The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how beverages and alcohol stocks fared in Q1, starting with Monster (NASDAQ:MNST).
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 13 beverages and alcohol stocks we track reported a decent Q1; on average, revenues were in line with analyst consensus estimates. while next quarter's revenue guidance was 15.8% 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 had a rough stretch, with share prices down 5.8% on average since the previous earnings results.
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 11.8% year on year, falling short of analysts' expectations by 0.2%. It was a slower quarter for the company, with a miss of analysts' operating margin and earnings estimates.
Hilton H. Schlosberg, Vice Chairman and Co-Chief Executive Officer, said, “We continue to see growth in the energy drink market globally. In the United States, energy is the only segment of the beverage category currently showing unit growth. We continue to grow our sales in non-Nielsen measured channels.
The stock is down 4.9% since the results and currently trades at $50.78.
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Best Q1: 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 $426.1 million, up 3.9% year on year, outperforming analysts' expectations by 3.3%. It was a stunning quarter for the company, with an impressive beat of analysts' earnings estimates.
The stock is up 5.3% since the results and currently trades at $302.36.
Weakest Q1: Zevia PBC (NYSE:NYSE:ZVIA) With a primary focus on soda but also a presence in energy drinks and teas, Zevia (NYSE:ZVIA) is a better-for-you beverage company.
Zevia PBC reported revenues of $38.8 million, down 10.4% year on year, falling short of analysts' expectations by 1.6%. It was a weak quarter for the company, with revenue guidance for next quarter missing analysts' expectations and a miss of analysts' operating margin estimates.
Zevia PBC had the weakest full-year guidance update in the group. The stock is down 22.7% since the results and currently trades at $0.81.
Celsius (NASDAQ:CELH) With its proprietary MetaPlus formula as the basis for key products, Celsius (NASDAQ:CELH) offers energy drinks that feature natural ingredients to help in fitness and weight management.
Celsius reported revenues of $355.7 million, up 36.8% year on year, falling short of analysts' expectations by 8.8%. It was a very strong quarter for the company, with an impressive beat of analysts' earnings estimates.
Celsius pulled off the fastest revenue growth but had the weakest performance against analyst estimates among its peers. The stock is down 25.4% since the results and currently trades at $58.4.
Constellation Brands (NYSE:NYSE:STZ) With a presence in more than 100 countries, Constellation Brands (NYSE:STZ) is a globally renowned producer and marketer of beer, wine, and spirits.
Constellation Brands reported revenues of $2.14 billion, up 7.1% year on year, surpassing analysts' expectations by 2%. It was a decent quarter for the company, with an impressive beat of analysts' organic revenue growth estimates but a miss of analysts' gross margin estimates.
The stock is down 2.9% since the results and currently trades at $257.2.
