The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Molson Coors (NYSE:TAP) and the rest of the beverages and alcohol stocks fared in Q1.
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 solid Q1; on average, revenues were in line with analyst consensus estimates. while next quarter's revenue guidance was 15.8% below consensus. Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, but the market was optimistic at the end of 2023 due to cooling inflation. The start of 2024 has been a different story as mixed signals have led to market volatility, and beverages and alcohol stocks have had a rough stretch, with share prices down 7.6% on average since the previous earnings results.
Molson Coors (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 $2.60 billion, up 10.7% year on year, topping analysts' expectations by 3.7%. It was a very strong quarter for the company, with a solid beat of analysts' earnings estimates and a decent beat of analysts' gross margin estimates.
Molson Coors scored the biggest analyst estimates beat of the whole group. The stock is down 20.3% since the results and currently trades at $50.63.
Is now the time to buy Molson Coors? Find out by reading the original article on StockStory, it's free.
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 an exceptional quarter for the company, with an impressive beat of analysts' earnings estimates.
The stock is up 3.2% since the results and currently trades at $296.44.
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.
Zevia PBC had the weakest full-year guidance update in the group. The stock is down 35.8% since the results and currently trades at $0.67.
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 $111.7 million, up 1.8% year on year, in line with analysts' expectations. It was a very strong quarter for the company, with an impressive beat of analysts' gross margin estimates and a solid beat of analysts' earnings estimates.
Vita Coco scored the highest full-year guidance raise among its peers. The stock is up 15.5% since the results and currently trades at $28.02.
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' earnings estimates.
The stock is down 8% since the results and currently trades at $49.15.
This content was originally published on Stock Story
