USA: Constellation Brands beat quarterly profit expectations although beer sales drop

Constellation Brands beat quarterly profit expectations on October 6 but reported weaker beer sales as pressure on its core Hispanic consumers and softer U.S. demand has weighed on shipments.

The maker of Modelo and Corona posted earnings of $3.63 per share for the second quarter ended August, above analysts� estimates of $3.48.

Revenue slipped 2% to $2.48 billion, missing expectations of $2.51 billion.

Beer sales fell 7%, driven by an 8.7% drop in shipment volumes as distributors cut inventories and consumers pulled back on spending. Operating margin for the beer unit fell 200 basis points to 40.6% due to higher costs and aluminum tariffs.

Constellation maintained its fiscal 2026 outlook, expecting overall earnings of $11.30 to $11.60 per share. The company continues to forecast beer net sales to decline 2%�4% and operating income to fall 7%�9%.

CEO Bill Newlands said the company remains focused on �distribution gains, disciplined innovation, and investing behind our brands,� adding that Constellation continues to lead the U.S. beer industry in dollar share gains despite the challenging environment.

Shares rose 2.5% in extended trading.