Constellation Brands, the U.S. producer of Modelo and Corona, retracted its previous fiscal 2028 forecast on Wednesday and indicated slightly reduced demand as consumers navigate a swiftly changing macroeconomic landscape.
The company stated it is optimistic about the momentum in the fourth quarter within its beer, wine, and spirits sectors, yet the broader environment suggests persistent uncertainty. Constellation Brands had also earlier selected Nicholas Fink as its new CEO, effective April 13.
“We anticipate that the operating landscape will continue to be dynamic due to the evolving socioeconomic context and limited short-term clarity,” the company expressed in a statement.
Shares of Constellation Brands experienced a slight decline in after-hours trading.
Nonetheless, the company exceeded Wall Street expectations for its fourth quarter and overall fiscal-year performance.
Here’s how the company fared in the fourth quarter in contrast to Wall Street predictions derived from an analyst survey by LSEG:
- Earnings per share: $1.90 per share adjusted vs. $1.72 per share anticipated
- Revenue: $1.92 billion vs. $1.88 billion projected
For the fourth quarter, the company posted net income of $224.7 million, a rebound from a loss of $370.6 million the previous year.
The firm noted that its beer segment remains one of its primary growth drivers, although its total net sales for fiscal 2026 dropped by 3%.
Looking ahead to fiscal 2027, the company forecasts adjusted EPS between $11.20 and $11.90, compared to projections of $12.36 per share. Constellation Brands noted that spending habits across alcohol segments became more “intentional” due to broader economic uncertainties, with overall demand across its categories remaining “muted” for the majority of the year.
“Despite the dynamic operating conditions in fiscal 2026, we maintained our focus on the elements within our control and executed with precision,” stated CEO Bill Newlands.
