Case of Modelo, a beer imported from Mexico, are seen for sale at a grocery store in Arlington, Virginia, February 3, 2025, following the announcement of tariffs by US President Donald Trump on important goods from Canada and Mexico.
Saul Loeb | Afp | Getty Images
Constellation Brands on Tuesday reported quarterly earnings and revenue that missed analysts’ estimates as tariffs on aluminum weighed on its profitability.
Still, the brewer reiterated its forecast for fiscal 2026, showing confidence that it can hit its financial targets despite the weaker-than-expected quarterly performance and higher tariffs.
Shares of the company fell more than 1% in extended trading. The stock has shed more than 20% of its value this year, fueled by concerns about how the higher duties imposed by President Donald Trump would affect demand for its beer.
Here’s what the company reported compared with what Wall Street was expecting, based on a survey of analysts by LSEG:
- Earnings per share: $3.22 adjusted vs. $3.31 expected
- Revenue: $2.52 billion vs. $2.55 billion expected
Constellation reported fiscal first-quarter net income of $516.1 million, or $2.90 per share, down from $877 million, or $4.78 per share, a year earlier.
Excluding items, the brewer earned $3.22 per share.
Net sales dropped 5.8% to $2.52 billion.
The report, which covers the three months ended May 31, includes the start of Trump’s tariffs on canned beer imports in early April. He also hiked trade duties on aluminum to 25% in mid-March and to 50% in early June.
Both imported beer and aluminum are crucial to Constellation’s beer business, which accounts for roughly 80% of the company’s overall revenue. Constellation’s beer portfolio only includes Mexican imports, like Corona, Pacifico and Modelo Especial, which overtook Bud Light as the top-selling beer brand in the U.S. two years ago.
