Shiver Me Timbers! Tariffs Sink Constellation's Treasure!

A Quarter of Woes Aye?

Savvy? Captain Jack Sparrow here reporting on the high seas of… finance. Seems Constellation Brands purveyors of fine grog like Corona and Modelo have hit a bit of a reef. Their quarterly earnings and revenue be missin' the mark like a drunken pirate tryin' to find Tortuga on a moonless night. The whispers say it's them blasted tariffs on aluminum weighin' down their treasure chests.

The Curse of Trump's Tariffs!

President Trump bless his… heart decided to shackle the industry with these tariffs. A 25% levy on aluminum aye and other duties are squeezin' the profits tighter than a kraken's grip. It's like tryin' to sail against the wind – a fool's errand I say! And mark my words the price of grog and freedom will rise if we be not careful.

What the Figures Tell Savvy?

The numbers don't lie mate. Earnings per share be $3.22 when the soothsayers predicted $3.31. Revenue? A measly $2.52 billion against an expected $2.55 billion. It's enough to make a pirate weep into his rum… almost. But fear not Constellation be holdin' steady claimin' they'll still hit their targets in 2026. Confidence they have. Or perhaps… delusion? Only time will tell.

Mexican Imports Under Fire!

Now Constellation be relyin' heavily on their Mexican imports like Corona Pacifico and Modelo Especial – the one that dethroned Bud Light mind you. But with the winds of trade war blowin' even the finest grog can find itself caught in the crossfire. They are after all 'non structural socioeconomic factors' that can make even the most experienced captain lose his way.

Hispanic Consumers Feeling the Pinch

Ah it seems our Hispanic amigos are buyin' less grog due to shall we say political breezes. Approximately half of Constellation's beer sales come from Hispanic consumers. But when the seas are rough even the heartiest sailors tighten their belts and maybe switch to water (perish the thought!). It all makes you wonder does it not why is the rum always gone?

Steady as She Goes?

Constellation be stickin' to their guns forecastin' comparable earnings per share of $12.60 to $12.90 for fiscal 2026. Organic net sales they say will range from a decline of 2% to a rise of 1%. Will they weather the storm? Or will they become another tale told in taverns a cautionary whisper in the salty air? Only time and a bottle of rum will reveal the answer. Now where did I put that compass…?