Molson Coors Goes Flat After Quarterly Earnings Miss

Shares of beer and alcoholic beverage giant Molson Coors fizzle after the company reports earnings far below analysts' forecasts amid what it calls a 'challenging' spring, when weather kept consumers from cracking open cold ones.
By M. Corey Goldman ,

Shares of beer and alcoholic beverage giant Molson Coors (TAP) - Get Report fizzled on Wednesday after the company reported earnings far below analysts' forecasts amid what it called a "challenging" spring, when weather kept consumers from cracking open cold ones.

The company posted second-quarter net income of $329.4 million, or $1.52 a share, vs. $424.1 million, or $1.96 a share, in the comparable year-earlier period. Analysts polled by FactSet had been expecting earnings of $1.67 a share.

Sales came in at $2.95 billion for the quarter, down from $3.01 billion a year ago and below analysts' forecasts of $3 billion.

"After a solid start in the first four months of the year, May and June were challenging reflecting unfavorable weather and weak industry demand across our major geographies, resulting in a disappointing volume performance in the quarter," CEO Mark Hunter said in a statement.

However, the company continues to focus on boosting sales as well as rolling out new products that it expects will help its top-line growth, including the pending launch of its Truss cannabis-infused non-alcoholic beverage portfolio in Canada later this year, Hunter said.

Separately, the company announced its board approved boosting its quarterly dividend to 57 cents a share, "in line with our ongoing target of 20% to 25% of prior fiscal year underlying (earnings before income, taxes, depreciation and amortization) EBITDA," the company said.

Shares of Molson Coors were down more than 8% in early trading, falling $4.85 to $52.07 on the New York Stock Exchange.

Save 76% with our Summer Break Sale. Subscribe to our premium site Real Money and become a smarter investor! Click here today to sign up!

Loading ...