Before the market open today, the beverage company reported earnings of $1.19 per share, surpassing analysts' estimates for $1.14 per share. Revenue of $1.54 billion was slightly higher than Wall Street's forecasts for $1.5 billion.
"I always say, 'Don't chase Constellation Brands after they report a blowout quarter,'" TheStreet's Actions Alerts Plus Portfolio Manager Jim Cramer says in a new video. "And I'm saying it, blowout quarter - don't chase it."
The company reported "humongous" cash flow, Cramer said.
"They have an arsenal of drinks," he added. "They have taken that cash flow and they have the highest quality problem a company can have. They can't produce enough beer to meet demand."
The company raised its dividend by 29% to 40 cents per share of Class A Common Stock and 36 cents per share of Class B Common Stock. Additionally, Constellation announced that it has agreed to acquire The Prisoner Wine Co. brands for $285 million.
Separately, TheStreet Ratings currently has a "Buy" rating on the stock with a letter grade of A+.
The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, expanding profit margins, good cash flow from operations and compelling growth in net income. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles' author.
You can view the full analysis from the report here: STZ