Earnings Preview: Constellation Brands

Constellation Brands Inc., which sells wine, beer and spirits, reports its fiscal fourth- quarter results before the stock market opens Friday.

WHAT TO WATCH FOR: Signs of an uptick in wine and imported beer sales. The pullback in consumer spending, including sluggish sales in bars and restaurants, has crimped demand for the $5-to-$20 wine brands that make up the bulk of its business. The company also seeks to shore up waning sales of high-end beers in its Crown Imports wholesale business joint venture with Mexican brewer Grupo Modelo SA.

Analysts will be looking for any wine-sale hiccups as a revamped distribution network falls into place. They also want to know if winter storm disruptions in the Northeast in late February pushed some shipments into the March-to-May first quarter.

WHY IT MATTERS: Constellation Brands' results could provide insight into the economy and shoppers' spending habits. Based in Victor, N.Y. 20 miles southeast of Rochester, it is the world's biggest winemaker by volume, with about 70 wine brands such as Clos du Bois, Woodbridge by Robert Mondavi, Blackstone and Ravenswood.

Its liquors include Svedka vodka, Paul Masson brandy and Black Velvet Canadian whiskey. It also imports beers such as Corona and Negra Modelo from Mexico, Tsingtao from China and St. Pauli Girl from Germany.

WHAT'S EXPECTED: Analysts polled by Thomson Reuters, whose estimates typically exclude one-time items, expect Constellation Brands to earn 25 cents a share on sales of $733.8 million.

LAST YEAR'S QUARTER: Constellation Brands posted a loss of $1.88 per share on revenue of $735.1 million as it restructured and as holiday season wine sales fell in Britain and Australia.