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3 Ways to Trade Constellation Brands Post-Earnings

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Constellation Brands (STZ) - Get Constellation Brands Inc. Report released earnings Thursday. 

Constellation said comparable earnings for the three months ending in February, the company's fiscal fourth quarter, came in at $1.84 per share, down 3.15% from the same period last year but firmly ahead of the Street consensus forecast of $1.72 per share. Group sales, Constellation said, rose 2% to $1.797 billion, again beating analysts' forecasts of $1.73 billion.

Looking into the 2020 fiscal year, Constellation said its sees comparable earnings in the region of $8.50 to $8.80 per share, with operating income from its beer division rising between 7% and 9%. Wine and Spirits, however, will likely see net sales declines of around 25% to 30% with a larger decline in operating income of between 30% and 35%, Constellation said.

The earnings report came after the company announced late Wednesday that it would sell a portfolio of 30 lower-priced wine and spirit brands to E. & J. Gallo Winery for around $1.7 billion as it continues to shift towards higher-end labels and cannabis-infused products.

Real Money's Stephen Guilfoyle broke down the three things that investors should keep an eye on with Constellation and he also came up with three trades for investors looking to get in--or out--of Constellation.

Read more from Guilfoyle over on TheStreet's sister site, Real Money.

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