Shares of Molson Coors Beverage Company ( NYSE: TAP ) popped over 5% on Tuesday after the company notched stronger than expected Q4 profits.
For the Americo-Canadian beverage giant’s fourth quarter, $1.30 in adjusted earnings per share came in $0.23 above analyst expectations. Meanwhile, a 0.4% increase in revenue to $2.63B only narrowly missed estimates. The company said that net sales per hectoliter on a financial volume basis increased 11.4% in constant currency due to “positive net pricing and favorable sales mix resulting from portfolio premiumization and favorable channel mix” in the quarter.
“We are proud of our accomplishments in 2022 particularly given the challenging inflationary and operating environment,” CFO Tracey Joubert said. “While we expect these challenges to continue to impact us and our industry in 2023, we are issuing guidance for the year that anticipates continued growth while investing prudently in the long term health of the business and returning cash to shareholders.”
Management expects sales to increase by a low single-digit percentage versus 2022. Underlying income before income taxes is expected to mark a low single-digit increase compared to 2022, implying an EPS forecast of about EPS range of $3.90 to $4.10.
Jefferies analyst Kevin Grundy indicated that this guide was better than feared, despite the analyst consensus standing at $4.10. As such, he reiterated a Buy rating and a $69 price target, noting that the low bar for the company on earnings and negative sentiment could help the stock reaction. Bank of America analyst Lauren Lieberman added that the company has been able to hold market share in Miller Lite and Coors Light brands, though she reiterated a Hold-equivalent rating.
Shares of Molson Coors ( TAP ) surged over 8% shortly after Tuesday’s market open before moderating gains to about 4.34% as the trading day progressed.
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Molson Coors stock move higher on bottom-line beat, better than feared guide