We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Things to Support Molson Coors' (TAP) Earnings Beat in Q4
Read MoreHide Full Article
Molson Coors Beverage Company (TAP - Free Report) is expected to register top and bottom-line growth when it reports fourth-quarter 2022 earnings on Feb 21. The Zacks Consensus Estimate for the company’s fourth-quarter revenues is pegged at $2.67 billion, suggesting 1.9% growth from the prior-year period’s reported figure.
The consensus mark for earnings has moved up by a penny in the past 30 days to $1.06 per share. It suggests growth of 30.9% from the year-ago reported figure.
The Zacks Consensus Estimate for 2022 earnings is pegged at $3.86, suggesting a decline of 7% from the year-ago quarter’s reported figure. The consensus mark has moved down by a penny in the past seven days. The consensus mark for the company’s 2022 revenues is pegged at $10.74 billion, suggesting 4.5% growth from the prior-year quarter’s reported figure.
In the last reported quarter, this leading alcohol company delivered a negative earnings surprise of 2.9%. The company recorded an earnings surprise of 12.3%, on average, in the trailing four quarters.
Molson Coors Beverage Company Price and EPS Surprise
Molson Coors has been gaining from robust pricing actions, a 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. The company has been on track with increased investments toward core brands and innovations. These factors are expected to have aided Molson Coors’ fourth-quarter performance.
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 fourth-quarter results.
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 get reflected in Molson Coors’ fourth-quarter top line. Also, the company’s cost-saving 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 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.
For 2022, management expects net sales growth in the mid-single digits in constant currency. Underlying EBIT is likely to increase in the high-single digits in constant currency.
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 fourth 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 are likely to have been concerning.
Molson Coors has been witnessing weakened consumer demand across the beer industry in its Central and Eastern European regions. This is mainly due to muted disposable income stemming from inflationary pressure. TAP has been witnessing lower brand and financial volume due to sluggishness in the America segment, owing to lower Canada shipments and the continued impacts of the Québec labor strike.
On the last reported quarter’s earnings call, management expected global inflationary pressures to be a headwind. Also, it expected the impacts of the Russia-Ukraine conflict and consumer inflationary pressures across Central and Eastern European countries to affect its performance.
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 +0.27% and a Zacks Rank #3.
Other Stocks With Favorable Combination
Here are some other companies you may want to consider, as our model shows that these also have the right combination of elements to deliver an earnings beat.
Inter Parfums (IPAR - Free Report) has an Earnings ESP of +13.33% and currently carries a Zacks Rank of 2. The company is likely to register top and bottom-line growth when it reports fourth-quarter 2022 results. The consensus mark for IPAR’s quarterly revenues is pegged at $311.5 million, which suggests 47.8% growth from the figure reported in the prior-year quarter.
The consensus mark for Inter Parfums’ quarterly earnings has moved up by a penny in the past 30 days to 30 cents per share. The consensus estimate for IPAR’s fourth-quarter earnings suggests growth of 850% from the year-ago quarter’s reported figure. IPAR has delivered an earnings beat of 27.8%, on average, in the trailing four quarters.
The J. M. Smucker Co. (SJM - Free Report) currently has an Earnings ESP of +1.94% and a Zacks Rank #3. SJM is likely to register top-line growth when it reports the third-quarter fiscal 2023 numbers. The Zacks Consensus Estimate for its quarterly revenues is pegged at $2.2 billion, which suggests growth of 7.8% from the figure reported in the prior-year quarter.
However, the Zacks Consensus Estimate for J. M. Smucker's quarterly earnings has moved down 0.9% in the past 30 days to $2.14 per share, suggesting a decline of 8.2% from the year-ago quarter’s reported number. SJM has delivered an earnings beat of 18.5%, on average, in the trailing four quarters.
Vital Farms (VITL - Free Report) currently has an Earnings ESP of +80.00% and a Zacks Rank of 3. The company is expected to register top and bottom-line growth when it reports the fourth-quarter 2022 numbers. The Zacks Consensus Estimate for VITL’s quarterly revenues is pegged at $102.5 million, which suggests growth of 32.3% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for Vital Farms’ quarterly earnings has moved up 150% in the past 30 days to 5 cents per share. The consensus estimate for VITL suggests 155.6% growth from a loss of 9 cents reported in the year-ago quarter. VITL has delivered an earnings beat of 58.3%, on average, in the trailing four quarters.
Image: Bigstock
Things to Support Molson Coors' (TAP) Earnings Beat in Q4
Molson Coors Beverage Company (TAP - Free Report) is expected to register top and bottom-line growth when it reports fourth-quarter 2022 earnings on Feb 21. The Zacks Consensus Estimate for the company’s fourth-quarter revenues is pegged at $2.67 billion, suggesting 1.9% growth from the prior-year period’s reported figure.
The consensus mark for earnings has moved up by a penny in the past 30 days to $1.06 per share. It suggests growth of 30.9% from the year-ago reported figure.
The Zacks Consensus Estimate for 2022 earnings is pegged at $3.86, suggesting a decline of 7% from the year-ago quarter’s reported figure. The consensus mark has moved down by a penny in the past seven days. The consensus mark for the company’s 2022 revenues is pegged at $10.74 billion, suggesting 4.5% growth from the prior-year quarter’s reported figure.
In the last reported quarter, this leading alcohol company delivered a negative earnings surprise of 2.9%. The company recorded an earnings surprise of 12.3%, 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 gaining from robust pricing actions, a 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. The company has been on track with increased investments toward core brands and innovations. These factors are expected to have aided Molson Coors’ fourth-quarter performance.
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 fourth-quarter results.
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 get reflected in Molson Coors’ fourth-quarter top line. Also, the company’s cost-saving 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 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.
For 2022, management expects net sales growth in the mid-single digits in constant currency. Underlying EBIT is likely to increase in the high-single digits in constant currency.
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 fourth 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 are likely to have been concerning.
Molson Coors has been witnessing weakened consumer demand across the beer industry in its Central and Eastern European regions. This is mainly due to muted disposable income stemming from inflationary pressure. TAP has been witnessing lower brand and financial volume due to sluggishness in the America segment, owing to lower Canada shipments and the continued impacts of the Québec labor strike.
On the last reported quarter’s earnings call, management expected global inflationary pressures to be a headwind. Also, it expected the impacts of the Russia-Ukraine conflict and consumer inflationary pressures across Central and Eastern European countries to affect its performance.
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 +0.27% and a Zacks Rank #3.
Other Stocks With Favorable Combination
Here are some other companies you may want to consider, as our model shows that these also have the right combination of elements to deliver an earnings beat.
Inter Parfums (IPAR - Free Report) has an Earnings ESP of +13.33% and currently carries a Zacks Rank of 2. The company is likely to register top and bottom-line growth when it reports fourth-quarter 2022 results. The consensus mark for IPAR’s quarterly revenues is pegged at $311.5 million, which suggests 47.8% growth from the figure reported in the prior-year quarter.
You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus mark for Inter Parfums’ quarterly earnings has moved up by a penny in the past 30 days to 30 cents per share. The consensus estimate for IPAR’s fourth-quarter earnings suggests growth of 850% from the year-ago quarter’s reported figure. IPAR has delivered an earnings beat of 27.8%, on average, in the trailing four quarters.
The J. M. Smucker Co. (SJM - Free Report) currently has an Earnings ESP of +1.94% and a Zacks Rank #3. SJM is likely to register top-line growth when it reports the third-quarter fiscal 2023 numbers. The Zacks Consensus Estimate for its quarterly revenues is pegged at $2.2 billion, which suggests growth of 7.8% from the figure reported in the prior-year quarter.
However, the Zacks Consensus Estimate for J. M. Smucker's quarterly earnings has moved down 0.9% in the past 30 days to $2.14 per share, suggesting a decline of 8.2% from the year-ago quarter’s reported number. SJM has delivered an earnings beat of 18.5%, on average, in the trailing four quarters.
Vital Farms (VITL - Free Report) currently has an Earnings ESP of +80.00% and a Zacks Rank of 3. The company is expected to register top and bottom-line growth when it reports the fourth-quarter 2022 numbers. The Zacks Consensus Estimate for VITL’s quarterly revenues is pegged at $102.5 million, which suggests growth of 32.3% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for Vital Farms’ quarterly earnings has moved up 150% in the past 30 days to 5 cents per share. The consensus estimate for VITL suggests 155.6% growth from a loss of 9 cents reported in the year-ago quarter. VITL has delivered an earnings beat of 58.3%, on average, in the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.