Constellation Brands (STZ, $19.80, up $0.14) is set to report 1Q earnings Tuesday before the opening bell. Alcoholic beverage stocks have done well for the year despite a struggling economy and Constellation is expected to post good numbers after reporting a horrible 4Q due to write-downs.

The company’s CEO recently reaffirmed the company’s profit target for this fiscal year and Wall Street expects earnings to increase nearly 20% for 2009. Constellation’s fiscal year for 2009 ends next February which is why they are reporting 1Q earnings when most companies report 2Q earnings in July.

The company’s wine brands include Arbor Mist and Robert Mondavi and there is a difference of opinion on just how strong wine sales have been. Constellation’s joint venture with Crown Imports could pay big dividends as sales of Corona have heated up with the summer months.

However, investor’s aren’t expecting much of a move based on the options activity. The July 20 calls (STZGD, $0.70, up $0.04) have traded about 150 contracts. The July 17.50 puts (STZSW, $0.20, down $0.05) have traded a little over 200 contracts.

Rick Rouse