Molson Coors Rises After Beer Maker's Earnings Beat Forecasts

Shares of Molson Coors Brewing Co. (TAP) were up 6% on Wednesday, Oct. 21, after the beer manufacturer beat third-quarter earnings estimates.

The Denver-based company said it earned $1.84 a share, up 34.3% from a year ago,beating the Zacks estimate of $1.57. Net income totaled $338.3 million, up 17.9% from a year ago.

Worldwide net sales increased 1.8% to $2.9 billion, Molson Coors said, driven by positive global net pricing in all segments, higher financial volume in Europe, U.S. and Canada and favorable mix in Europe.

U.S. brand volume dropped 3.3% for the quarter, largely due to lower volume in the premium light segment.

Molson Coors President and CEO Mark Hunter said in a statement that "improving our volume performance in the U.S. is a priority and the first step is to improve our share performance through Coors Light and accelerated premiumization of the portfolio."

Sales-to-wholesalers increased 1.1%, which the company said was due to wholesaler inventories growing "to support further ordering system implementations at our breweries."

This commentary comes from an independent investor or market observer as part of TheStreet guest contributor program. The views expressed are those of the author and do not necessarily represent the views of TheStreet or its management.

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