Molson Coors Beverage Company Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions

Molson Coors Beverage Company (NYSE:TAP) just released its latest quarterly results and things are looking bullish. It was overall a positive result, with revenues beating expectations by 3.7% to hit US$2.6b. Molson Coors Beverage also reported a statutory profit of US$0.97, which was an impressive 27% above what the analysts had forecast. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

View our latest analysis for Molson Coors Beverage

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Taking into account the latest results, Molson Coors Beverage's 17 analysts currently expect revenues in 2024 to be US$11.8b, approximately in line with the last 12 months. Per-share earnings are expected to grow 11% to US$5.70. In the lead-up to this report, the analysts had been modelling revenues of US$11.8b and earnings per share (EPS) of US$5.67 in 2024. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

With no major changes to earnings forecasts, the consensus price target fell 5.0% to US$65.17, suggesting that the analysts might have previously been hoping for an earnings upgrade. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Molson Coors Beverage at US$75.00 per share, while the most bearish prices it at US$53.00. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Molson Coors Beverage shareholders.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 1.5% by the end of 2024. This indicates a significant reduction from annual growth of 2.5% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 5.0% per year. It's pretty clear that Molson Coors Beverage's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Molson Coors Beverage's revenue is expected to perform worse than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Molson Coors Beverage's future valuation.

With that in mind, we wouldn't be too quick to come to a conclusion on Molson Coors Beverage. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Molson Coors Beverage going out to 2026, and you can see them free on our platform here..

Don't forget that there may still be risks. For instance, we've identified 2 warning signs for Molson Coors Beverage that you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.