1.7% higher than the year-ago figure. Analysts have been slightly bearish regarding the top line, with the $2.9 billion estimate down 1.7% since July of 2023.
Image Source: Zacks Investment Research
Levi Strauss & Co.
Levi Strauss designs and markets jeans, casual wear, and related accessories for men, women, and children. The company is scheduled to reveal quarterly results on Thursday, October 5th, after the market’s close.
Analysts have been silent for the upcoming release, with the $0.27 Zacks Consensus EPS estimate unchanged over the last several months and reflecting a pullback of 32% year-over-year.
The company has been a consistent earnings performer, exceeding the Zacks Consensus EPS estimate by an average of 15% across its last four releases. In fact, the company has surpassed our consensus earnings estimates in each of its previous ten quarters.
However, as we can see below, momentum hasn’t always followed through post-earnings despite beating bottom line expectations.
Image Source: Zacks Investment Research
In addition, it’s worth noting that the company lowered its FY23 guidance following the latest quarterly release, now expecting revenue growth of 1.5% - 2.5% (compared to 1.5% - 3% previously) and adjusted diluted EPS of $1.10 - $1.20 (compared to $1.30 - $1.40 previously).
Regarding the upcoming release, our consensus revenue estimate is $1.6 billion, 2% higher than the year-ago figure. Below is a chart illustrating the company’s revenue on a quarterly basis.
Image Source: Zacks Investment Research
Bottom Line
Earnings season is just around the corner, with several companies gearing up to unveil quarterly results this week, including Conagra Brands (CAG - Free Report) , Constellation Brands (STZ - Free Report) , and Levi Strauss & Co. (LEVI - Free Report) .