Modelo maker slips on earnings miss, gloomy guidance

Constellation Brands slipped a little under 1% in after-hours trading after it missed earnings estimates and gave a gloomy guidance for the rest of the year.

The company reported adjusted earnings per share of $2.90, compared to the $3.31 analysts polled by FactSet were expecting. It also reported $2.5 billion in sales, which is about what analysts were penciling in, but down 6% from the same period last year.

Constellation also said it expects its full-year earnings per share to be between $12.07 and $12.37, below the $12.66 analysts expected. Its fiscal year ends in February.

The company said in its last earnings call that the Trump administration’s tariff threats and immigration policies were weighing on its sales. This was reiterated in executives’ prepared remarks on Tuesday.

Booze companies have found it harder to keep sales up as consumer preferences change. Constellation has been bolstered by sales of Modelo, which has in recent years become the most sold beer in the US. Still, Constellation is down about 25% since the start of the year.