Shares of Corona beer maker Constellation Brands ( NYSE:STZ ) slid 12.46% after release its third-quarter report. Sales were reported at $2.46 billion, no growth compared to last year's third quarter results, and the sales were also below consensus expectation of $2.53 billion.

The consensus estimate for net income for the quarter was $793 million, however STZ's actual reported net income was only $616 million.

Please note, while the company's earnings and revenues did not meet the expectations of most analysts, net income and EPS grew significantly at 21% and 23% respectively. The growth of net income is primarily due to strict efficiency from pricing cost strategies, streamlined operations and rising sales from some of its brands such as Modelo Especial and Pacifico .

The beermaker also declared a quarterly cash dividend distribution of $1.01 per share.

For fiscal year 2025, STZ provided a cautious outlook by lowering its net sales growth forecast to 2%-5% from previously 4%-6%. The EPS guidance also adjusted to $13.40 - $13.80 from $13.60 - $13.80.

STZ CEO Bill Newlands said, While we continue to face the subdued spend and value seeking behaviors that emerged among legal drinking age consumers in Q2, our Beer Business delivered a sequential increase in our depletions growth rate in Q3.

There has been a shift in consumer preference showed by robust growth from beer segment while at the same time weak demand from the wine and spirit segment happen.

This article first appeared on GuruFocus .