Molson Coors (TAP) Beats Q3 Earnings Estimates, Stock Down
Zacks Investment Research | Oct 29, 2019 11:01PM ET
Molson Coors Brewing Company (NYSE:TAP) reported mixed third-quarter 2019 results, wherein the top line missed estimates but the bottom line beat the same. However, adjusted earnings and sales declined on a year-over-year basis. This marked a beat after two straight earnings miss and the fourth consecutive negative sales surprise. The top line was impacted by soft volume across all segments, owing to a challenging industry backdrop.
Further, the company announced a revitalization plan to achieve sustainable top-line growth by improving efficiency and unlocking resources to reinvest in business opportunities.
Shares of Molson Coors declined nearly 2.9% in the pre-market trading session. However, the Zacks Rank #3 (Hold) company’s shares have gained 1.3% in the past three months against the industry ’s decline of 15.9%.
Delving Deeper
Molson Coors’ underlying adjusted earnings of $1.48 per share declined 19.6% year over year but beat the Zacks Consensus Estimate of $1.46. The decline was attributed to soft volume, inflation, higher underlying effective tax rate and cycling a favorable resolution of a vendor dispute in the United States. This was partly negated by positive global pricing and mix, cost savings, and reduced incentive compensation, restructuring charges and marketing expenses.
Molson Coors Brewing Company Price, Consensus and EPS Surprise
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