NEW YORK - Molson Coors Brewing Company (NYSE:TAP) reported a robust first quarter, surpassing analyst expectations on both earnings per share (EPS) and revenue.
The company announced an adjusted EPS of $0.95, which was $0.21 higher than the consensus estimate of $0.74. Revenue for the quarter was also higher, coming in at $2.6 billion against the analyst forecast of $2.5 billion.
The positive earnings report is attributed to the company's effective cost management and strategic initiatives, which bolstered its financial performance. The increase in revenue marks a solid start to the year, reflecting the company's ability to navigate a competitive market landscape.
Looking ahead, Molson Coors reaffirmed its full-year 2024 guidance, anticipating a low single-digit increase in net sales and a mid single-digit increase in underlying income before income taxes, as well as in underlying diluted earnings per share, all on a constant currency basis.
The company also expects capital expenditures to be around $750 million, plus or minus 5%, and underlying free cash flow to be approximately $1.2 billion, with a 10% variance.
Additionally, underlying depreciation and amortization are projected to be $700 million, plus or minus 5%, with consolidated net interest expense estimated at $210 million, also with a 5% variance. The underlying effective tax rate for 2024 is forecasted to be between 23% and 25%.
While the company did not provide specific figures for the next sequential quarter or the full fiscal year, the reaffirmed guidance suggests confidence in its financial trajectory and operational strategy. Molson Coors' management remains focused on delivering value to shareholders through disciplined capital allocation and a strong portfolio of products.
The company's CEO expressed satisfaction with the first-quarter results, stating, "Our performance this quarter is a testament to the strength of our brands and the dedication of our team. We are well-positioned to continue our momentum and deliver on our commitments for the year."
As there was no provided percentage movement for the stock following the earnings release, it is not possible to gauge the immediate market reaction to the company's financial announcement. However, the positive earnings beat and reaffirmed guidance are likely to be well-received by investors and may influence future stock performance.
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