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Is Molson Coors (TAP) Slated to Report Earnings Beat in Q2?

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Molson Coors Beverage Company (TAP - Free Report) is expected to register top-line growth when it reports second-quarter 2022 earnings on Aug 2. The Zacks Consensus Estimate for the company’s second-quarter revenues is pegged at $2.98 billion, suggesting 1.19% growth from the prior-year period’s reported figure.

Although the consensus mark for earnings has increased by a penny in the past seven days to $1.18 per share, it suggests a decline of 25.3% from the year-ago quarter reported figure.

In the last reported quarter, the leading alcohol company delivered an earnings surprise of 61.1%. The company recorded an earnings surprise of 19.6%, on average, in the trailing four quarters.

Molson Coors Beverage Company Price and EPS Surprise

 

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 the revitalization plan and the premiumization of its global portfolio. Strength across its Coors Light and Miller Lite brands, as well as its beyond beer approach, bodes well. Lesser on-premise restrictions and the robust performance of flagship brands like Carling have been aiding growth in Europe.

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 the 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.

The above-mentioned investments are expected to have aided the company’s second-quarter performance. Its cost-savings program has been one of the key growth drivers.

TAP has been witnessing strong market share gains, driven by its innovation and premiumization efforts. In a bid to accelerate portfolio premiumization, it has been aggressively growing its above-premium portfolio for the past few years. The continued strength of the U.S. hard seltzer portfolio, particularly Topo Chico Hard Seltzer, along with the solid performance of the above-premium beer category, has been aiding the U.S. above-premium segment.

However, elevated marketing costs related to investments in brands and innovation act as headwinds. On the last reported quarter’s earnings call, management expected a year-over-year double-digit rise in marketing spend for the second quarter.

Also, inflationary pressures related to higher transportation costs are expected to have resulted in a higher cost of goods sold in the quarter under review. Global supply-chain disruptions and higher freight costs remain other concerns.

Zacks Model

Our proven model conclusively predicts 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. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Molson Coors has an Earnings ESP of +3.81% and a Zacks Rank #3.

Other Stocks With the Favorable Combination

Here are some other companies you may want to consider, as our model shows that these too have the right combination of elements to deliver an earnings beat.

Corteva (CTVA - Free Report) has an Earnings ESP of +0.20% and currently sports a Zacks Rank #1. CTVA is anticipated to register top and bottom-line growth when it reports second-quarter 2022 results. The Zacks Consensus Estimate for Corteva’s quarterly revenues is pegged at $6.18 billion, indicating an improvement of 9.8% from the figure reported in the prior-year quarter.

You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Corteva’s bottom line has moved up by a penny in the past 30 days at $1.47 per share. The consensus estimate for CTVA suggests growth of 5% from the year-ago quarter’s reported figure.

Grocery Outlet (GO - Free Report) has an Earnings ESP of +5.62% and currently flaunts a Zacks Rank of 1. The company is expected to register top and bottom-line growth when it reports second-quarter 2022 numbers. The Zacks Consensus Estimate for GO’s quarterly revenues is pegged at $859.6 million, which suggests growth of 10.8% from the prior-year quarter’s reported figure.

The Zacks Consensus Estimate for Grocery Outlet’s quarterly earnings has been unchanged in the past 30 days at 24 cents per share, suggesting a 4.4% increase from the year-ago reported number. GO has delivered an earnings beat of 4.8%, on average, in the trailing four quarters.

Tyson Foods (TSN - Free Report) currently has an Earnings ESP of +5.71% and a Zacks Rank #3. TSN is likely to register top-line growth when it reports the second-quarter 2022 numbers. The Zacks Consensus Estimate for its quarterly revenues is pegged at $13.4 billion, which suggests growth of 7% from the figure reported in the prior-year quarter.

The Zacks Consensus Estimate for Tyson Foods’ quarterly earnings has moved down 2.1% in the past 30 days to $1.88 per share, suggesting a decline of 30.4% from the year-ago quarter’s reported number. TSN has delivered an earnings beat of 33.3%, on average, in the trailing four quarters.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.