Beer makers little changed after earnings reports
NEW YORK—Shares of brewers were little changed on Wednesday, a day after Molson Coors Brewing Co. beat first-quarter earnings expectations on strong sales but Boston Beer Co. reported an earnings miss.
Molson Coors Brewing said first-quarter profit rose, ahead of expectations, helped by strong sales in the U.S. and Canada.
"The quality of earnings was high, with continued strength in U.S. demand, better-than-expected Canadian momentum, and synergy delivery ahead of schedule," wrote Goldman Sachs analyst Judy E. Hong, who rates the company "Buy," in a client note on Tuesday. "The one dark spot remains weak results in the U.K.
Meanwhile, Boston Beer said its swung to a loss due to costs associated with a glass recall. Excluding one-time items, however, results still missed analyst expectations.
However, Hong said in a separate note on Wednesday that Boston Beer results weren't as bad as the they could have been.
"Despite the challenging macro environment and ongoing cost pressures, we think results could have been worse given the operating results of other beer manufacturers during the first quarter," wrote Hong, who rates Boston Beer "Neutral."
Beer makers are facing rising costs for beer ingredients such as hops and barley and increasing consumer demand for imported or craft beers, cocktails and wine.
Molson Coors shares fell $1.42, or 2.5 percent, to $55.68 during midday trading. Boston Beer shares rose 18 cents to $43.88.
Elsewhere in the sector, Anheuser Busch Cos. shares fell 22 cents to $51.49. Redhook Ale Brewery Inc. shares rose 5 cents to $4.08. Pyramid Breweries Inc. shares were up 2 cents to $2.54.
