DENVER (AP) — Shares in Molson Coors fell in morning trading after the company said it was restating its 2016 and 2017 financials and reported revenue that missed estimates.
The beermaker said an error in its 2016 accounting related to its partnership in MillerCoors resulted in an understatement of its tax liabilities and an overstatement of net income by almost $400 million 2016. More accounting errors the following year related to MillerCoors and the tax law resulted in an overstatement of tax expenses, an understatement of net income and an understatement of the deferred tax liability for 2017.
Molson Coors shares lost $4.15, or 6.4 percent, to $61.21 in early trading.
Molson Coors posted fourth-quarter revenue of $3.02 billion — excluding excise taxes, adjusted revenue was $2.42 billion, which missed Street forecasts. Three analysts surveyed by Zacks expected $2.51 billion. Quarterly revenue declined more than 6 percent from the year-earlier period, hampered by declining sales in the U.S. and Canada.
The Denver-based company said it earned fourth-quarter net income of $76 million, or 35 cents per share. Earnings, adjusted for non-recurring costs and asset impairment costs, came to 84 cents per share.
The results beat Wall Street expectations. The average estimate of six analysts surveyed by Zacks Investment Research was for earnings of 78 cents per share.
For the year, Molson Coors Brewing Co. reported profit of $1.12 billion, or $5.15 per share. Revenue was reported as $10.77 billion, down 2 percent from 2017.
Molson Coors shares have risen 16 percent since the beginning of the year, but have declined more than 13 percent in the last 12 months.