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Here's How Molson Coors (TAP) Looks Just Ahead of Q4 Earnings
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Molson Coors Beverage Company (TAP - Free Report) is expected to register top-line growth when it reports fourth-quarter 2021 earnings on Feb 23. The Zacks Consensus Estimate for the company’s fourth-quarter revenues is pegged at $2.57 billion, suggesting 12.1% growth from the prior-year period’s reported figure. The consensus mark for 2021 revenues is pinned at $10.23 billion, indicating growth of 6% from the prior-year reported figure.
For fourth-quarter earnings, the consensus mark is pegged at 90 cents per share, suggesting growth of 125% from the year-ago quarter. The consensus mark has been unchanged in the past 30 days. The consensus mark for 2021 earnings is pegged at $4.20 per share, indicating growth of 7.1% from the prior-year reported figure.
In the last reported quarter, the leading alcohol company delivered an earnings surprise of 12.9%. It recorded an earnings surprise of 22.1%, on average, in the trailing four quarters.
Molson Coors Beverage Company Price and EPS Surprise
Molson Coors has been benefiting from investments, partnerships and product launches, which have been part of its revitalization plan. Product innovation, premiumization efforts and strength in iconic core brands also bode well.
The company’s revitalization plan aims at achieving sustainable top-line growth by streamlining the organization and reinvesting resources into its brands and capabilities. As part of this plan, it has been investing in iconic brands and growth opportunities in the above-premium beer space, expanding in adjacencies and beyond beer, and creating digital competencies for commercial functions, supply-chain-related system capabilities and employees. These investments are expected to have aided the company’s fourth-quarter performance. Favorable net pricing and cost savings are also likely to have been key drivers.
On the last reported quarter’s earnings call, management anticipated net sales growth in the mid-single digits at constant currency in 2021. Underlying depreciation and amortization are projected at $800 million.
Solid pricing in North America and Europe, and positive brand and channel mix are likely to have aided sales growth in the fourth quarter. The company’s innovation and premiumization efforts are expected to have led to continued market share growth in the fourth quarter. In a bid to accelerate portfolio premiumization, it has been aggressively growing its above-premium portfolio in the past few years.
However, higher marketing costs related to investments in brands and innovation have been hurting EBITDA, which is expected to have continued in the fourth quarter.
On the last reported quarter’s earnings call, Molson Coors anticipated significant growth in marketing investments through the rest of 2021 to strengthen its core brands and support innovations. It expected fourth-quarter marketing investments to be higher than that reported in fourth-quarter 2019, owing to continued ramping up of supply and commercial pressure.
Inflationary pressures related to higher transportation and packaging materials costs are expected to have continued in 2021. This is likely to have resulted in a higher cost of goods sold (COGS).
On the last reported quarter’s earnings call, the company anticipated inflationary COGS headwinds for 2021. For 2021, management expected underlying EBITDA to remain almost flat year over year at cc. The company expected top-line growth to be offset by continued inflationary cost pressures, largely transportation and packaging materials, including aluminum, and increased marketing investments to deliver against its Revitalization plan.
Zacks Model
Our proven model does not conclusively predict an earnings beat for Molson Coors this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Molson Coors has a Zacks Rank #3 and an Earnings ESP of 0.00%.
Stocks With Favorable Combination
Here are some companies you may want to consider as our model shows that these have the right combination of elements to beat on earnings this reporting cycle:
Lamb Weston (LW - Free Report) currently has an Earnings ESP of +1.70% and a Zacks Rank of 3. The company is likely to register an increase in the top line when it reports third-quarter fiscal 2022 results. The consensus mark for LW’s quarterly revenues is pegged at $971.7 million, which suggests a rise of 8.5% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Lamb Weston’s earnings has moved down by a penny to 44 cents per share in the past seven days. The consensus estimate indicates a 2.2% decline from 45 cents reported in the year-ago quarter.
Grocery Outlet (GO - Free Report) currently has an Earnings ESP of +8.45% and a Zacks Rank of 3. The company is likely to register a decline in the top line when it reports fourth-quarter 2021 numbers. The consensus mark for GO’s quarterly earnings has been unchanged in the past 30 days to 20 cents per share. However, the consensus estimate suggests a 16.7% decline from the year-ago quarter’s reported number.
The Zacks Consensus Estimate for Grocery Outlet’s quarterly revenues is pegged at $774.2 million, which suggests a decline of 4% from the figure reported in the prior-year quarter.
Foot Locker (FL - Free Report) currently has an Earnings ESP of +7.73% and a Zacks Rank of 3. The company is likely to register top-line growth when it reports fourth-quarter fiscal 2021 earnings. The consensus mark for FL’s quarterly revenues is pegged at $235 billion, which suggests 7.35% growth from the figure reported in the prior-year quarter.
The consensus mark for FL’s quarterly earnings has moved up 2.1% in the past 30 days to $1.46 per share. However, the consensus estimate suggests a decline of 5.8% from the year-ago quarter.
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Here's How Molson Coors (TAP) Looks Just Ahead of Q4 Earnings
Molson Coors Beverage Company (TAP - Free Report) is expected to register top-line growth when it reports fourth-quarter 2021 earnings on Feb 23. The Zacks Consensus Estimate for the company’s fourth-quarter revenues is pegged at $2.57 billion, suggesting 12.1% growth from the prior-year period’s reported figure. The consensus mark for 2021 revenues is pinned at $10.23 billion, indicating growth of 6% from the prior-year reported figure.
For fourth-quarter earnings, the consensus mark is pegged at 90 cents per share, suggesting growth of 125% from the year-ago quarter. The consensus mark has been unchanged in the past 30 days. The consensus mark for 2021 earnings is pegged at $4.20 per share, indicating growth of 7.1% from the prior-year reported figure.
In the last reported quarter, the leading alcohol company delivered an earnings surprise of 12.9%. It recorded an earnings surprise of 22.1%, on average, in the trailing four quarters.
Molson Coors Beverage Company Price and EPS Surprise
Molson Coors Beverage Company price-eps-surprise | Molson Coors Beverage Company Quote
Key Factors to Note
Molson Coors has been benefiting from investments, partnerships and product launches, which have been part of its revitalization plan. Product innovation, premiumization efforts and strength in iconic core brands also bode well.
The company’s revitalization plan aims at achieving sustainable top-line growth by streamlining the organization and reinvesting resources into its brands and capabilities. As part of this plan, it has been investing in iconic brands and growth opportunities in the above-premium beer space, expanding in adjacencies and beyond beer, and creating digital competencies for commercial functions, supply-chain-related system capabilities and employees. These investments are expected to have aided the company’s fourth-quarter performance. Favorable net pricing and cost savings are also likely to have been key drivers.
On the last reported quarter’s earnings call, management anticipated net sales growth in the mid-single digits at constant currency in 2021. Underlying depreciation and amortization are projected at $800 million.
Solid pricing in North America and Europe, and positive brand and channel mix are likely to have aided sales growth in the fourth quarter. The company’s innovation and premiumization efforts are expected to have led to continued market share growth in the fourth quarter. In a bid to accelerate portfolio premiumization, it has been aggressively growing its above-premium portfolio in the past few years.
However, higher marketing costs related to investments in brands and innovation have been hurting EBITDA, which is expected to have continued in the fourth quarter.
On the last reported quarter’s earnings call, Molson Coors anticipated significant growth in marketing investments through the rest of 2021 to strengthen its core brands and support innovations. It expected fourth-quarter marketing investments to be higher than that reported in fourth-quarter 2019, owing to continued ramping up of supply and commercial pressure.
Inflationary pressures related to higher transportation and packaging materials costs are expected to have continued in 2021. This is likely to have resulted in a higher cost of goods sold (COGS).
On the last reported quarter’s earnings call, the company anticipated inflationary COGS headwinds for 2021. For 2021, management expected underlying EBITDA to remain almost flat year over year at cc. The company expected top-line growth to be offset by continued inflationary cost pressures, largely transportation and packaging materials, including aluminum, and increased marketing investments to deliver against its Revitalization plan.
Zacks Model
Our proven model does not conclusively predict an earnings beat for Molson Coors this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Molson Coors has a Zacks Rank #3 and an Earnings ESP of 0.00%.
Stocks With Favorable Combination
Here are some companies you may want to consider as our model shows that these have the right combination of elements to beat on earnings this reporting cycle:
Lamb Weston (LW - Free Report) currently has an Earnings ESP of +1.70% and a Zacks Rank of 3. The company is likely to register an increase in the top line when it reports third-quarter fiscal 2022 results. The consensus mark for LW’s quarterly revenues is pegged at $971.7 million, which suggests a rise of 8.5% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Lamb Weston’s earnings has moved down by a penny to 44 cents per share in the past seven days. The consensus estimate indicates a 2.2% decline from 45 cents reported in the year-ago quarter.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Grocery Outlet (GO - Free Report) currently has an Earnings ESP of +8.45% and a Zacks Rank of 3. The company is likely to register a decline in the top line when it reports fourth-quarter 2021 numbers. The consensus mark for GO’s quarterly earnings has been unchanged in the past 30 days to 20 cents per share. However, the consensus estimate suggests a 16.7% decline from the year-ago quarter’s reported number.
The Zacks Consensus Estimate for Grocery Outlet’s quarterly revenues is pegged at $774.2 million, which suggests a decline of 4% from the figure reported in the prior-year quarter.
Foot Locker (FL - Free Report) currently has an Earnings ESP of +7.73% and a Zacks Rank of 3. The company is likely to register top-line growth when it reports fourth-quarter fiscal 2021 earnings. The consensus mark for FL’s quarterly revenues is pegged at $235 billion, which suggests 7.35% growth from the figure reported in the prior-year quarter.
The consensus mark for FL’s quarterly earnings has moved up 2.1% in the past 30 days to $1.46 per share. However, the consensus estimate suggests a decline of 5.8% from the year-ago quarter.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.