2023-08-01 10:54:34 ET
Molson Coors Beverage Company ( NYSE: TAP ) reported mixed results for the second quarter. Share fell 6.4% on Tuesday morning.
EPS of $1.78 compared to the average analyst estimate of $1.65 while revenue of $3.27B was worse than the expected $3.29B.
"Our second quarter results represent tremendous growth across our global business, as well as our portfolio. We are proud to report the best quarter of U.S. GAAP reported net sales since the merger of Molson and Coors in 2005,” Chief Executive Officer Gavin Hattersley said in a statement.
The beermaker raised its 2023 key financial guidance metrics to “reflect the continued strength we are seeing in our core brands in the U.S. while remaining mindful of the softness in the beer industry and continued caution around the consumer.”
Management provided no word in their statement on how the Bud Light ( BUD ) backlash may have helped lift sales.
For the full year, TAP expects net sales up by high single-digit increase versus 2022 from previous guidance of a low single-digit increase. Underlying income (loss) before income taxes: 23%-26% increase compared to 2022 from previous guidance of a low single-digit increase.
Free cash flow of $1.2 billion compares to earlier guidance of $1 billion.
"While we remain mindful of the dynamic global macro economic environment and beer industry softness, our robust second quarter performance coupled with the strong foundation we have laid over the last three years, provide us the confidence to significantly raise our 2023 annual guidance,” Chief Financial Officer Tracey Joubert said in a statement. “Our strategy is working, positioning us to deliver top and bottom-line growth in 2023 and beyond."
The stock has two Strong Buy ratings from Wall Street analysts, one Buy, 14 Holds, one Sell and three Strong Sells.
Shares are up 33% so far this year.
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Molson Coors falls as sales miss estimates