Molson Coors Earnings: What To Look For From TAP

Petr Huřťák /
2024/04/29 3:03 am EDT

Beer company Molson Coors (NYSE:TAP) will be reporting results tomorrow morning. Here's what investors should know.

Molson Coors met analysts' revenue expectations last quarter, reporting revenues of $2.79 billion, up 6.1% year on year. It was a mixed quarter for the company, with a miss of analysts' operating margin estimates. On the other hand, EPS slightly topped analysts' EPS expectations on roughly in line volumes and small beat on revenue.

Is Molson Coors a buy or sell going into earnings? Read our full analysis here, it's free.

This quarter, analysts are expecting Molson Coors's revenue to grow 6.8% year on year to $2.50 billion, in line with the 5.9% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.75 per share.

Molson Coors Total Revenue

The analysts covering the company have been growing increasingly bullish about the business heading into the earnings, with revenue estimates seeing six upward revisions over the last thirty days. Molson Coors has missed Wall Street's revenue estimates three times over the last two years.

Looking at Molson Coors's peers in the beverages and alcohol segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Keurig Dr Pepper delivered year-on-year revenue growth of 3.4%, beating analysts' expectations by 1.6%, and Constellation Brands reported revenues up 7.1%, topping Wall Street's consensus estimates by 2%. Keurig Dr Pepper traded up 4.3% following the results while Constellation Brands was down 1%.

Read our full analysis of Keurig Dr Pepper's results here and Constellation Brands's results here.

Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, but the market was optimistic at the end of 2023 due to cooling inflation. The start of 2024 has been a different story as mixed signals have led to market volatility, and while some of the beverages and alcohol stocks have fared somewhat better, they have not been spared, with share price declining 4.3% over the last month. Molson Coors is down 6.4% during the same time and is heading into earnings with an average analyst price target of $68.6 (compared to share price of $63).

Unless you’ve been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefitting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story.