Molson Coors (TAP) is seeing favorable earnings estimate revision activity and has a positive Zacks Earnings ESP heading into earnings season.

Exchange-traded funds with exposure to dividends slumped Thursday as more companies reported cutting their dividends or considering doing so, to conserve cash for operations. The WisdomTree U.S. MidCap Dividend Fund fell 2.8% midday, the SPDR Portfolio S&P 500 High Dividend ETF was down 2.7%, and the ALPS Sector Dividend Dogs ETF lost more than 3%. Molson Coors Beverage Co. , which reported earnings early Thursday, was one of the S&P 500's biggest losers by midday, down 11.6%. The funds listed above are among those with the biggest ownership stake in the brewer. Molson Coors executives told Wall Street analysts that they were considering "a suspension, reduction, or temporary elimination" of the dividend. It wouldn't be the only one: Royal Dutch Shell shares slid about 7% Thursday after saying it would slash its payouts by 66% - the first time for such a step since World War II.

Molson Coors is launching its hard seltzer Vizzy to take on White Claw.

Other steps the company has taken to save cash during the pandemic crisis include plans to cut 2020 capital expenditures by about $200 million, furloughing certain employees,” reducing discretionary spending, and limiting new hiring.

Molson Coors said a shooting at its Milwaukee brewery, in addition to the coronavirus pandemic, impacted quarterly results.

Q1 2020 Molson Coors Beverage Co Earnings Call

Image source: The Motley Fool. Molson Coors Brewing Co  (NYSE: TAP) (NYSE: TAP.A)Q1 2020 Earnings CallApril 30, 2020, 11:00 a.m. ET Contents: Prepared Remarks Questions and Answers Call Participants Prepared Remarks: Operator Good day and welcome to the Molson Coors Beverage Company First Quarter 2020 Earnings Conference call.

Shares of Molson Coors Beverage (NYSE: TAP) fell by 10.6% on Thursday in the wake of the company's release of first-quarter financial results that showed the business is being hit hard by the COVID-19 pandemic. For the quarter, Molson Coors recorded net sales of $2.1 billion, an 8.7% year over year decrease.

A federal appeals court overturned a previous ruling, allowing Bud Light to say whatever it likes, in advertising and on packaging, about corn syrup in its competitor’s beer.

Molson Coors (TAP) delivered earnings and revenue surprises of 16.67% and -3.22%, respectively, for the quarter ended March 2020. Do the numbers hold clues to what lies ahead for the stock?

Molson Coors Beverage Co. stock fell 1.6% after the beer brewer said the closures of spaces like sporting stadiums, bars and other "on-premise" venues is expected to hurt full fiscal year results. Molson Coors had a first-quarter net loss of $117 million, or 54 cents per share, after income of $151.4 million, or 70 cents per share, last year. Adjusted EPS of 35 cents beat the FactSet consensus for 33 cents. Sales of $2.54 billion were down from $2.80 billion and ahead of the $2.23 billion FactSet outlook. "We currently expect a significant adverse impact, particularly in the second quarter of 2020, to both net sales and profit performance for fiscal year 2020, and, possibly, beyond, due to the resulting closure of the on-premise channel in effectively all of our markets, as well as the anticipated negative impact of the pandemic on the global economy," the company said. Molson Coors estimates that off-premise sales accounted for 23% of the 2019 tally, 17% in North America and 50% to 55% in Europe. "[I]n nearly all of our markets the on-premise business has been effectively reduced to zero," the company said. Molson Coors, like many companies, benefited from pantry-loading in March due to COVID-19, but the company said sales were down 14% for the first four weeks in April. Molson Coors took a $50 million charge, including $31.5 million in lost sales, in the first quarter for a voluntary keg relief program that allowed on-premise venue customers to be reimbursed for untapped kegs. Molson Coors is taking money-saving measures like reducing 2020 capital expenditures by $200 million and furloughing certain employees in Europe and across the North American hospitality business. Molson Coors stock has tumbled 28.1% over the past year while the S&P 500 index is down 0.2% for the period.

Liquor companies are among the worst-hit from the fallout of the pandemic, as pubs and restaurants remain closed or are operating in limited capacity across the globe to curb the spread of the virus. Molson Coors will also cut capital expenditure by about $200 million, reduce marketing expenses and limit the number of new hires, while also evaluating various European government liquidity programs. The U.S.-listed shares of the Coors Light beer maker slipped after the bell, having shed about one-third of their value so far this year.

Molson Coors (TAP) has an impressive earnings surprise history and currently possesses the right combination of the two key ingredients for a likely beat in its next quarterly report.

National Beer Wholesalers Association CEO & President Craig Purser joins Yahoo Finance’s Zack Guzman to discuss how the coronavirus is disrupting the beer industry.

The company joins other brewers that have cut or suspended their investor payouts during the COVID-19 crisis.

Molson Coors Chief Communications and Corporate Affairs Officer Adam Collins joins Yahoo Finance’s Zack Guzman to break down the outlook for hard seltzer as the brewing giant launches Vizzy Hard Seltzer.

Molson Coors Reports 2020 First Quarter Results

Moslon Coors Beverage (TAP) is suspending its regular quarterly dividends on its Class A and Class B common shares otherwise payable in the 2020 fiscal year, as it seeks to boost liquidity during this challenging time.Similarly, Molson Coors Canada has also decided to suspend its regular quarterly dividends on its Class A and Class B exchangeable shares payable in the 2020 fiscal year.As well as suspending dividends, the TAP board has also taken several cost-cutting measures, citing the global economic uncertainty created by the coronavirus pandemic.These steps include: (i) reducing planned 2020 capital expenditures by $200 million; (ii) reducing discretionary spending, limiting new hires and decreasing marketing spend; (iii) furloughing some employees in the Europe business and North America hospitality businesses; (iv) shifting marketing investments to key media platforms; (v) using savings from the revitalization plan announced in October 2019; (vi) using its $1.5 billion credit facility as necessary; and (vii) actively evaluating European government liquidity programs.The company has already suspended its full-year guidance, after reporting disappointing results for the first quarter. For 1Q20, Molson Coors reported net sales of $2.1bn (vs consensus at $2.2bn) and adjusted EPS of $0.35 (with consensus at $0.33). In April, as pantry loading waned, Molson Coors North America STR’s (Sales to Retailers) were down 14%. In Europe, brand volumes were down ~40% in the first four weeks of April.“We are seeing evidence of North America consumer trade-down, with economy brands outperforming the broader product portfolio in April” wrote MKM Partners analyst Bill Kirk, adding “Further, we under-estimated the contribution from on-premise account to the Europe business, accounting for the 1Q net sales miss versus our numbers and the outsized disappointment in Europe.”Nonetheless the analyst maintained his buy rating on the stock with a $59 price target (60% upside potential). Shares are currently trading down 32% year-to-date. Overall, analysts display a more cautious outlook on TAP with a Hold consensus and $45 average price target (22% upside potential). (See Molson Coors stock analysis on TipRanks).Related News: Regeneron To Repurchase $5 Billion Stake From Sanofi   Weight Watchers Fires Thousands Over Zoom Facebook Workplace Hits 5 Million Paid Users As Remote Work Demand Rises More recent articles from Smarter Analyst: * Logitech Shares Lifted In Pre-Market On Share Buyback Plan, 10% Dividend Boost * Billionaire Ackman Exits Berkshire Hathaway, Blackstone To Fund Opportunities * HBO Max Launches, But Not Yet Available on Amazon, Roku Platforms * Apple Snaps Up AI Startup Inductiv, As Analysts Boost PTs On Store Reopenings

Molson Coors (TAP) Q1 results reflect on-premise keg sales returns and reimbursements due to the coronavirus pandemic as well as unfavorable mix.

The novel coronavirus has hit Anheuser-Busch InBev (NYSE:BUD) particularly hard. With a rally off March lows fading, Anheuser-Busch stock now is down more than half so far in 2020.Source: legacy1995 / Shutterstock.com It's a more stunning decline than an investor might think. Excluding travel, financials and retailers, BUD has been the worst large-cap stock of 2020.And it's not as if Anheuser-Busch stock roared into the year. Shares did post a nice rally in 2019 -- but off a six-year low reached the prior December. Heading into 2020, BUD still was nearly 40% below 2016 levels.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThere are both short- and long-term reasons for the selling pressure. But before last week's earnings report, I argued that Anheuser-Busch stock was a buy if it retested March lows. We're getting close to those lows. At this point, and after earnings, I believe Anheuser-Busch stock is a buy. A Short-Term HitUnquestionably, Anheuser-Busch is taking a short-term hit from coronavirus-driven fears. As I noted earlier this month, the company is getting a boost in off-premise (takeaway) sales. Data from Nielsen showed a nearly 10% increase over four weeks. * 20 Stocks to Buy If You're Still Betting on America to Thrive Of course, the off-premise business is getting slammed worldwide. Bars, restaurants, stadiums and other venues are closed. Sales have fallen so far that there are legitimate concerns about how brewers will dispose of stale beer.The impact was seen in BUD's first-quarter report last week. Revenue declined 5.8% for the quarter. But volume actually was up 1.9% in the first two months. Given higher pricing, revenue grew even faster.Indeed, revenue per hectoliter rose nearly 4% in the quarter. That suggests that revenue in January and February was up close to 6% -- while March sales fell in the range of 25%. The news for April was worse: a 32% decline in global volume.Unsurprisingly, adjusted earnings (what Anheuser-Busch calls "underlying profit") fell 30% year-over-year in Q1. The second quarter will be worse. The problem with the brewing industry is that costs don't come down all that much along with volume. The brewery still needs to operate; labor savings are minimal. Even gross margins fall when volumes come down.And so this crisis in 2020 is a multibillion-dollar problem for Anheuser-Busch. There's no two ways about it. Longer-Term WorriesAgain, that comes after Anheuser-Busch stock already had its struggles. The rise of craft beer worldwide created literally thousands of new competitors. The number of breweries in the U.S. alone almost doubled between 2014 and 2018.As a result, sales for BUD and other mega-brewers have stalled out. Indeed, Molson Coors (NYSE:TAP) has seen its stock fall even further, and its shares are retesting an 11-year low.In addition to the pressure on the industry, Anheuser-Busch's acquisition of SABMiller put tens of billions of dollars in debt on the balance sheet. So, it's not a surprise that BUD stock struggled even before the current crisis. The Case for Anheuser-Busch Stock at the LowsAll that said, price matters. Value matters.And I'd keep this in mind: Anheuser-Busch stock has lost a stunning $65 billion in market value so far in 2020.Again, the short-term hit is significant in terms of lost sales and profits. But it's not $65 billion significant. It's nothing close to that.And as far as the long-term impact goes, I'm skeptical it's all that negative. Normalcy will return. Bars and restaurants already are starting to reopen, if cautiously so.Many craft competitors unfortunately won't do the same. What we're seeing in sectors like tech is a realization that size and scale are enormous benefits in a time of turmoil. Anheuser-Busch has that size and scale.Elsewhere in the beverage industry, investors seem to have that understanding. Coca-Cola (NYSE:KO) estimated a global volume decline of 25% for the first three weeks of April. Its stock is down just 21% this year, a performance some thirty points better than that of BUD.Kraft Heinz (NASDAQ:KHC) is another consumer giant with heavy leverage. Its shares are down 10% YTD. Boston Beer (NYSE:SAM) stock actually has soared, and sits at an all-time high.To be sure, I'm not arguing that BUD stock should be positive amid the crisis. I'm not even convinced that Anheuser-Busch stock should be tracking Coke.But, again, outside of the hardest-hit sectors, BUD has been the worst large-cap stock of 2020. I simply don't think the long-term outlook supports that kind of decline. Investors will figure that out soon enough.Matthew McCall left Wall Street to actually help investors -- by getting them into the world's biggest, most revolutionary trends BEFORE anyone else. The power of being "first" gave Matt's readers the chance to bank +2,438% in Stamps.com (STMP), +1,523% in Ulta Beauty (ULTA) and +1,044% in Tesla (TSLA), just to name a few. Click here to see what Matt has up his sleeve now. Matt does not directly own the aforementioned securities. More From InvestorPlace * Top Stock Picker Reveals His Next 1,000% Winner * America's Richest ZIP Code Holds Shocking Secret * 1 Under-the-Radar 5G Stock to Buy Now * The 1 Stock All Retirees Must Own The post Anheuser-Busch Stock Makes a Solid Buy at Current Lows appeared first on InvestorPlace.