Molson Coors Beverage Co (NYSE:TAP) Faces Earnings Miss and Adjusts 2025 Forecast

• Molson Coors Beverage Co (NYSE:TAP) reported earnings per share of $0.50, missing the estimated $0.78, with revenue of approximately $2.3 billion against the anticipated $2.39 billion.
• The company has revised its 2025 financial forecast downward, expecting underlying diluted earnings per share to grow in the low single digits and anticipating a low single-digit decline in net sales.
• Despite challenges, TAP's financial metrics reveal a price-to-earnings (P/E) ratio of approximately 10.58, a price-to-sales ratio of about 0.94, and an enterprise value to sales ratio of around 1.39.

Molson Coors Beverage Co (NYSE:TAP) is a prominent player in the beverage industry, known for its wide range of beer brands. The company operates globally, facing competition from other major brewers like Anheuser-Busch InBev and Heineken. On May 8, 2025, TAP reported earnings per share of $0.50, missing the estimated $0.78. Revenue was approximately $2.3 billion, below the anticipated $2.39 billion.

The earnings miss has led to a decline in Molson Coors' stock, as highlighted by the company's adjusted earnings of $0.50 per share, which fell short of Wall Street's expectations of $0.78 per share. This shortfall has impacted the company's guidance, contributing to an over 8% drop in shares on Thursday morning. The company has revised its 2025 financial forecast downward due to disappointing first-quarter results.

Molson Coors now expects its 2025 underlying diluted earnings per share to grow in the low single digits, a reduction from its previous forecast of high single-digit growth. The company also anticipates a low single-digit decline in net sales, contrary to its earlier prediction of a modest increase. CEO Gavin Hattersley cited challenges from the volatile global macroeconomic environment, including geopolitical events and global trade policy pressures.

The company has reported a significant decline in beer consumption, attributing this trend to concerns over tariffs and a slowing economy. This has led to the largest earnings miss in four years, prompting a downward adjustment in the full-year outlook. The decrease in consumer confidence reflects worsening economic conditions, further impacting Molson Coors' performance.

Despite these challenges, TAP's financial metrics provide some insights. The stock has a price-to-earnings (P/E) ratio of approximately 10.58, indicating the price investors are willing to pay for each dollar of earnings. Its price-to-sales ratio is about 0.94, suggesting the stock is valued at less than one times its sales. The enterprise value to sales ratio is around 1.39, reflecting the company's total valuation relative to its sales.