Molson Coors Brewing Company (NYSE:TAP) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 0.82%.
Molson Coors Brewing Company Earnings Cheat Sheet
Results: Adjusted Earnings Per Share increased 8.7% to $1.50 in the quarter versus EPS of $1.38 in the year-earlier quarter.
Revenue: Rose 17.87% to $1.18 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: Molson Coors Brewing Company reported adjusted EPS income of $1.50 per share. By that measure, the company beat the mean analyst estimate of $1.38. It missed the average revenue estimate of $1.23 billion.
Quoting Management: Molson Coors president and chief executive officer Peter Swinburn said, “In the second quarter, Molson Coors delivered double-digit underlying earnings growth – and more than 165 percent growth on a U.S. GAAP basis. This underlying income growth was driven by earnings accretion from the Central Europe acquisition that we completed during June last year and improved financial performance in our Europe and International businesses, along with a lower quarterly tax rate this year. We also generated strong free cash flow and reduced our net debt by $373 million in the quarter. We delivered these results despite weak consumer demand and poor weather across all of our markets. Most of our key brands in core markets gained or held share versus a year ago. Our results also benefited from the introduction of brand and packaging innovations globally and from the strength of our above-premium brands, which gained market share in each of our businesses.”
Key Stats (on next page)…
Revenue increased 42.18% from $828.5 million in the previous quarter. EPS increased 400% from $0.30 in the previous quarter.
Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $1.45 to a profit $1.43. For the current year, the average estimate has moved down from a profit of $3.98 to a profit of $3.90 over the last ninety days.
Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.
(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)