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.
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