Most beer enthusiasts right now are following Bud Light’s parent company Anheiser-Busch InBev (NYSE:BUD), after the Dylan Mulvaney affair. However, Molson Coors (NYSE:TAP) is currently making hay while the sun shines in the process, as its stock is up over 8% at the time of writing, thanks to a killer earnings report.
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Molson Coors posted earnings of $0.54 per share, which was a long, long way ahead of the $0.26 per share analysts expected. Revenue was also up, coming in at $2.35 billion against projections calling for $2.23 billion. Better yet, revenue increased 6.3% year-over-year, with net sales up 5.9% as well. Molson Coors even noted that it looks for a slight increase in net sales even with some significant macroeconomic headwinds already in progress.
Molson Coors CEO Gavin Hattersley pointed out that this was the eighth quarter running that Molson Coors has delivered top-line growth, a point which suggests that a return to Earth is due. Nothing grows forever, after all, and what goes up must certainly come down. Coors stock has already landed an advantage from the Bud Light / Dylan Mulvaney debacle. Meanwhile, given that Bud Light is now in a “panic” over the state of its own advertising—or so noted a report in AdAge—that’s a good opportunity for Molson Coors to potentially wring a ninth quarter of gains out of the market.
Analysts, meanwhile, are somewhat split about Molson Coors’ ultimate fate. With three Buy ratings, five Holds, and five Sells, Molson Coors stock is currently rated as a Hold. Worse, Molson Coors stock comes with 15.85% downside potential thanks to its average price target of $54.62 per share.
