Beverage Stock Q3 Earnings Releases on Nov 1: TAP, PRMW
We are already halfway through Q3 earnings, with results announced so far displaying an improvement over the preceding quarters. The quarter is on track to report notable growth after five quarters of back-to-back decline. According to a recent Earnings Preview report, of the 291 S&P 500 members that have reported Q3 results so far, 73.5% have posted positive earnings surprises and 57.4% have come ahead of top-line expectations.
The Consumer staples sector is showing positive signs with total earnings expected to grow 5.4%, while revenue is anticipated to inch up 1.1%. As of Oct 28, 53.1% of the total number of S&P 500 companies in this sector has reported their results, wherein 82.4% beat earnings and 47.1% of companies’ surpassed revenue estimates. Efficient pricing, solid cost saving initiatives, lucrative acquisitions and efforts to enhance product portfolio cushion these companies from macroeconomic hurdles, in turn driving their bottom lines.
The beverage sector is part of the consumer staples sector and has so far reported decent earnings this season. Higher sales of the so-called “healthy” non-carbonated drinks, improved performance in the North America segment, pricing gains, lower costs of key raw materials, cost reductions along with productivity gains and overall better execution have aided these soft drink companies to deliver impressive results in the past few quarters. We saw leading names like PepsiCo Inc. PEP, Dr. Pepper Snapple Inc. DPS and Coca Cola Company KO deliver stellar Q3 results despite currency headwinds and sluggishness in emerging markets.
Let’s take a look at what’s in store for two major beverage stocks which are scheduled to release their quarterly numbers on Nov 1.
We start with Molson Coors Brewing Co. TAP which is scheduled to report third-quarter 2016 results before the opening bell. The company has an Earnings ESP of negative 6.00%. Molson Coors’ Zacks Rank #2 increases the predictive power of ESP. However, we need to have a positive ESP to be confident about a positive surprise. Meanwhile, the Zacks Consensus Estimate for third-quarter earnings is pegged at $1.00. Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.
Last quarter, this beverage company posted a negative earnings surprise of 2.63%. The average of the last four trailing quarters stands at a positive surprise of 6.64%.
MOLSON COORS-B Price and EPS Surprise
MOLSON COORS-B Price and EPS Surprise | MOLSON COORS-B Quote
We note that Molson Coors has been struggling with weak volumes in the major markets of Canada, the U.S. and Europe over the past several quarters. We expect weak volumes to hinder growth in the to-be-reported quarter. Nevertheless, the company’s cost-savings initiatives, continuous focus on brand building and increased marketing investments should have a positive impact on third-quarter results, in our view. (Read more: What's in Store for Molson Coors in Q3 Earnings?)
Primo Water Corporation PRMW is also slated to report third-quarter 2016 after the closing bell. The Zacks Consensus Estimate for third-quarter earnings is pegged at 8 cents. The company has an Earnings ESP of 0.00% and a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
PRIMO WATER CP Price and EPS Surprise
PRIMO WATER CP Price and EPS Surprise | PRIMO WATER CP Quote
It has topped earnings estimates consistently in the trailing four quarters, with an average of 270.0%.
Stay tuned! Check later on our full write-up on earnings releases of these stocks.
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MOLSON COORS-B (TAP): Free Stock Analysis Report
COCA COLA CO (KO): Free Stock Analysis Report
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PEPSICO INC (PEP): Free Stock Analysis Report
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