Molson Coors Reports Mixed Earnings, Stock Drops 5%
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 day ago
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Should l Buy TAP?
Source: Fool
- Earnings Performance: Molson Coors reported Q4 earnings of $1.21 per share, exceeding analysts' expectations of $1.15, yet sales fell short, declining 2.7% year-over-year, resulting in a 5% drop in stock price post-report.
- Annual Results: For the full year, Molson Coors posted total sales of $11.1 billion, a 4.2% decline, and reported a loss of $10.75 per share due to a 'non-cash partial goodwill impairment charge', highlighting significant financial pressures.
- Future Outlook: CFO Tracey Joubert warned of rising commodity input costs impacting 2026, with sales expected to remain flat at around $11 billion, while 'underlying' earnings are forecasted to decline by 11% to 15%.
- Cash Flow Status: Despite challenges, Molson Coors anticipates generating approximately $1.1 billion in positive free cash flow this year, translating to a price-to-free cash flow ratio of only 8.7 on its $9.6 billion market cap, indicating growth potential under current valuation.
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Analyst Views on TAP
Wall Street analysts forecast TAP stock price to rise
15 Analyst Rating
5 Buy
9 Hold
1 Sell
Moderate Buy
Current: 48.350
Low
46.00
Averages
52.00
High
72.00
Current: 48.350
Low
46.00
Averages
52.00
High
72.00
About TAP
Molson Coors Beverage Company is a holding company. The Company operates in two segments: Americas and EMEA&APAC. The Americas segment consists of the production, importing, marketing, distribution and sales of its owned brands and partner brands and licensed brands in the United States, Canada and various countries in Latin America. It operates nine primary breweries, three craft breweries and two container operations. It also includes partnership arrangements for the distribution of beer in Ontario and the western provinces of Canada. The EMEA&APAC segment consists of the production, marketing and sales of its primary brands as well as other owned and licensed brands in Bulgaria, Croatia, Czech Republic, Hungary, Montenegro, the Republic of Ireland, Romania, Serbia, the United Kingdom, various other European countries and certain countries within the Middle East, Africa and Asia Pacific regions. It operates approximately 11 primary breweries, four craft breweries and one cidery.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Molson Coors Reports Mixed Earnings, Stock Drops 5%
- Earnings Performance: Molson Coors reported Q4 earnings of $1.21 per share, exceeding analysts' expectations of $1.15, yet sales fell short, declining 2.7% year-over-year, resulting in a 5% drop in stock price post-report.
- Annual Results: For the full year, Molson Coors posted total sales of $11.1 billion, a 4.2% decline, and reported a loss of $10.75 per share due to a 'non-cash partial goodwill impairment charge', highlighting significant financial pressures.
- Future Outlook: CFO Tracey Joubert warned of rising commodity input costs impacting 2026, with sales expected to remain flat at around $11 billion, while 'underlying' earnings are forecasted to decline by 11% to 15%.
- Cash Flow Status: Despite challenges, Molson Coors anticipates generating approximately $1.1 billion in positive free cash flow this year, translating to a price-to-free cash flow ratio of only 8.7 on its $9.6 billion market cap, indicating growth potential under current valuation.
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Molson Coors Reports Mixed Earnings, Stock Drops 5%
- Earnings Performance: Molson Coors reported Q4 earnings of $1.21 per share, exceeding analysts' expectations of $1.15, yet sales fell short, declining 2.7% year-over-year, resulting in a 5% drop in stock price post-report.
- Annual Results: For the full year, Molson Coors posted total sales of $11.1 billion, a 4.2% decline, and reported a loss of $10.75 per share due to a 'non-cash partial goodwill impairment charge', highlighting significant financial pressures.
- Future Outlook: CFO Tracey Joubert warned of rising commodity input costs impacting 2026, with sales expected to remain flat at around $11 billion, while 'underlying' earnings are forecasted to decline by 11% to 15%.
- Cash Flow Status: Despite challenges, Molson Coors anticipates generating approximately $1.1 billion in positive free cash flow this year, translating to a price-to-free cash flow ratio of only 8.7 on its $9.6 billion market cap, indicating growth potential under current valuation.
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Market Dynamics: The article questions whether the current stock market trends represent a genuine rotation or are simply erratic fluctuations akin to a carnival ride.
Personal Reflection: The author expresses regret over their investment choices, likening the experience to regretting a poor food choice at a fair.
See More
Market Dynamics and Investment Opportunities Analysis
- Blue Owl Capital Loan Sales: Blue Owl Capital's loan sales are part of a plan to return capital to investors, and while observers have raised 'canary in the coal mine' warnings regarding mispriced private credit loans, the situation does not appear tragic, potentially offering market opportunities.
- Weak U.S. GDP: The preliminary fourth-quarter U.S. GDP growth came in at just 1.4%, significantly below expectations, with the government shutdown likely dragging on growth, leading to market concerns about future economic recovery challenges.
- Texas Roadhouse Strong Performance: Texas Roadhouse shares rose over 3% in early trading, as the market overlooked a weak fourth quarter due to a strong start in Q1, indicating sustained consumer demand for dining despite ongoing beef inflation challenges.
- Klarna's Disappointing Earnings: Klarna reported a wider-than-expected net loss for the quarter, and its fiscal 2026 outlook fell short across key metrics, prompting JPMorgan and UBS to cut their price targets to $20, reflecting market concerns about its future performance.
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- Market Weakness: The S&P 500 index fell by 0.28%, the Dow Jones Industrial Average decreased by 0.54%, and the Nasdaq 100 index dropped by 0.41%, indicating market concerns over the outlook for artificial intelligence, particularly affecting chipmakers and AI infrastructure stocks.
- Mixed Economic Data: Initial jobless claims in the US fell to 206,000, a 5-week low, indicating a strong labor market; however, the December trade deficit widened to $70.3 billion, exceeding expectations, reflecting uncertainties in economic recovery.
- Shifts in Fed Policy Expectations: Hawkish comments from Fed officials suggest a potential need for interest rate hikes to combat persistent inflation, leading to a more hawkish outlook for future rate paths, which further dampens market sentiment.
- Earnings Season Nearing Conclusion: With over three-quarters of S&P 500 companies reporting, 74% exceeded expectations, and Q4 earnings are projected to grow by 8.4%, demonstrating corporate resilience, yet the market remains cautious about future growth prospects.
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US Stock Market Under Pressure Amid AI Outlook Concerns
- Market Weakness: The S&P 500 index fell by 0.26%, the Dow Jones Industrial Average by 0.28%, and the Nasdaq 100 by 0.34%, reflecting market concerns over the outlook for artificial intelligence, particularly with poor performances from chipmakers and AI infrastructure stocks.
- Mixed Economic Data: Initial jobless claims in the US fell by 23,000 to 206,000, marking a 5-week low and indicating a strong labor market; however, the December trade deficit widened to $70.3 billion, exceeding expectations and suggesting challenges in economic recovery.
- Earnings Season Nearing End: Over 75% of S&P 500 companies have reported earnings, with 75% exceeding expectations, and Q4 earnings growth is projected at 8.4%, marking the tenth consecutive quarter of year-over-year growth, demonstrating resilience in corporate earnings.
- Geopolitical Risks Intensify: WTI crude oil prices rose over 2% to a three-week high due to military buildup in the Middle East, potentially increasing inflationary pressures, which could affect market sentiment and investor confidence.
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US Stocks Decline Amid AI Outlook Concerns
- Market Decline: The S&P 500 Index fell by 0.44%, the Dow Jones by 0.57%, and the Nasdaq 100 by 0.66%, reflecting market concerns over the outlook for artificial intelligence, particularly impacting chipmakers and AI infrastructure stocks.
- Mixed Economic Data: Weekly initial jobless claims dropped to 206,000, a five-week low, indicating a strong labor market; however, the December trade deficit widened to $70.3 billion, exceeding expectations, suggesting economic pressures that could affect market confidence.
- Earnings Season Nearing End: Over 75% of S&P 500 companies have reported earnings, with 75% exceeding expectations, and Q4 earnings growth projected at 8.4%, providing some support for the market, although overall sentiment remains cautious.
- Geopolitical Risks Intensify: WTI crude oil prices rose over 1% to a three-week high due to U.S. military buildup in the Middle East, heightening inflation concerns and potentially increasing expectations for Fed rate hikes.
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