Jan 7 (Reuters) - Constellation Brands reported third-quarter sales and profit above Wall Street estimates on Wednesday, driven by steady demand for its Modelo Especial and Corona beer brands.
Shares of the company were up 3% in extended trading. They had lost 37% of their value in 2025.
Constellation Brands has benefited from improving demand for popular beers such as Pacifico, Victoria, Corona Sunbrew and Corona Familiar, helped by lower prices and sharper marketing, defying a challenging U.S. alcohol
market backdrop.
Peers such as whiskey maker Brown-Forman also beat sales estimates and reaffirmed its forecast during its latest quarterly results in December.
Constellation Brands' net sales fell 10% to $2.22 billion for the quarter ended November 30, while analysts estimated a 12.4% decline to $2.16 billion, according to data compiled by LSEG.
It reported a quarterly adjusted profit of $3.06 per share, beating estimates of $2.63 per share.
Beer sales declined 1% during the third quarter, owing to a drop in shipment volumes, but they improved from a 7% drop in the prior three-month period.
Alcohol sales have been under pressure as Hispanic consumers pulled back on purchases amid U.S. President Donald Trump's crackdown on immigration, while economic uncertainty and stretched household budgets tempered demand for higher-priced wine and spirits.
Besides, Trump's decision to double tariffs on aluminum imports to 50% from 25% significantly impacted spirits companies such as Constellation Brands as 41% of its Mexican beer packaging relies on aluminum.
The company forecast annual earnings per share to be between $9.72 and $10.02, compared with its prior expectation of $9.86 to $10.16.
It reaffirmed organic net sales decline of 4% to 6% for the year ending February 28, including a 2% to 4% drop in beer sales and a steeper 17% to 20% fall in wine and spirits.
(Reporting by Koyena Das and Savyata Mishra in Bengaluru; Editing by Shilpi Majumdar)
