Molson Coors Brewing Co. reported non-GAAP earnings of 84 cents per share for the fourth quarter 2018, beating Wall Street analysts’ expectations of 80 cents.
The brewing company’s group sales of $2.419 billion, however, fell short of analysts’ estimate of $2.54 billion.Softening demand in the U.S. was apparently a drag on beer sales.
For 2019, the company expects to have free-cash flow of around $1.4 billion (plus or minus 10%).
But Anheuser-Busch InBev CEO Carlos Brito said that the company still doesn't have any data to prove that.READ MORE...
RBC Capital Markets upgraded its recommendation of beverage maker AB InBev, following the latter’s debt refinancing.
Shares of the world’s biggest beer company got upgraded to a top pick rating by RBC analyst James Edwardes Jones. Jones said, "The recent refinancing was sensible," and added, "It has replaced peaks of debt repayment with a smoother schedule which, at current exchange rates, should be doable from free cash flow, while significant appreciation in the US$ would be manageable.
Analysts have found a new drinking buddy in Constellation Brands (STZ) after Wednesday's selloff made the stock more attractive to slide up to.READ MORE...
Its shares dropped more than -10% Wednesday, following the announcement.
The beverage maker said that net income for its fiscal quarter ending November 30, decreased around -38% to $303.1 million (or $1.56 a share) - from $492.8 million (or $2.45 a share) a year earlier.Constellation’s operating margin in the period decreased 60 basis points to 37.3%.
The company made a downward revision to its fiscal 2019 profit outlook to a range of $9.20 to $9.30 a share, compared to prior forecast of $9.60 to $9.75 a share.
However, sales were a bright spot.
Heineken NV’s Brazil expansion is apparently pressuring its profit margins.
Last year, the Dutch brewing company bought the Japanese firm Kirin Holdings Co.’s Brazil business – an acquisition that established Heineken as Brazil’s second-largest brewer.Adjusted operating profit increased 1.3 percent to 1.75 billion euros ($2 billion) in the first half of the year, falling short of analysts’ estimates.