Molson Coors tumbles after earnings fail to hit Wall Street's lowest estimate
- Share's of Molson Coors, one of the world's largest beer brewers, fell by as much as 7% on Wednesday after the company reported second-quarter earnings that fell short of Wall Street's most conservative estimates.
- Earnings-per-share came in at $1.52, narrowly missing the bottom end of Wall Street's range of $1.55 to $1.71.
- The brewer posted a 5.6% drop in worldwide brand volume, which the company partially attributed to challenging market conditions.
- Watch Molson Coors trade live.
Shares of Molson Coors plunged 7% on Wednesday after the brewer reported earnings that failed to meet even Wall Street's lowest target.
Here are the key numbers:
- Earnings per share: $1.52 versus $1.65 expected by analysts
- Revenue: $2.95 billion versus $3.03 billion expected by analysts
- Worldwide beer volume: 24.3 million hectoliters, down 5.5% from last year
Analysts forecasted earnings per share between $1.55 and $1.88, with the average estimate being $1.65. Molson Coors generated $1.52 in earnings per share, attributing the shortfall to declining volume and the struggling beer industry.
"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," Mark Hunter, the chief executive officer of Molson-Coors said in a statement.
Global brand volume fell by 5.6% as the company saw a drop off in every segment which include the US, Canada, Europe, and other international markets such as South America. Overall revenue during the quarter slid 4.4% from the year before to $2.9 billion, missing analyst expectations of $3.02 billion.
A bright spot in the disappointing results was a jump in segment share for the company's Coors Light and Miller Lite brands.
"This was ahead of the newly launched Coors Light "Made to Chill" advertising, which is focused on new drinker recruitment by dramatizing Coors Light's purpose to refresh the spirit through its mountain cold refreshment credentials," Hunter said in the report.
Despite the shaky quarter, the board raised the company's dividend 39% to $0.57 per share.
Molson-Coors was down 7% year-to-date through Tuesday.
