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Molson Coors Shares Jump on 1Q Results |
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Wednesday, 07 May 2008 |
BOSTON: Shares of Molson Coors Brewing Co. hit their highest point in more than two decades Tuesday after the Denver-based beer brewer reported adjusted first-quarter earnings above Wall Street's consensus.
The stock jumped as high as $57.74 before paring some of its gains to change hands at $57.04, up 7.3% intraday, on volume of 1.3 million. The issue's 30-day average volume is 971,000.
Prior to the opening bell, Molson Coors reported first-quarter adjusted earnings of $59.1 million, or 32 cents a share, topping the mean estimate of analysts polled by Thomson Reuters of 28 cents a share.
Net sales for the three-month period ended April 1 rose 10.4% to $1.36 billion from $1.23 billion a year earlier. Wall Street analysts were, on average, forecasting sales of $1.31 billion.
Goldman Sachs, which puts the stock on its Americas buy list, said the results were "strong across the board," with "impressive" underlying top-line growth, solid pricing, and cost savings ahead of expectations.
"We expect performance will remain weak across the year, but are nevertheless encouraged by share gains, solid 4% pricing, and a narrowed operating loss," Goldman Sachs said in a note to clients.
UBS maintained a buy rating and $62 price target on shares of Molson Coors, saying the company experienced "strong" volume and "solid" pricing globally.
"We are maintaining our buy rating based on continued U.S. strength, improving volume trends in Canada and the U.K., solid cost savings, and likely deal approval for the Miller/Coors joint-venture this month," UBS said.
Stifel Nicolaus said Molson Coors' gross profit of $521.6 million in the quarter exceeded its estimate of $489.2 million.
The firm, which rates the stock as a buy with a $62 price target, said the gross profit result reflected healthy-to-improving takeaway in all three major markets (Canada, U.S. and the U.K.) and price-to-mix realization generally in excess of inflation.
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