Molson Coors Delivers Massive Earnings Miss, Cuts Forecast Due to Economic and Tariff Concerns

Molson Coors delivered a massive earnings miss on May 8, according to MarketWatch, the most significant miss since February 2021.

The company’s net income for the first quarter ending March 31 tumbled 41.8% from year-ago levels to rest at $121 million; meanwhile, underlying earnings per share (EPS) plummeted to 50 cents from 95 cents, well short of the 78 cents average analyst estimate put forth by FactSet. Net sales were pegged at $2.3 billion (down 11.3%), marginally failing to meet the FactSet estimate of $2.4 million.

Overall, the results came in at 36% below Wall Street projections, making this quarterly earnings miss the most notable since February 2021’s 46% miss.

“Uncertainty around the effects of geopolitical events and global trade policy, including the impacts on economic growth, consumer confidence and expectations around inflation, and currencies has pressured the beer industry and consumption trends,” said Molson Coors CEO Gavin Hattersley, who is currently in the process of exiting the position as the beermaker searches for a new chief executive.

Tariff Concerns May Not Directly Impact Molson Coors but Could Depress US Consumer Spending Overall

The company did reiterate, however, that the impact of the tariffs would not be a key (at least, direct) factor in terms of the company’s immediate fortunes, as the majority of its beer slated for the U.S. market is produced by Colorado breweries, as Reuters noted.

The outlet quoted Zak Stambor, senior analyst at Emarketer, on the recent turbulence being encountered by Molson Coors as a whole.

“Amid leadership transition and lowered growth projections, the company seems adrift at a moment when strategic clarity is essential,” he said. The company “appears to have lost its footing,” Stambor added.

In terms of Molson Coors’ full-year sales growth guidance, these numbers were also subjected to a downgrading of expectations as well — the beermaker now expects a low single-digit decrease as opposed to a former position anticipating a high single-digit increase. This projection did not take into account any impact which currency movements might have in the months to come.

As a result of the poor earnings report and future guidance, investors seemed somewhat spooked. The company’s stock priced tumbled by 8% in early morning trading on May 8 but had improved to a loss of just 3.76% as of 12:56 p.m. ET.