Let's dig into the relative performance of PepsiCo (NASDAQ:PEP) and its peers as we unravel the now-completed Q2 beverages and alcohol earnings season.
These companies' performance is influenced by brand strength, marketing strategies, and shifts in consumer preferences. Changing consumption patterns are particularly relevant and can be seen in the explosion of alcoholic craft beer drinks or the steady decline of non-alcoholic sugary sodas. Companies that spend on innovation to meet consumers where they are with regards to trends can reap huge demand benefits while those who ignore trends can see stagnant volumes. Finally, with the advent of the social media, the cost of starting a brand from scratch is much lower, meaning that new entrants can chip away at the market shares of established players.
The 12 beverages and alcohol stocks we track reported an ok Q2; on average, revenues were in line with analyst consensus estimates. while next quarter's revenue guidance was 13.1% below consensus. Inflation progressed towards the Fed's 2% goal at the end of 2023, leading to strong stock market performance. The start of 2024 has been a bumpier ride, as the market switches between optimism and pessimism around rate cuts due to mixed inflation data, and beverages and alcohol stocks have held roughly steady amidst all this, with share prices up 0.5% on average since the previous earnings results.
PepsiCo (NASDAQ:PEP) With a history that goes back more than a century, PepsiCo (NASDAQ:PEP) is a household name in food and beverages today and best known for its flagship soda.
PepsiCo reported revenues of $22.5 billion, flat year on year, in line with analysts' expectations. Overall, it was a slower quarter for the company with a miss of analysts' organic revenue growth estimates and underwhelming earnings guidance for the full year.
The stock is up 5.7% since reporting and currently trades at $173.
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Best Q2: Molson Coors (NYSE:NYSE:TAP) Sporting an impressive roster of iconic beer brands, Molson Coors (NYSE:TAP) is a global brewing giant with a rich history dating back more than two centuries.
Molson Coors reported revenues of $3.25 billion, flat year on year, outperforming analysts' expectations by 2.2%. It was a strong quarter for the company with a decent beat of analysts' gross margin and earnings estimates.
The market seems content with the results as the stock is up 3.4% since reporting. It currently trades at $52.86.
Slowest Q2: Boston Beer (NYSE:NYSE:SAM) Known for its flavorful beverages challenging the status quo, Boston Beer (NYSE:SAM) is a pioneer in craft brewing and a symbol of American innovation in the alcoholic beverage industry.
Boston Beer reported revenues of $579.1 million, down 4% year on year, falling short of analysts' expectations by 3.1%. It was a weak quarter for the company with a miss of analysts' earnings and gross margin estimates.
The stock is flat since the results and currently trades at $269.59.
Monster (NASDAQ:MNST) Founded in 2002 as a natural soda and juice company, Monster Beverage (NASDAQ:MNST) is a pioneer of the energy drink category, and its Monster Energy brand targets a young, active demographic.
Monster reported revenues of $1.90 billion, up 2.5% year on year, falling short of analysts' expectations by 5.6%. Revenue aside, it was a weak quarter for the company with a miss of analysts' earnings estimates.
Monster had the weakest performance against analyst estimates among its peers. The stock is down 10.4% since reporting and currently trades at $45.29.
Vita Coco (NASDAQ:COCO) Founded in 2004 followed by a 2021 IPO, The Vita Coco Company (NASDAQ:COCO) offers coconut water products that are a natural way to quench thirst.
Vita Coco reported revenues of $144.1 million, up 3.2% year on year, in line with analysts' expectations. Taking a step back, it was a decent quarter for the company with an impressive beat of analysts' gross margin estimates but full-year revenue guidance missing analysts' expectations.
Vita Coco had the weakest full-year guidance update among its peers. The stock is up 8.2% since reporting and currently trades at $26.80.
This content was originally published on Stock Story
