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Factors Likely to Influence Molson Coors' (TAP) Earnings in Q3
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Molson Coors Beverage Company (TAP - Free Report) is expected to register top-line growth when it reports third-quarter 2022 earnings on Nov 1. The Zacks Consensus Estimate for the company’s third-quarter revenues is pegged at $2.86 billion, suggesting 1.3% growth from the prior-year period’s reported figure.
The consensus mark for earnings has declined 1.4% in the past 30 days to $1.36 per share. It suggests a decline of 22.3% from the year-ago quarter reported figure.
In the last reported quarter, this leading alcohol company delivered an earnings surprise of 0.9%. The company recorded an earnings surprise of 16.2%, on average, in the trailing four quarters.
Molson Coors Beverage Company Price and EPS Surprise
Molson Coors has been benefiting from the revitalization plan and the premiumization of its global portfolio. Positive pricing and favorable brand and channel mix, stemming from portfolio premiumization and fewer on-premise channel restrictions, are expected to have aided the company’s third-quarter performance. Strength across its Coors Light and Miller Lite brands, as well as its beyond beer approach, bodes well.
The company’s revitalization plan has been aiming to achieve 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 Molson Coors’ third-quarter performance. Also, the company’s cost-saving program remains 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 in the past few years. The continued strength of the U.S. hard seltzer portfolio, particularly the successful launch of Simply Spiked Lemonade, and strength in Blue Moon and Peroni’s, bodes well. This is likely to have boosted sales of the company’s above-premium beer category in the to-reported quarter.
However, higher marketing investments in core brands, the latest innovations, and increased local sponsorship and events are likely to have led to elevated marketing costs in the third quarter. Also, inflationary pressures related to higher transportation costs are expected to have led to higher cost of goods sold in the quarter under review. Apart from these, global supply-chain disruptions and higher freight costs remain concerning.
The company’s top line is expected to reflect continued impacts from inflationary pressures, a strike at its Quebec brewery and the impacts of the Russia-Ukraine conflict. These factors are expected to have weighed on the company’s volume performance.
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. 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 +1.62% and a Zacks Rank #4 (Sell).
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 deliver an earnings beat.
Clorox (CLX - Free Report) currently has an Earnings ESP of +6.10% and a Zacks Rank #3. CLX is anticipated to register top and bottom-line declines when it reports third-quarter 2022 results. The Zacks Consensus Estimate for Clorox’s quarterly revenues is pegged at $1.69 million, indicating a decline of 6.7% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Clorox’s bottom line has moved down 3.9% in the past 30 days to 73 cents per share. The consensus estimate for CLX suggests a decline of 39.7% from the year-ago quarter’s reported figure. CLX has delivered an earnings beat of 9.3%, on average, in the trailing four quarters.
Kellogg's (K - Free Report) currently has an Earnings ESP of +2.27% and a Zacks Rank #3. K is likely to register top-line growth when it reports the third-quarter 2022 numbers. The Zacks Consensus Estimate for its quarterly revenues is pegged at $3.8 billion, which suggests growth of 4% from the figure reported in the prior-year quarter.
However, the Zacks Consensus Estimate for Kellogg's quarterly earnings has been unchanged in the past 30 days at 96 cents per share, suggesting a decline of 10.1% from the year-ago quarter’s reported number. K has delivered an earnings beat of 13.27%, on average, in the trailing four quarters.
Hershey (HSY - Free Report) currently has an Earnings ESP of +2.02% and a Zacks Rank of 3. The company is expected to register top-line growth when it reports the third-quarter 2022 numbers. The Zacks Consensus Estimate for HSY’s quarterly revenues is pegged at $2.6 billion, which suggests growth of 11% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for Hershey’s quarterly earnings has moved up by a penny in the past seven days to $2.07 per share. However, the consensus estimate for HSY suggests a 1.4% decline from the year-ago reported number. HSY has delivered an earnings beat of 8.7%, on average, in the trailing four quarters.
Image: Bigstock
Factors Likely to Influence Molson Coors' (TAP) Earnings in Q3
Molson Coors Beverage Company (TAP - Free Report) is expected to register top-line growth when it reports third-quarter 2022 earnings on Nov 1. The Zacks Consensus Estimate for the company’s third-quarter revenues is pegged at $2.86 billion, suggesting 1.3% growth from the prior-year period’s reported figure.
The consensus mark for earnings has declined 1.4% in the past 30 days to $1.36 per share. It suggests a decline of 22.3% from the year-ago quarter reported figure.
In the last reported quarter, this leading alcohol company delivered an earnings surprise of 0.9%. The company recorded an earnings surprise of 16.2%, 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 the revitalization plan and the premiumization of its global portfolio. Positive pricing and favorable brand and channel mix, stemming from portfolio premiumization and fewer on-premise channel restrictions, are expected to have aided the company’s third-quarter performance. Strength across its Coors Light and Miller Lite brands, as well as its beyond beer approach, bodes well.
The company’s revitalization plan has been aiming to achieve 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 Molson Coors’ third-quarter performance. Also, the company’s cost-saving program remains 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 in the past few years. The continued strength of the U.S. hard seltzer portfolio, particularly the successful launch of Simply Spiked Lemonade, and strength in Blue Moon and Peroni’s, bodes well. This is likely to have boosted sales of the company’s above-premium beer category in the to-reported quarter.
However, higher marketing investments in core brands, the latest innovations, and increased local sponsorship and events are likely to have led to elevated marketing costs in the third quarter. Also, inflationary pressures related to higher transportation costs are expected to have led to higher cost of goods sold in the quarter under review. Apart from these, global supply-chain disruptions and higher freight costs remain concerning.
The company’s top line is expected to reflect continued impacts from inflationary pressures, a strike at its Quebec brewery and the impacts of the Russia-Ukraine conflict. These factors are expected to have weighed on the company’s volume performance.
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. 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 +1.62% and a Zacks Rank #4 (Sell).
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 deliver an earnings beat.
Clorox (CLX - Free Report) currently has an Earnings ESP of +6.10% and a Zacks Rank #3. CLX is anticipated to register top and bottom-line declines when it reports third-quarter 2022 results. The Zacks Consensus Estimate for Clorox’s quarterly revenues is pegged at $1.69 million, indicating a decline of 6.7% 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 Clorox’s bottom line has moved down 3.9% in the past 30 days to 73 cents per share. The consensus estimate for CLX suggests a decline of 39.7% from the year-ago quarter’s reported figure. CLX has delivered an earnings beat of 9.3%, on average, in the trailing four quarters.
Kellogg's (K - Free Report) currently has an Earnings ESP of +2.27% and a Zacks Rank #3. K is likely to register top-line growth when it reports the third-quarter 2022 numbers. The Zacks Consensus Estimate for its quarterly revenues is pegged at $3.8 billion, which suggests growth of 4% from the figure reported in the prior-year quarter.
However, the Zacks Consensus Estimate for Kellogg's quarterly earnings has been unchanged in the past 30 days at 96 cents per share, suggesting a decline of 10.1% from the year-ago quarter’s reported number. K has delivered an earnings beat of 13.27%, on average, in the trailing four quarters.
Hershey (HSY - Free Report) currently has an Earnings ESP of +2.02% and a Zacks Rank of 3. The company is expected to register top-line growth when it reports the third-quarter 2022 numbers. The Zacks Consensus Estimate for HSY’s quarterly revenues is pegged at $2.6 billion, which suggests growth of 11% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for Hershey’s quarterly earnings has moved up by a penny in the past seven days to $2.07 per share. However, the consensus estimate for HSY suggests a 1.4% decline from the year-ago reported number. HSY has delivered an earnings beat of 8.7%, on average, in the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.