Molson Coors Beverage Company (TAP), headquartered in Chicago, Illinois, is a global brewer specializing in producing, marketing, and selling beer and other beverages, with a market cap of $11.8 billion. The company has a diverse portfolio of iconic brands that serve millions of customers worldwide, operating across North America and Europe. Molson Coors is set to announce its Q3 earnings before the market opens on Thursday, Nov. 7.
Ahead of the event, analysts expect TAP to report a profit of $1.66 per share, down 13.5% from $1.92 in the year-ago quarter. The company has consistently beaten Wall Street's earnings estimates in the last four quarters.
Its adjusted earnings of $1.92 per share for the last quarter surpassed the consensus estimate by 14.3%. An improved price and sales mix, offsetting volume declines and adverse currency impacts drove Molson Coors' Q2 earnings beat.
For fiscal 2024, analysts expect TAP to report EPS of $5.71, up 5.2% from $5.43 in fiscal 2023.
TAP stock is down 8.7% on a YTD basis, underperforming the broader S&P 500 Index's ($SPX) 22.7% gains and the First Trust Nasdaq Food & Beverage ETF (FTXG) 3.1% gain over the same time frame.
TAP stock struggled in 2024, underperforming the broader market. Rising inflation and higher production costs squeezed profit margins, while the company faced stiff competition from craft breweries and non-alcoholic beverage trends.
However, on Sept. 3, defensive consumer durable stocks saw gains despite a broad market downturn. Molson Coors Beverage was a standout, rising over 5%. Also, on Aug. 6, Molson Coors Beverage closed up over 5% after reporting Q2 net sales of $3.25 billion, surpassing the consensus estimate of $3.18 billion.
The consensus opinion on TAP stock is cautious, with an overall “Hold” rating. Of 16 analysts covering the stock, three advise a “Strong Buy” rating, 10 indicate a “Hold,” and three advise “Strong Sell.”
TAP's average analyst price target is $59.78, suggesting a potential upside of 7% from the current levels.
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On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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