Constellation Brands Getting Its Buzz Back

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Oct. 2 (Bloomberg) -- D.A. Davidson and Company's Tim Ramey, Trading Advantage's Alan Knuckman and Bloomberg's Julie Hyman preview Constellation barnds earnings on Bloomberg Television's "Street Smart." (Source: Bloomberg)

Walk us through the expectations for this quarter and why it might be better.

Just to give more context on this acquisition, they had a joint venture in the u.s. called crown imports, importing corona beer and the other brands into the united states.

They split the profits 50:50. in addition to that plant that you mentioned, naturally the profits and revenue are going to go up as a result of this.

In terms of what you are looking for in earnings and revenue, analysts looking for net income to rise 32%, again because of the extra revenue from this acquisition.

That said, one analyst said the quarter could be confusing in terms of comparing like to like, year-over-year.

These numbers in the morning, people will be going through to try to suss out the numbers regarding what was comparable one year ago.

This has been one of our favorites for the past two years and we continue to thank the elation $100 stock.

We are very bullish.

One of the points that you have made is that younger people are paying more attention to premium it -- premium brands.

This is an amazing time, the cohort is really interested in premium wines, whiskey, tequila, imported and craft beers.

These are the craft high margin products.

The loyalty is high, the margins are high, this is a operating environment.

Where do you think this stock is heading?

As you said, this will be the first quarter where we get to see the new structure and there will be a lot of moving pieces and we will be confused but i think what we are going to look for is margin decreased in from the new business and we will see, potentially, the beer business that is stellar.

What is your outlook on stocks?

Three years, $100, prices at 170. that is certainly something we will be reviewing tomorrow.

Let's go over to alan nunnelee men, what are you thinking ahead of tomorrow's for or -- tomorrow's report?

The chart, $30 to $60, it has a huge level, so i will not fight the overall trend, just look for the continue carry-on.

A $50 call for april is going to be about $9.50. six months for price development, it is a way to participate in the overall trend and completely reversed the continue, continue, as we all agree there is more drinking going on in congress right now.

We have a story going on about that later as well.

It is up 60%, how much more room does the community think this one has to go?

Reaching $100 by three years, they agree with them on that, so there is optimism, even if you look at the size of it, the other phenomenon that you heard them talking about in terms of the premium brand.

If you look at the forward price to earning, valuation is creeping up.

Wax do you see them making more acquisitions?

They have been very good about buying back stock.

Is that a no?

I think the share back -- the share buyback given that and is something they should consider.

More than high-end brennan --

This text has been automatically generated. It may not be 100% accurate.


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