Molson Coors Brewing Beats Expectations But Takes A Step Back Anyway

Just the facts, Fool.

Seth Jayson
Seth Jayson
Feb 14, 2013 at 12:00AM
Other

Molson Coors Brewing (NYSE: TAP) reported earnings on Feb. 14. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 29 (Q4), Molson Coors Brewing missed estimates on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue grew and GAAP earnings per share contracted significantly.

Margins shrank across the board.

Revenue details
Molson Coors Brewing notched revenue of $1.03 billion. The seven analysts polled by S&P Capital IQ expected a top line of $1.07 billion on the same basis. GAAP reported sales were 9.9% higher than the prior-year quarter's $937.3 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.69. The 10 earnings estimates compiled by S&P Capital IQ predicted $0.66 per share. GAAP EPS of $0.33 for Q4 were 66% lower than the prior-year quarter's $0.96 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 37.2%, 490 basis points worse than the prior-year quarter. Operating margin was 10.8%, 500 basis points worse than the prior-year quarter. Net margin was 5.8%, 1,270 basis points worse than the prior-year quarter.


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Looking ahead
Next quarter's average estimate for revenue is $849.6 million. On the bottom line, the average EPS estimate is $0.35.

Next year's average estimate for revenue is $4.46 billion. The average EPS estimate is $3.99.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 833 members out of 867 rating the stock outperform, and 34 members rating it underperform. Among 255 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 248 give Molson Coors Brewing a green thumbs-up, and seven give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Molson Coors Brewing is hold, with an average price target of $45.89.

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