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Molson Coors (TAP) Sees Pricing Gains: Will Q4 Earnings Beat?
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Molson Coors Beverage Company (TAP - Free Report) is expected to register top-line growth when it reports fourth-quarter 2023 earnings on Feb 13. The Zacks Consensus Estimate for the company’s fourth-quarter revenues is pegged at $2.8 billion, suggesting 5.4% growth from the prior-year period’s reported figure.
The consensus mark for earnings has moved down by a penny in the past 30 days to $1.12 per share. It suggests a decline of 13.9% from the year-ago reported figure.
In the last reported quarter, this leading alcohol company delivered an earnings surprise of 25.5%. It recorded an earnings surprise of 41.3%, on average, in the trailing four quarters.
Molson Coors Beverage Company Price and EPS Surprise
Molson Coors has been benefiting from brand strength as well as solid performances across its portfolio and business units. Market share gains through innovation and premiumization have also been driving performance. Continued momentum in Coors Light and Miller Lite in the United States is expected to have aided TAP’s top line in the to-be-reported quarter.
Additionally, the company’s top line is expected to have benefited from its pricing actions, which have been undertaken to overcome the inflationary environment. Its sales are likely to have benefited from favorable price and sales mix, as well as brand and financial volume growth in the fourth quarter.
On the last reported quarter’s earnings call, management indicated that it expects strong top-line growth in the quarters ahead, driven by the recovery in the U.S. beer category, stronger-than-expected brand volume growth and better-than-expected pricing across global markets, particularly Canada. This optimism is likely to get reflected in its fourth-quarter revenues.
The Zacks Consensus Estimate for the company’s fourth-quarter brand volume is pegged at 19.81 million, indicating an increase from 18.74 million reported in the prior-year quarter. The consensus estimate for net sales is $2.2 billion for the Americas and $558 million for EMEA & APAC.
TAP has been on track with its revitalization plan focused on 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 been 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 emphasized that it has been making efforts to change the shape of its product portfolio and expand in growth areas. Its U.S. above-premium portfolio is likely to have witnessed sales growth outpacing its U.S. economy portfolio, driven by the rapid growth of its hard seltzers, the successful launch of Simply Spiked Lemonade and the continued strength in Blue Moon and Peroni’s.
However, the company continues to witness cost inflation with respect to materials and manufacturing expenses, along with an unfavorable mix. Also, softness in the beer industry is concerning.
On the last reported quarter’s earnings call, management continued to anticipate the persistence of inflation impacts on COGS for the fourth quarter. Underlying MG&A expenses are projected to be nearly $100 million higher in the second half than the first half and up about 15% year over year. This will be driven by elevated marketing spending, which is likely to be up around $100 million, coupled with increased people-related costs.
Zacks Model
Our proven model 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 before they’re reported with our Earnings ESP Filter.
Molson Coors currently has a Zacks Rank #2 and an Earnings ESP of +2.72%.
Other Stocks With the Favorable Combination
Here are three other companies that, per our model, have the right combination of elements to post an earnings beat:
Coca-Cola (KO - Free Report) currently has an Earnings ESP of +0.70% and a Zacks Rank #3. The company is expected to register top- and bottom-line growth when it reports fourth-quarter 2023 numbers. The Zacks Consensus Estimate for KO’s quarterly revenues is pegged at $10.6 billion, which suggests growth of 5% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for Coca-Cola’s quarterly earnings has been unchanged in the past 30 days at 48 cents per share. The estimate suggests 6.7% growth from the year-ago reported quarter. KO has delivered an earnings surprise of 5.1%, on average, in the trailing four quarters.
Dutch Bros (BROS - Free Report) currently has an Earnings ESP of +9.38% and a Zacks Rank #3. BROS is anticipated to register top-line growth when it reports fourth-quarter 2023 results. The Zacks Consensus Estimate for Dutch Bros’ quarterly revenues is pegged at $254.8 million, indicating growth of 26.3% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Dutch Bros’ earnings has moved down by a penny in the past 30 days to 2 cents per share. The consensus estimate suggests a 33.3% decline from the prior-year quarter’s reported figure. BROS has delivered an earnings beat of 57.1%, on average, in the trailing four quarters.
Monster Beverage (MNST - Free Report) has an Earnings ESP of +1.65% and a Zacks Rank #3 at present. MNST is likely to register top- and bottom-line growth when it releases fourth-quarter 2023 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $1.8 billion, which suggests growth of 15.9% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Monster Beverage’s quarterly earnings has been unchanged in the past 30 days at 39 cents per share, suggesting growth of 34.5% from the year-ago quarter’s reported number. MNST has delivered an earnings surprise of 1.9%, on average, in the trailing four quarters.
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Molson Coors (TAP) Sees Pricing Gains: Will Q4 Earnings Beat?
Molson Coors Beverage Company (TAP - Free Report) is expected to register top-line growth when it reports fourth-quarter 2023 earnings on Feb 13. The Zacks Consensus Estimate for the company’s fourth-quarter revenues is pegged at $2.8 billion, suggesting 5.4% growth from the prior-year period’s reported figure.
The consensus mark for earnings has moved down by a penny in the past 30 days to $1.12 per share. It suggests a decline of 13.9% from the year-ago reported figure.
In the last reported quarter, this leading alcohol company delivered an earnings surprise of 25.5%. It recorded an earnings surprise of 41.3%, 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 benefiting from brand strength as well as solid performances across its portfolio and business units. Market share gains through innovation and premiumization have also been driving performance. Continued momentum in Coors Light and Miller Lite in the United States is expected to have aided TAP’s top line in the to-be-reported quarter.
Additionally, the company’s top line is expected to have benefited from its pricing actions, which have been undertaken to overcome the inflationary environment. Its sales are likely to have benefited from favorable price and sales mix, as well as brand and financial volume growth in the fourth quarter.
On the last reported quarter’s earnings call, management indicated that it expects strong top-line growth in the quarters ahead, driven by the recovery in the U.S. beer category, stronger-than-expected brand volume growth and better-than-expected pricing across global markets, particularly Canada. This optimism is likely to get reflected in its fourth-quarter revenues.
The Zacks Consensus Estimate for the company’s fourth-quarter brand volume is pegged at 19.81 million, indicating an increase from 18.74 million reported in the prior-year quarter. The consensus estimate for net sales is $2.2 billion for the Americas and $558 million for EMEA & APAC.
TAP has been on track with its revitalization plan focused on 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 been 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 emphasized that it has been making efforts to change the shape of its product portfolio and expand in growth areas. Its U.S. above-premium portfolio is likely to have witnessed sales growth outpacing its U.S. economy portfolio, driven by the rapid growth of its hard seltzers, the successful launch of Simply Spiked Lemonade and the continued strength in Blue Moon and Peroni’s.
However, the company continues to witness cost inflation with respect to materials and manufacturing expenses, along with an unfavorable mix. Also, softness in the beer industry is concerning.
On the last reported quarter’s earnings call, management continued to anticipate the persistence of inflation impacts on COGS for the fourth quarter. Underlying MG&A expenses are projected to be nearly $100 million higher in the second half than the first half and up about 15% year over year. This will be driven by elevated marketing spending, which is likely to be up around $100 million, coupled with increased people-related costs.
Zacks Model
Our proven model 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 before they’re reported with our Earnings ESP Filter.
Molson Coors currently has a Zacks Rank #2 and an Earnings ESP of +2.72%.
Other Stocks With the Favorable Combination
Here are three other companies that, per our model, have the right combination of elements to post an earnings beat:
Coca-Cola (KO - Free Report) currently has an Earnings ESP of +0.70% and a Zacks Rank #3. The company is expected to register top- and bottom-line growth when it reports fourth-quarter 2023 numbers. The Zacks Consensus Estimate for KO’s quarterly revenues is pegged at $10.6 billion, which suggests growth of 5% from the prior-year quarter’s reported figure.
You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Coca-Cola’s quarterly earnings has been unchanged in the past 30 days at 48 cents per share. The estimate suggests 6.7% growth from the year-ago reported quarter. KO has delivered an earnings surprise of 5.1%, on average, in the trailing four quarters.
Dutch Bros (BROS - Free Report) currently has an Earnings ESP of +9.38% and a Zacks Rank #3. BROS is anticipated to register top-line growth when it reports fourth-quarter 2023 results. The Zacks Consensus Estimate for Dutch Bros’ quarterly revenues is pegged at $254.8 million, indicating growth of 26.3% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Dutch Bros’ earnings has moved down by a penny in the past 30 days to 2 cents per share. The consensus estimate suggests a 33.3% decline from the prior-year quarter’s reported figure. BROS has delivered an earnings beat of 57.1%, on average, in the trailing four quarters.
Monster Beverage (MNST - Free Report) has an Earnings ESP of +1.65% and a Zacks Rank #3 at present. MNST is likely to register top- and bottom-line growth when it releases fourth-quarter 2023 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $1.8 billion, which suggests growth of 15.9% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Monster Beverage’s quarterly earnings has been unchanged in the past 30 days at 39 cents per share, suggesting growth of 34.5% from the year-ago quarter’s reported number. MNST has delivered an earnings surprise of 1.9%, on average, in the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.