Revenues on the Rise
Molson Coors Beverage Company has projected a surge in top-line growth for its upcoming fourth-quarter 2023 earnings report on Feb 13. Analysts’ average revenue estimate stands at $2.8 billion for the fourth quarter, marking a 5.4% increase from the previous year’s equivalent figure.
Despite a decrease in the consensus earnings estimate by a penny to $1.12 per share over the past 30 days, this figure still implies a 13.9% decline from last year.
Last quarter, Molson Coors exceeded earnings predictions by 25.5%. On average, it surpassed earnings estimates by 41.3% over the previous four quarters.
Factors to Watch
Molson Coors is reaping the rewards of strong brand performance and growth across its business units. Innovations and a focus on premium products have propelled market share gains. Coors Light and Miller Lite’s sustained popularity in the U.S. beer market is expected to elevate TAP’s fourth-quarter revenues.
The company’s pricing strategies have been instrumental in combating inflationary pressures, resulting in favorable pricing and sales mix. Management’s optimism stems from the recovery of the U.S. beer market, robust brand volume growth, and improved pricing in global markets, primarily Canada.
The company’s fourth-quarter brand volume estimate stands at 19.81 million, up from 18.74 million in the prior-year period. Revenue estimates are at $2.2 billion for the Americas and $558 million for EMEA & APAC.
Molson Coors has been steadfast in its goals of sustainable growth, allocating resources to fortify its brands, expand beyond beer, and digitalize its commercial functions and supply chain. These efforts are expected to translate into fourth-quarter revenue growth, buoyed by the company’s cost-saving initiative.
Notably, Molson Coors is evolving its product portfolio to capitalize on growth opportunities. Its above-premium portfolio is outperforming the U.S. economy portfolio, driven by the rapid expansion of hard seltzers and the successful launch of Simply Spiked Lemonade, coupled with the enduring popularity of Blue Moon and Peroni’s.
However, the company is contending with cost inflation from materials and manufacturing expenses, compounded by an unfavorable mix. Notably, management foresees continued inflationary impact on costs and elevated marketing and people-related expenses.
Zacks Model Predictions
Zacks’ model foresees a positive earnings forecast for Molson Coors, given the combination of a positive Earnings ESP, and its Zacks Rank #2. The Earnings ESP currently stands at +2.72%.
Other Stocks to Note
Meanwhile, other companies that could exceed earnings expectations include Coca-Cola, Dutch Bros, and Monster Beverage.
Coca-Cola’s Earnings ESP is +0.70% while the Zacks Rank #3 implies potential growth in its upcoming quarter.
Dutch Bros anticipates strong performance with its Earnings ESP at +9.38% and a Zacks Rank #3. Its current revenue estimate stands at $254.8 million, marking a 26.3% increase from the prior-year period.
Monster Beverage, with an Earnings ESP of +1.65% and a Zacks Rank #3, is expected to witness both top- and bottom-line growth in the upcoming quarter. Revenue estimates indicate a 15.9% rise from the prior-year period.
For a comprehensive list of potential profitable stocks, see Zacks #1 Rank stocks here.
Biotech Company on the Brink of a Breakthrough, With Potential for Explosive Growth
In the fast-paced world of the stock market, investors are constantly on the lookout for the next big thing that will send their favorite stock skyrocketing by 100% or more in the months to come. From among a select group of five, Director of Research Sheraz Mian has hand-picked a company that he believes has the most explosive upside of all.
An Innovative Player in Biotechnology
This company has been credited with a “watershed medical breakthrough” and is actively developing a bustling pipeline of other projects that could make a significant difference for patients suffering from diseases involving the liver, lungs, and blood. This potential investment opportunity is emerging from a bear market slump, making it a timely catch for savvy investors.
Rising Star in the Making
It’s worth noting that this company has the potential to match or even surpass the impressive success of recent stocks that have doubled in value, such as the Boston Beer Company, which shot up by 143.0% in little more than nine months, as well as NVIDIA, which experienced a remarkable surge of 175.9% in just one year.
Free: See Our Top Stock And 4 Runners Up
CocaCola Company (The) (KO) : Free Stock Analysis Report
Molson Coors Beverage Company (TAP) : Free Stock Analysis Report
Monster Beverage Corporation (MNST) : Free Stock Analysis Report
Dutch Bros Inc. (BROS) : Free Stock Analysis Report
Keeping a Close Watch on Market Trends
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
