Molson Coors Beverage Co. shares fell on Thursday after the company reported a weaker-than-expected quarterly profit and lowered its full-year guidance, citing elevated costs and softening consumer demand.
The Chicago-based brewer posted adjusted earnings of 95 cents per share for the second quarter, below the 99 cents expected by analysts surveyed by Refinitiv. Revenue totaled $2.54 billion, also falling short of the $2.58 billion forecast. Net income declined 12% year-over-year to $233 million.
Management attributed the shortfall to higher production and transportation expenses, as well as lower-than-anticipated sales volumes across key markets, including the United States and Canada. The company also noted persistent pressure from inflationary trends affecting both raw materials and labor costs.
In response, Molson Coors reduced its full-year adjusted earnings guidance to a range of $3.80 to $4.00 per share, down from the prior estimate of $4.00 to $4.20. The midpoint of the new range implies a 5% reduction from the previous outlook.
Analysts at Jefferies downgraded the stock to Hold from Buy, citing the weaker outlook and limited near-term catalysts. The firm also highlighted concerns over the company's ability to pass through further price increases to consumers without eroding market share.
Molson Coors shares were down 4.2% at $48.15 in midday trading, extending losses from the prior session. The stock has declined approximately 15% over the past three months, underperforming the broader consumer staples sector.
The company remains focused on cost-cutting initiatives and efficiency improvements, including a restructuring plan announced earlier this year aimed at reducing annual expenses by $150 million by 2026.
