June 30 (Reuters) - Constellation Brands beat Wall Street estimates for first-quarter profit on Tuesday, driven by demand for its beer brands such as Corona and the Modelo Especial lager.
Shares of the company were up about 3.5% in extended trading.
Even as the broader U.S. alcohol market remains under pressure amid macroeconomic concerns including rising inflation and a spike in gas prices, the beer maker saw a boost in demand, helped by lower prices and more focused marketing.
Analysts at RBC Capital
Markets see the FIFA World Cup and moderation in oil prices as catalysts for demand.
The company had withdrawn its fiscal 2028 outlook in April, citing a volatile operating environment and limited near-term visibility.
Constellation, in the same month, said that under a U.S. government announcement, its products are no longer subject to aluminum tariffs from April 6, easing the margin pressure it faced from President Trump's 50% import tariffs on aluminum.
The company on Tuesday affirmed its fiscal 2027 adjusted profit per share outlook of $11.20 to $11.90.
Constellation's net sales fell 3.3% to $2.43 billion for the quarter ended May 31, compared with analysts' estimates of $2.39 billion, according to data compiled by LSEG.
It reported a quarterly profit of $3.43 per share, beating estimates of $3.20 per share.
The beer segment — which generates the bulk of its revenue — reported a 2% increase in quarterly net sales from a year ago, reaching $2.28 billion.
Its wine and spirits business reported an 8% rise in quarterly organic net sales from the year-ago period.
(Reporting by Neil J Kanatt and Apratim Sarkar in Bengaluru; Editing by Sahal Muhammed)
