Molson Coors (NYSE:TAP), a leading name in beer stocks, saw share prices fall nearly 4% in Tuesday afternoon’s trading. It wasn’t as bad as it was earlier in the day—Tuesday morning saw shares slump as much as 6.4%–but it was still a significant loss nonetheless. It all traces back to Molson Coors’ earnings report, which came out merely half-baked.
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It wasn’t all doom and gloom for Molson Coors. It beat earnings expectations reasonably well, posting earnings per share of $1.78 against analyst expectations looking for $1.65. However, revenue didn’t fare quite so well. The $3.27 billion that Molson Coors brought in faltered against analyst expectations looking for $3.29 billion. A narrow miss—and almost petty when you consider that $3.27 billion represents a 12% increase against the same time last year—but a miss nonetheless.
What’s more, Molson Coors’ outlook is downright rosy. On a constant currency basis, Molson Coors looks for income to increase between 23% and 26% against the same time in 2022. That’s up—and in a huge way—from previous projections calling for a “low single-digit increase.” Further, this is up despite, as described by Gavin Hattersley, current CEO of Molson Coors—“…softness in the beer industry and continued caution around the consumer.”
Analysts aren’t exactly concerned about Molson Coors’ likely outlook here either. With five Buy ratings, nine Hold and one Sell, Molson Coors garners a Moderate Buy rating from analyst consensus. However, with an average price target of $68.80, Molson Coors stock can only offer investors a paltry 2.26% upside potential.