Beverage Stock Q3 Earnings Releases on Nov 1: TAP, PRMW

Shutterstock photo

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 CorporationPRMW 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.

Looking for Ideas with Even Greater Upside?

Today's investment ideas are short-term, directly based on our proven 1 to 3 month indicator. In addition, I invite you to consider our long-term opportunities. These rare trades look to start fast with strong Zacks Ranks, but carry through with double and triple-digit profit potential. Starting now, you can look inside our home run, value, and stocks under $10 portfolios, plus more. Click here for a peek at this private information >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

MOLSON COORS-B (TAP): Free Stock Analysis Report

COCA COLA CO (KO): Free Stock Analysis Report

DR PEPPER SNAPL (DPS): Free Stock Analysis Report

PEPSICO INC (PEP): Free Stock Analysis Report

PRIMO WATER CP (PRMW): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , Business , Earnings , Stocks
Referenced Symbols: TAP , KO , PEP , PRMW

More from Zacks.com




Equity Research

Research Brokers before you trade

Want to trade FX?