Molson Coors (TAP) Stock Up on Earnings Beat
NEW YORK (TheStreet) -- Molson Coors Brewing Co. (TAP) - Get Report stock is rising 0.65% to $87.99 in early morning trading on Thursday after the company reported better than expected financial results for the 2015 third quarter.
Before the market open this morning, the brewer reported earnings of $1.40 per share for the quarter ended September 30, beating estimates by 12 cents.
Revenue declined 12.9% to $1.02 billion, just above estimates of $1.01 billion as the company faced unfavorable exchange rates.
Earnings were negatively affected by an increase in brand investments and the termination of the Canadian Miller brand agreement and the U.K. brewing contracts for Heineken (HINKY) and GrupoModelo (GPMCY) beers.
"In the third quarter, our worldwide volume increased 0.7%, driven by strong growth in Europe and international," CEO Mark Hunter said in a statement. "We invested more in our brands in all of our businesses except international, where lower marketing was primarily due to the substantial restructuring of our China business this year."
Separately, TheStreet Ratings team rates MOLSON COORS BREWING CO as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:
We rate MOLSON COORS BREWING CO (TAP) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its expanding profit margins, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity.
You can view the full analysis from the report here: TAP
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