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Molson Coors cuts guidance as Q3 revenue misses estimates

Published 07/11/2024, 10:42 pm
TAP
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GOLDEN, Colo. & MONTRÉAL - Molson Coors (NYSE:TAP) Beverage Company (NYSE:TAP) reported third-quarter earnings that beat analyst expectations, but revenue fell short of estimates, leading the company to reduce its full-year top-line guidance. The stock dropped 1.5% following the announcement.

The beer maker reported adjusted earnings per share of $1.80, surpassing the analyst consensus of $1.67. However, revenue for the quarter came in at $3.04 billion, missing the $3.13 billion estimate. Net sales decreased 7.8% compared to the same period last year.

Molson Coors cited macroeconomic challenges in the U.S. as the reason for lowering its full-year revenue guidance. Despite this, the company reaffirmed its bottom-line growth forecast, narrowing it to the high end for underlying diluted earnings per share.

"While we faced headwinds in the U.S. market, we remain focused on executing our strategy and delivering value to shareholders," said Gavin Hattersley, President and CEO of Molson Coors.

The company's income before income taxes fell 39.1% on a reported basis to $331.4 million. On an underlying basis and in constant currency, income before income taxes decreased by 8.7% to $479.5 million.

Molson Coors continued its commitment to returning cash to shareholders, with dividend payments and share repurchases totaling $153 million during the quarter.

The company's stock movement of -1.5% suggests investors are cautiously digesting the mixed results and revised guidance.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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