Modelo beer is displayed on a shelf at a Safeway retailer on Oct. 6, 2025 in San Anselmo, California.
Justin Sullivan | Getty Images
Modelo proprietor Constellation Brands beat on the highest and backside traces in its fiscal second-quarter earnings report on Monday and reiterated its lowered full-year steering as a consequence of macroeconomic headwinds.
Shares of the corporate rose roughly 3% in prolonged buying and selling.
Here’s how the corporate carried out within the second quarter, in contrast with what Wall Street was anticipating primarily based on a survey of analysts by LSEG:
- Earnings per share: $3.63 adjusted vs. $3.38 anticipated
- Revenue: $2.48 billion vs. $2.46 billion anticipated
For the interval ending Aug. 31, the corporate reported web earnings of $466 million, or $2.65 per share, in contrast with a lack of $1.2 billion, or $6.59, the yr prior. Excluding prices for restructuring and different gadgets, the brewer reported earnings of $3.63 per share.
Constellation’s web gross sales dropped 15% from the identical interval final yr to $2.48 billion, and the corporate’s working margin fell 200 foundation factors due partly to aluminum tariffs.
“While we continue to navigate a challenging socioeconomic environment that has dampened consumer demand, our teams remain focused on executing against our strategic objectives, including driving distribution gains, disciplined innovation and investing behind our brands,” CEO Bill Newlands stated in an announcement.
In September, Constellation announced it was slashing its full fiscal yr steering as a consequence of a “challenging macroeconomic environment.” It lower its comparable earnings per share outlook to a spread of $11.30 to $11.60, down from $12.60 to $12.90, and reaffirmed that outlook in Monday’s report.
The firm additionally reiterated its earlier estimate of natural web gross sales falling 4% to six% for fiscal 2026, down from a earlier expectation of 1% development to a 2% decline.
Constellation additionally beforehand recognized a pattern of decrease demand from Hispanic customers, which it stated was brought on by considerations about President Donald Trump‘s immigration insurance policies and potential job losses.
Constellation executives will maintain a name with analysts tomorrow at 8 a.m. ET.