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Factors to Note Ahead of Molson Coors' (TAP) Q1 Earnings

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Molson Coors Beverage Company (TAP - Free Report) is slated to release first-quarter 2020 results on Apr 30. In the last reported quarter, the leading alcohol company delivered a positive earnings surprise of 34.2%. Moreover, it delivered a positive earnings surprise of 4.7%, on average, over the trailing four quarters.

The Zacks Consensus Estimate for the company’s first-quarter earnings is pegged at 31 cents, suggesting a 40.4% decline from the year-ago reported figure. The consensus mark has moved downward in the past seven days. For first-quarter revenues, the consensus mark is pegged at $2.23 billion, suggesting 3.4% growth from the prior-year reported figure.

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

The crippling effect of the coronavirus outbreak has been leading to supply-chain disruptions, slowdown in production activities and reduced demand for several commodities. In response to the continued spread of COVID-19, Molson Coors extended the work-from-home facility for employees across North America for an indefinite period. Beverage companies are primarily witnessing declines in on-premise sales as restaurants and bars remain closed due to the virus outbreak. Consequently, Molson Coors expects the coronavirus outbreak to materially affect its results in the to-be-reported quarter.

Further, soft brand volumes across most segments are expected to get reflected in the results. Also, the company is witnessing input cost inflation for a while now due to higher aluminum and freight costs.

However, Molson Coors has been benefiting significantly from the execution of premiumization and cost-saving initiatives as well as the revitalization plan. Gains from restructuring initiatives are likely to have partly reduced overhead costs and aided its bottom-line performance in the to-be-reported quarter.

Zacks Model
 
Our proven model does not 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.

Although Molson Coors has a Zacks Rank #3, an Earnings ESP of -5.44% makes surprise prediction difficult.

Stocks With Favorable Combination

Here are some companies that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat in the upcoming releases:

The Hain Celestial Group, Inc. (HAIN - Free Report) has an Earnings ESP of +9.24% and sports a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

PepsiCo, Inc. (PEP - Free Report) currently has an Earnings ESP of +0.29% and a Zacks Rank #3.

Kellogg Company (K - Free Report) presently has an Earnings ESP of +3.23% and a Zacks Rank #3.

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