Modelo Beer Maker Constellation Brands’ Stock Plummets on Lowered Growth Forecast | Global News Avenue

Constellation Brand (streptozotocinShares of the beer, wine and spirits maker tumbled on Friday after it cut its forecast as consumers curb spending.

The company behind brands including Modelo beer and Kim Crawford wine lowered the lower end of its fiscal 2025 outlook Earnings per share (EPS) to a range of $13.40 to $13.80, compared with the previous forecast of $13.60 to $13.80. The company said it expects sales to rise between 2% and 5% this fiscal year compared with its previous forecast. 4% to 6% Increase.

Chief Executive Officer (CEO) Bill Newlands said we are cautiously lowering our growth forecasts due to “uncertainty over when consumers will return to normalized spending in the near term.”

Lower outlook offsets higher-than-expected third-quarter results

The lower outlook offset strong third-quarter results, with Constellation Brands reporting earnings of $3.39 per share and revenue falling 0.5% to $2.64 billion. Both were above expectations.

Beer sales increased 3% to $2.03 billion, and shipments increased 1.6%. Wine and spirits sales fell 14%, weighed down by “weak consumer demand and continued destocking by retailers across most price points in the U.S. wholesale market.”

Constellation Brands, whose shares fell nearly 15% in intraday trading on Friday, has lost more than a quarter of its market value over the past year.