Modelo Beer will be on display on the shelf of the Safeway store in San Anselmo, California on October 6, 2025.
Justin Sullivan | Getty Images
Modelo Owner Constellation Brand It hit the lines above and below Monday’s second quarter revenue report, repeatedly falling year-round guidance due to macroeconomic headwinds.
The company’s shares rose about 3% in expanded transactions.
Here’s how the company achieved its performance in the second quarter compared to what Wall Street had expected based on an analyst survey by LSEG:
Earnings per share: $3.63 adjusted vs. $3.38 forecast: $2.48 billion vs. $2.466 billion
During the period ending August 31, the company reported net profit of $466 million ($2.65 per share) compared to a loss of $1.2 billion ($6.59) over the previous year. Excluding the costs of restructuring and other items, the brewers reported profits of $3.63 per share.
Constellation’s net sales fell 15% from the same period last year to $2.48 billion, with the company’s operating profit margin down 200 basis points, partly due to aluminum tariffs.
“While we continue to navigate a challenging socioeconomic environment that has weakened consumer demand, our team continues to focus on opposing strategic goals, including distribution acquisition, disciplined innovation, disciplined innovation behind brands, and investment.
In September, Constellation announced it would cut its fiscal year guidance due to a “challenging macroeconomic environment.” It reduced its earnings per share outlook from the range of $11.30 to $11.60, and reduced it from $12.60 to $12.90, reaffirming that outlook in Monday’s report.
The company also repeated its previous estimates of organic net sales declined from 4% to 6% for fiscal year 2026, falling from previous 1% growth to a 2% decline.
Constellation previously identified a trend in declining demand from Hispanic consumers. He says this is due to concerns about President Donald Trump’s immigration policies and potential unemployment.
Constellation executives will call analysts tomorrow at 8am.
