Earnings Preview: Constellation Brands Inc.

OVERVIEW: Distiller Constellation Brands' 300-plus brands run from jug wines to coveted California reds, beer imports such as Corona and St. Pauli Girl and liquors like Fleischmann's vodka, Skol gin and Black Velvet Canadian whiskey. Constellation is also the world's biggest wine company.

In the past year, sales of both spirits and branded wine have grown. But in its fourth quarter, sales of Corona and organic wine were soft. Constellation Brands imports, markets and sells Corona beers in the U.S.

Analysts have questioned whether a new entrant into the beer mix--Anheuser-Busch Cos. Inc.'s Bud Light Lime--may be affecting the growth of the Corona brand.

Constellation is also subject to the same challenges as other food and beverage companies, namely higher ingredient costs and a slowdown in consumer spending.

BY THE NUMBERS: The company has not offered any guidance for the quarter. Analysts polled by Thomson Financial expect profit of 31 cents per share on revenue of $906.1 million.

ANALYST TAKE: Morgan Stanley analyst Bill Pecoriello said in a note to investors that Constellation may beat Wall Street's expectations, but he said he is "concerned about the quality of the beat as data suggests that the U.S. wine industry is slowing and Bud Light Lime is negatively impacting the growth of Corona."

Pecoriello said Corona sales appeared to have weakened in May after Anheuser-Busch launched the lime-flavored light brew.

WHAT'S AHEAD: The company forecast a profit range of $1.68 to $1.76 for the 2009 fiscal year. Investors will likely be watching to see whether Constellation can meet that target given consumers' spending cuts.

STOCK PERFORMANCE: Shares edged up 2 percent in the quarter but fell 19 percent during the past 52 weeks.