Modelo Parent Constellation Brands' Stock Slides on Soft Outlook, Citing Tariff Concerns

2 months ago 16

Nisha Gopalan

Thu, Apr 10, 2025, 6:14 AM 2 min read

Constellation Brands shares slid successful premarket trading Thursday, a time aft the alcoholic drinks shaper posted a brushed outlook for the afloat twelvemonth and announced plans to merchantability immoderate of its lower-cost vino brands.
The company, which imports Corona and Modelo beers from Mexico, besides lowered its outlook for fiscal years 2026 to 2028, citing "the anticipated impact" of tariffs.
Constellation shares person mislaid adjacent to a 3rd of their worth successful the past 12 months done Wednesday.

Constellation Brands (STZ) shares slid successful premarket trading Thursday, a time aft the alcoholic drinks shaper posted a brushed outlook for the afloat year. The company, which imports Corona and Modelo beers from Mexico, besides announced plans to merchantability immoderate of its lower-cost vino brands.

For fiscal 2026, Constellation projected adjusted net per stock (EPS) of $12.60 to $12.90, beneath the statement from analysts surveyed by Visible Alpha. The institution besides slashed its endeavor nett income projection to a diminution of 2% to a emergence of 1%. Previously, it had projected an summation of 2% to 4%. It besides trimmed its fiscal 2027 to 2028 forecasts.

Those lowered projections, Constellation said, reflects "the anticipated impact" of the reciprocal tariffs announced connected April 2 arsenic good arsenic those against Canada connected March 4.

Those changes to its outlook came arsenic Constellation posted fourth-quarter adjusted EPS of $2.63 connected nett income of $2.16 billion, up of analysts' estimates.

The institution besides said that arsenic portion of a multi-year restructuring, it is besides selling immoderate of its lower-cost vino brands. It is keeping those brands “predominantly priced $15 and above” specified arsenic Robert Mondavi Winery and Kim Crawford.

Constellation shares were down adjacent to 5% successful premarket trading. They've mislaid adjacent to a 3rd of their worth successful the past 12 months done Wednesday.

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